Categories: EducationFAQ

Cryptocurrency ICO Education – Sell or Hold?

In this final part of the cryptocurrency ICO education series, we will talk about what type of expectation investors should have. More specifically, there are certain timeframes one needs to take into account before investing in such a project. This also relates to how long it can take for investors to make money, and what the best time to sell could be. Do keep in mind no two projects are alike, though.

The Expectations Are High, But Patience is Key

Everyone who investors in a cryptocurrency ICO hopes to strike it rich fairly quickly. That is only normal, as investing in a project at an early stage has a great chance to increase revenue. This is especially true in the world of Cryptocurrency ICOs, where returns a range anywhere from 200% to 6,000%, depending on how long one wants to hold on to specific tokens. It is all about expectations in the end and should plan for it accordingly.

To put this into perspective, the ICO tokens you purchase during a cryptocurrency ICO will not double in value overnight. That is, unless the token is immediately added to a major cryptocurrency exchange right after you purchased it. The chance of this happening is slim to virtually none, although most exchanges are rather quick to list popular ICO tokens as a trading pair against Bitcoin.

Even when an exchange initially lists the ICO token in question, one should never have the impulse to sell them right away. It is certainly possible people will pay an arm and a leg for every single token in the hopes of seeing it rise in value. However, there will be dozens of investors looking to liquidate tokens as quickly as possible once they go live on an exchange. In some cases, one could be lucky, and sell the tokens at 5x their value right away. Those opportunities are very rare, and there is a lot of competition from other investors.

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A more realistic expectation comes in the form of holding on to your ICO token for at least a month. If no major exchange has added the token in that time, simply keep holding, as it is bound to happen sooner or later. That is, unless the project has blown up in the meantime, or some issues have been discovered with the project’s code. Once again, these are very rare exceptions, which is why investors need to do their proper research first and foremost.

Even if the coin is listed on a major exchange within that month, take your time to evaluate things properly. There needs to be enough liquidity to make thinking of selling a portion of tokens even remotely feasible. Moreover, the vast majority of ICO tokens will appreciate further as more time progresses. The ones with a 1,000% return or more are often listed on exchanges for months. Pick a selling price you feel comfortable with and write it down somewhere. Do not store your tokens in an exchange wallet, though, as that is only asking for trouble.

In the end, realistic expectations for cryptocurrency ICOs often require weeks, or months of patience. Moreover, one should never invest in the first project one comes across either. Prepare yourself properly, and calculate your potential profits and losses. Scoring a big return requires planning and patience, and both of these traits need to be part of cryptocurrency ICO investors’ expectations at all times.

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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