![]() This part also describes budget breakdown to assure future investors that the described project is not a scam. This is the most interesting section for first-time investors, who are reluctant to invest in cryptocurrency, as it gives all the answers to the questions regarding risk factors. Risk factors describe the issues that may occur during the implementation of the project described in the cryptocurrency white paper, and how these issues will be tackled.This is one of the most informative parts of a cryptocurrency white paper, containing information on token commercialization, product placement and its interaction with the economy. Presentation of the project with a detailed description of implementation strategies.Introduction also must include the description of basic concepts, definitions, and the algorithm of application. For instance, the introduction to Ethereum’s ICO white paper contains information on the history of cryptocurrency, the description of bitcoin, information on mining, alternative blockchain applications, etc. Introductions to the ICO white papers can contain additional information, necessary for the investors to understand the problem in its full scope. An introduction, which consists of a statement of the problem, a brief description of the problem as well as of the current situation on the market.The structure of a cryptocurrency (ICO) white paper consists of the following sections: To understand a cryptocurrency white paper, it is essential to know what constitutes it. To help you, as a potential cryptocurrency investor, understand white papers better, let’s take a look at a guide on how to read them properly. They are full of tech lingo and are written in a formal style which can be hard to comprehend. How to Understand a Cryptocurrency White Paper?Ĭryptocurrency white papers can be hard to read for those, who know little about cryptocurrency and ICO. Ultimately, cryptocurrency white papers exist to help investors make an informed decision. describing the roadmap to how this project will be implemented and what methods will be used to reach the goals of this project.giving reasons why this project is needed.explicitly explaining what this project is set to accomplish.informing the investors of a project involving cryptocurrency.What is a Cryptocurrency White Paper?Ĭryptocurrency white paper is a document, presented by a startup, which is aimed at informing and encouraging investors to participate in the ICO, initiated by this startup.Ĭryptocurrency white paper has as its aim: This is why cryptocurrency white papers exist. Because investing in cryptocurrencies involves high risk, you can understand why people are so hesitant to invest in it. Such a reaction at cryptocurrency is universal. Interestingly enough, 31% of respondents aren’t buying cryptocurrency because it’s ‘too high of a risk’ or they don’t fully understand, what purchasing a cryptocurrency involves and how it works. Only 5% of millennials, 3% of Gen X, and 2% of baby boomers would consider investing in cryptocurrency.Out of 3% of respondents, who bought cryptocurrency, 97% invested in Bitcoin.97% of respondents haven’t bought cryptocurrency. ![]() ![]() Yet, people are reluctant to invest in cryptocurrency.Ī survey, which united hundreds from respondents in Great Britain, has shown interesting results: We hear about it on the news, we read about it on the Internet. Today, cryptocurrency is a popular buzzword.
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