Over the course of the last couple of years, the number of alternative cryptocurrencies, popularly known as altcoins, have increased significantly. It is fair to say that cryptocurrencies form a new asset class - one which is relatively new and quite volatile. Nonetheless, investors who are interested in exploring these new digital assets have got plenty of options to choose from. Each of these represents a stake in a particular aspect of blockchain technology - distributed computing, gaming, social networking, prediction markets, smart contracts, et cetera. Owing to their huge numbers, however, it may be quite tricky to manage so many altcoins at the same time.
The Iconomi project is a brilliant attempt at addressing this very issue. Using this platform, investors (amateurs and experienced alike) can create a diversified portfolio of digital assets, also known as cryptocurrencies, at one place and manage it conveniently.
What is Iconomi?
Iconomi is a digital asset management platform which intends to connect people around the world and provide them with tools to take part in the newly emerging distributed economy. Iconomi is quite unique in the fact that no other company, as of mid-2018, has developed a service that allows people to invest in and manage multiple digital assets built on top of the blockchain.
The main features of Iconomi are Digital Asset Arrays, also known as DAAs. Digital Asset Arrays are nothing but diversified pools of various digital assets/cryptocurrencies. In simpler terms, DAAs comprise various combinations of digital assets, quite analogous to how mutual funds comprise multiple securities.
It goes without saying that each array can have multiple underlying digital assets which can be chosen depending on several parameters like stability, risk, volatility, et cetera. Considering that there are plenty of digital assets in the market currently, users can build and customise their own combination of these assets on the Iconomi Platform. For example, investors with a high appetite for risk can design a portfolio to aggressively pursue maximum gains.
To understand this concept better, let us consider the example of Blockchain Index - a Digital Asset Array available on the Iconomi portal. This array consists of popular cryptocurrencies like Bitcoin, Ethereum, EOS, Dash, Monero, Steem, Golem, et cetera. Each of these coins has a fixed weight in the index. Similarly, there is another DAA named Crush Crypto Core, which has been built with undervalued cryptocurrency assets. Several such arrays exist on the platform and users can browse through these and to the ones that are best suited for them. They can make their pick depending on several factors like market capitalisation, assets under management, return, volatility, composition, et cetera.
The Iconomi Platform has been designed in such a way that it is simple to use with utmost transparency and no hidden costs. Furthermore, liquidity is of paramount importance on this platform. Users can access their digital assets and manage them 24/7. The withdrawal process is fast and there is no contract lock-in.
The native currency of the Iconomi ecosystem is ICN token. The holders of ICN token will benefit from the DAA fees collected on the Iconomi Platform through the buyback program. However, these tokens cannot be used to buy units of DAA. In order to invest in digital assets on the platform, you need to have either Bitcoin or Ether.
Where to buy ICN Tokens?
ICN tokens are available on Binance, Liqui, Kraken, and HitBTC. It is an altcoin and therefore, you will have to purchase it against either Bitcoin or Ether.
ICN tokens can be stored in the ICN wallet available on the Iconomi Platform. You can also store your ICN coins in a private wallet. However, the best way to store your tokens is in cold storage. You can look into options like Nano Ledger S and Trezor.
ICN Token Mining
It is not possible to mine ICN tokens directly.
ICN Token Price Trends
As of May 30, 2018, the price of 1 ICN token is approximately 0.89 USD. The price of the token has been in a state of decline since the month of February, which was when the cryptocurrency bubble collapsed. At that time, the ICN coin was enjoying an excellent bull run. The price had crossed the $5 mark, rising all the way up from the $1 mark. This gain of roughly 500% came in less than a month, just like its peers in the cryptocurrency space.
Risks Associated with Investing in ICN
It is evident from the aforementioned prices that ICN is a rather volatile cryptocurrency. Investing in it from the perspective of making a quick buck is a risky proposition. Therefore, instead of looking at such altcoins, it is recommended that you look at safer, traditional instruments like mutual funds. If chosen smartly, mutual funds can deliver strong returns in the long-run.
The Reserve Bank of India (RBI) and Ministry of Finance has frequently cautioned the users, holders and traders of virtual currencies regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with virtual currencies. RBI also further clarified that it has not given any licence/authorisation to any entity/company to operate schemes or deals related to Bitcoin or any virtual currency. RBI has also barred its regulated entities from dealing or providing services to any individual or business entities dealing with cryptocurrency. The Ministry of Finance has also officially stated that virtual currencies are not legal tender or coin.
A&A Dukaan Financial Service Private Limited BankBazaar does not endorse investing or dealing in virtual currencies in any manner. The information provided on our website is solely for illustrative purposes and should not constitute investment advice or assistance in investing or dealing with crypto currencies. If you decide to invest or deal in cryptocurrencies, you should be aware that you will be dealing with the respective individuals or business entities dealing in cryptocurrency and BankBazaar has no role in any manner in such transactions or dealings. We strongly advise our visitors to invest in legally recognised financial instruments rather than risking their capital on virtual currencies which are unregulated instruments