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Should We Register For an IPO to Profit in The Short Term
As a crypto investor, one of the core ways to optimize profits with cryptocurrencies is by taking advantage of both short and long-term investment opportunities. This includes knowing when to buy cryptocurrency, understanding how to HOLD your coin, taking advantage of IPOs, and others.
If you’re an India-based crypto junkie and you’ve clearly understood how to buy cryptocurrency in India, you may be considering registering for an IPO to boost your profit. IPO, an acronym for Initial Public Offering, refers to the process whereby companies offer their shares or tokens to the public in a new stock issuance. The public share issuance enables a company to raise capital from the funds accumulated through public investors.
Similar to what you’d call fundraising, IPOs are great ways for startups with excellent project ideas but insufficient funds to materialize their project ideas. Investors purchase some of the project’s tokens at a specific pre-launch price and hope to make short-term profits (or long-term if they plan on staying) when the project is fully fledged. This token represents the investors’ stake in the company or project and may also provide utility benefits.
Although IPOs can be very profitable to investors ( and companies), they also come with huge risks and losses. Maybe you’ve seen many startup companies in India disclose their intentions to IPO, and this has made you wonder if you should register to increase your crypto profit.
The truth is, the decision whether or not to register for a company’s IPO depends on many factors. If you can analyze these factors and get convinced with the results of your research about the company and its crypto project, registering for the company’s IPO will most likely be a great decision.
Some of these factors include:
- the feasibility of the company’s project idea;
- the company’s background and its management team;
- the strength and potential of the company in the crypto market;
- how well you understand the business as an investor;
- how goals and trustworthiness of the company and so on.
Once you’ve decided to register for an IPO, you may want to know how much benefit you stand to gain and why (if you’re still in doubt) you should register for one. Here’s our take on it.
Getting in on the action early enough can bring you massive benefits as an investor, both in the short and long term. When you invest in an IPO, you can form the foundation for the company and be amongst the beneficiaries of its growth. Spotting a cryptocurrency company that has potential can be a daunting task. Especially with the multitude of IPO projects that seemed “genuine” yet ended up being a scam– causing investors to lose their monies.
However, if you’re able to identify a promising idea, you can take advantage of the scheme in its earliest stages by investing in its IPO. Considering that the IPO market for India has been booming for the past few years, there are literally countless cryptocurrency projects you can invest in.
People buy bitcoin in India either for long-term or short-term investment. If you are looking for a similar investment avenue, giving an IPO a shot might be worth it. The Indian stock market in 2017 alone pulled about 11 billion through IPOs. More and more crypto coin ideas are surfacing in India with great potential to make industry waves. Make sure to check the company’s whitepaper in detail and do more profound research about its credibility and the competency of its team.
A win-win situation for any investment goal
If you’re a short-term investor who looks forward to projects that rake in significant profits without necessarily wasting much time, an IPO can work perfectly for you. You can search for young companies in India with disruptive technology and pump in your funds. If the company manages to penetrate the market, that means massive profits for you, either short or long-term.
Companies will almost always sell their shares at a price higher than their pre-launch prices. With that, you can be sure to profit off them anytime you are ready to make use of your funds. Some investors register for IPOs to help them plan for inevitable future occurrences such as retirement or to accomplish plans such as purchasing a house, starting a personal company, etc.
When is the best time to invest in a potentially prosperous company? When it invites investors to register for an IPO. Why? Because this is the time when the IPO price is the cheapest. Even if you don’t have huge investment budgets, you can still profit from an IPO with that bit of amount. Companies are willing to offer huge discounts during this period to help them actualize their goals.
Once they hit their target and the IPO window is closed, investing in the company may become a tall order. The stock prices will most likely skyrocket, and investment opportunities may only be feasible for investors with huge budgets. Thus, once a project appeals to you and your deep research points to its feasibility in the market, waste no time registering for the IPO.
A typical example of highly successful IPO schemes is the Amazon 1997 offer. Investors could buy a share for as little as $18 and become shareholders. Suppose you acquired $5000 worth of shares through Amazon IPO; your shares would already be worth $2.5 million by mid-2018. And that’s a piece of great news if you’re a long-term investor.
More price transparency
In a post-IPO market scenario, the prices of shares tend to fluctuate. These fluctuations depend largely on continuously changing market rates, and the best price stockbrokers can offer for the shares. This entirely differs from a pre-IPO market scenario where the prices of shares are stipulated and made clear to both small and big investors. This unparalleled level of transparency in the pre-IPO stage makes it easier for investors of all categories to register and benefit from a company’s IPO.
Should you register for an IPO to profit in the short term?
IPOs generate a lot of media attention especially when a big startup is going public. Generally, investors love ICOs because they produce volatile price movements during the IPO periods. This can yield massive gains for investors. Although, it can also produce large losses.
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