ICO Fiat Currency and Its Acceptance by ICOs
There are loads of new investment vehicles in the 21st century. This is primarily due to advances in big data and new types of currencies. Big data and predictive analytics have played a crucial role in the growth of bitcoin, litecoin and other virtual currencies. The market is growing at an unprecedented pace.
Many people are starting to invest in ICOs (initial coin offerings) with traditional currencies too. However, they wonder whether the investments will pay off. The good news is that new predictive analytics technology has made it easier than ever to forecast future values of these currencies and the expected ROIs. The same predictive analytics models have proven their viability with traditional investments, so it only goes to reason that they will be useful for ICO valuation as well.
Predictive Analytics Has Given Rise to New ICOs
ICOs have become a breakthrough method of raising capital to launch or develop a new product or service. ICOs are popular due to their speed of fundraising and their exceptional volume. Such projects usually accept the most commonly used cryptocurrencies, such as Bitcoin or Ether. This means that an investor has to first purchase crypto on the exchange, and only then can he or she contribute to the project.
Predictive analytics technology has been used to help set the value of the virtual currencies behind these ICOs. It is also helping in other ways. It allows ICO managers to forecast risks and attract potential investors. Even fiat investors that have been skeptical of these offerings have started pledging capital, since big data technology has helped them improve the performance of their ICO portfolios.
The process is not that complicated, though it takes additional time and effort, especially when it comes to seeking safe and secure ways to buy cryptocurrency. There arises the question: why not contribute directly in U.S. dollars or other currencies?
Fiat currency is one of the options. The main reason for its convenience is that it is simple in the context of transactions. Using various payment methods, one can instantly send his/her fiat and easily invest in an ICO of interest. You can get a consultation on how to launch an ICO that supports fiat payments here.
Let’s consider in detail what exactly fiat currency is, and discover different ways that it can be accepted during an ICO.
What Is Fiat Money?
Fiat currency was presented to the community as an alternative option to commodity-backed money. Fiat currency is well known for not having a physical match. Instead, its value depends upon the government’s decision, or an agreement between parties. Fiat is considered legal currency, the value of which is relative to supply-and-demand economic factors, inflation, fraudulent activity, and other aspects influencing economic stability. Hence, fiat value fully depends upon current economic conditions and economic credibility.
What is fiat currency, and how is it used? It comes as no surprise that all countries use fiat as a payment option. Therefore, one can conduct transactions and transfer payments in different currencies like U.S. dollars, Euros, Grivnas, or British pounds, regulated by the specific country’s banking requirements. Another distinctive feature of fiat currency is its convertibility. Any currency can be converted to gold, silver, or another precious commodity.
Fiat currency is advantageous, as it provides:
- value storage
- digital accountability
- exchange promotion
Financial institutions turned to fiat usage in order to eliminate unpredictable economy booms. Additionally, they gained better control over supply in order to maintain liquidity and currency rates and flow more efficiently.
Accepting Fiat ICO Benefits
Having understood the definition of fiat money, let’s discuss the benefits of its acceptance by ICOs. Different projects have different regulative policies according to the country’s ICO regulations. Before investing, devote some time to research in order to learn the finer details.
The greatest benefit of fiat acceptance for investors is that they can contribute it directly into a project. In other words, investors can use their U.S. dollars, Euros, British pounds, etc. in ICO crowd sales. Accepting fiat ICO projects provide their contributors with increased efficiency. Can it get any better?
Speaking of ICO projects, there are other advantages, as well:
- ICO fiat currency reception attracts more investors.
- Running an ICO with fiat boosts fundraising.
As of today, about 15-20% of ongoing initial coin offerings accept fiat for token-sale ICOs. Applicature has investigated a range of investment options with your fiat currency. Let’s check them out!
There are several ways to invest in an ICO with fiat:
Fiat Cryptocurrency Wire Transfers
Wire transfers are fast, affordable, and most importantly, easy to use. Bank or wire transfers are known for processing SWIFT payments in just a few working days. In regions of the European Union, SEPA transfers can take just a few hours.
Wire transfer is a great way to send fiat currency to an ICO. Another benefit is that these types of transfers are perfectly suited for transferring large amounts of money. There is one thing to keep in mind: these transfers are processed through banks that usually have their own requirements and policies. This can include identity verification, and can therefore take several hours or days. Just remember this, and check ICO dates when contributing.
ICO Fiat Currency Payments via Card
Although there is such an option, we should stress that Visa and MasterCard do not commonly support cryptocurrency transfers. s time goes on, however, more and more options are considered, and it is just a question of time until crypto is fully supported.
Some projects do receive fiat as payment via cards. In 90% of cases, this is performed through an intermediary charging fees for money input. Another option is sending fiat through an ICO platform. This requires legal registration and the willingness of a cooperating bank.
Below, we present several ICOs accepting fiat via card and wire transfers:
1. CrowdWiz ICO allows the processing of payments in Bitcoin, Ether, and Litecoin. Additionally, it provides the option of paying with fiat via bank card or transfer. One only has to log in, decide upon the type of payment, and receive the necessary information for further steps.
2. The Ananas Foundation promotes peace with the help of technology. Its native Anacoin is used within the project. Investors are enabled to purchase their tokens with Ether or via credit card. This project supports more than 135 fiat currencies.
3. Stripe processes credit and debit card payments, as well. It accepts major bank cards from any part of the world. Additionally, Stripe allows the saving of data in order to repeat transactions several times.
Also check out the list of the most successful ICO projects.
ICO Fiat Currency Payments through Cryptocurrency Exchanges
Another way to contribute to an ICO with fiat is to use cryptocurrency exchange platforms. In this case, security should be prioritized. Pay attention to exchange ratings, feedback, level of security, and volumes of liquidity.
The most commonly chosen exchanges are:
- LocalBitcoins, etc.
In order to take part in a crowdsale, you’ll need to possess Ethers. What’s different here is that the exchange automatically converts your currency, and allows easy, fluid transactions.
Because this example may seem complex, some initial coin offerings offer specially-established platforms for increased convenience. This requires subscription through fiat-based gateways:
We have outlined the main ways to use fiat as an investment tool during an ICO. Make sure to check and verify all platforms, projects, and their team members before making any investment. Remember, it’s better to check twice! Then make your choice and enjoy. Learn more about ICOs here, and contact the Applicature team experts with any questions.
Predictive analytics is playing a crucial role in the future of ICOs. Many investors are using this analytics technology to improve their investments, which is attracting more capital to ICOs and increasing the growth rate of virtual currency investment vehicles.