ICO Bonus Tokens Can Reduce the Value of Your Investments

April 30, 2018 by Adrian Thorpe

ICO Bonus TokensThe one way that seems to be used a lot these days to get potential investors to part with their funds is by an initial coin offering giving away bonus coins or tokens to those investors who are prepared to buy into such a scheme early.

As such it isn’t going to take you very long to come across all manner of different initial coin offerings and find that you can get a huge number of bonus tokens if you do buy into them in the very early stages of an ICO or even pre-ICO too.

It is not unheard of from some ICO’s to be designed in such a way that you could get 50% of the tokens you buy paid out to you as bonus tokens, and that could tempt to you to into such a scheme.

However, at the end of the day always keep in mind that as soon as any ICO has achieved its funding goal and the bonus tokens have then been distributed to early investors, there is the risk that those bonus tokens could reduce and often quite dramatically the value of your investment.

If the value of the tokens when they go on sale on digital currency exchanges does drop then you are going to be sitting on a loss straight away and could end up waiting a very long time if ever, for the value of them to fully recover and show a profit!

Importance of Initial Coin offering Due Diligence

It has been suggested that around 50% of the initial coin offerings and token generation events you will find available online are out and out scams, and as such when you are thinking of making investments in any of them you should never underestimate the important of doing your own due diligence.

Sadly, scammers these days are not stupid, and they can spend quite a lot of money making an ICO website looking very realistic and appealing to potential investors, however if you do not careful vet and check out every single aspect of them you do risk losing your money.

There are of course many different things you should be on the lookout for when comparing and vetting any initial coin offerings and token generation events, and the very first thing it to checkout thee team that are behind the business concept.

Next look at the financial details of that concept and their business plan and check to see if the company is registered legally anywhere. Check all the social media pages that an initial coin offering has live and double check to see if those are the official accounts of an initial coin offering or token generation event.

Some ICO promoting websites now perform additional due diligence themselves on the teams behind the ICO’s they are promoting, but you need to be 100% those websites are legit too, it will take time to perform such due diligence, but it is better to do so that get ripped off!

Low Rick Cryptocurrency Investing

There are no low risk cryptocurrency investments you could choose to make, for every single coin or token you buy into could fall in value just as much as they could rise in value too, so keep that fact at the forefront of your mind.

The only way that you are going to reduce your chances of losing out big when investing in any cryptocurrencies is by keeping the level and value of your investments to an absolute minimum.

It may also be beneficial for you to also consider spreading the level of risk you do have around somewhat, and by that, I mean you invest in a basket of different coins and tokens rather than pinning your hopes that just one cryptocurrency you buy into is going to rise in value, for it may not do so.

By keeping your investments down to an absolute minimum and spreading the risk around by buying into a range of very low-cost tokens, you ill still therefore have exposure to the cryptocurrency market place but will not run the very real risk of losing large amounts of cash.

However, if you are prepared to take some risks, and big risks too then you should consider buying into some of the more mainstream cryptocurrencies which could be Bitcoin and Ethereum, but only do so if you are pared to make some big losses as well as some potential large profits and gains too!