How To Sell Tokens After The ICO To Maximize Profit

How To Sell Tokens After The ICO To Maximize Profit

ICO Sell Tokens Strategies

Vitalik Buterin, the founder of Ethereum (ETH), wanted to create tokens that could represent any value, including shares. Essentially when a company sell tokens which are integrated into the company’s system. The company sells a specific number of tokens to whoever wants to buy. This allows the company to raise funds and distribute profits later on. If the company is successful, the token will be demanded more and thus the price of the token will increase in the market. This rise in value benefits investors in the long run. The people that buy these tokens aren’t seasoned investors, they’re regular people. It’s not hard to invest into a company during an ICO. So, if you like a project and you think they could be successful, you buy their token during their ICO.

However, a question which people haven’t answered yet, is when do you finally sell tokens which you bought in an ICO? Generally, people think about entering an ICO for two reasons; for a long term investment or to short the token. In this article, we’re going to explain both of these strategies for how to sell tokens bought in an ICO.

Going Short: Sell Tokens Early

Going short means that you believe that the token will decrease in value over time. If you look at the different ICOs happening right now, you might notice a small spike in price as soon as people are able to trade it on an exchange. Going short would be to sell tokens bought in the ICO as soon as you can trade them on an exchange. This strategy would only be beneficial if you are ready to invest a large amount since the price increase when the token is first traded is small.

Thus, you could end up making a small profit whilst knowing that your money is safe. To make this possible, you need to monitor carefully when the token will be tradable on exchanges; and sell it as soon as possible at high prices. This is because there are widespread doubts about ICO tokens working in the future.

 

Going Long: Sell Tokens Later

If you’re at all up to date with financial trading, you might be familiar with these terms. Active investors that purchase an asset with intent to sell it, later on, are going long. These investors speculate that the price will increase during the time that they hold the token. This should be done only if the token idea is brilliant and has some potential in the future. Although many tokens end up with a face value of pretty much nothing, you need to be careful to find the one which will hold value in the long term. This takes much more research, reading and involvement.

That means you’ll need to read many white papers before you make a decision on what to invest in. And then you wait. This is the hardest part, some people prefer to make a loss and sell whenever the price drops. However, if it’s a great idea in the works, the speculation will always increase the token’s value in the long term. Then, you sell tokens later on when they have at least a value increase of 10% or 15%.

Where to Sell Tokens?

In order to buy tokens when you decide which ICO to invest in, you will need to purchase BTC or ETH to take part in the ICO. You can purchase this BTC and Ethereum on Coinbase. Coinbase is the world’s leading exchange of major cryptocurrencies. It’s by far one of the easiest and most popular ways to buy Bitcoin or Ethereum; they provide everything for the beginner in the digital currency market. Coinbase gives you a free digital wallet upon purchase of cryptocurrency on their website. You can even choose to put it in a “vault” which means that Coinbase will put your coin on a hardware wallet for the future in high security. When you want to withdraw it, you need to tell them to take it out of the vault and you will receive them instantly.

If you already own some tokens, don’t forget to protect them with a hardware wallet. Read our Ledger Blue Review or our Ledger Nano S review in order to find the wallet that fits your needs.

 

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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