Why investing in new cryptocurrencies is so risky


  • TECH
  • Saturday, 24 Mar 2018

The providers of cryptocurrencies themselves decide whatever rights or claims are granted to investors.

Digital currencies release waves of euphoria for some investors – but it's not all about Bitcoin. Investors in more and more countries are able to take part in Initial Coin Offerings (ICO), the means by which companies raise capital for a new cryptocurrency.

During an ICO, new digital units are generated on the basis of new or existing cryptocurrencies, and investors can then purchase the so-called coins or tokens. Payment usually has to be made in a virtual currency, but sometimes legal currencies are accepted.

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