What Is ICON?
ICON is a third-generation blockchain protocol that enables different blockchain networks to communicate with each other. It improves upon the previous generations of blockchain by combining the value transfer of Bitcoin with the programmability of Ethereum.
It is more efficient than many rivals, with high throughput and super-fast network speeds. ICON is built for decentralised applications (dApps) and its interoperability makes all blockchain data available in one layer so that businesses and people can connect and share services transparently.
Ordinary people have a say in the operation of the network through a comprehensive governance system, at the heart of which is ICON’s cryptocurrency, ICX. Holders of ICX stake their tokens with representatives who validate transactions and secure the network. Those who stake their tokens earn rewards.
Ways to Invest in ICON
Some choose to purchase ICON for a short period of time, selling for a profit at the first opportunity, while others prefer to hold their tokens for the long term. Keep reading to find out more about both of these options.
Buy and hold ICON
As you might have guessed, this strategy entails buying ICX and keeping hold of it for the long term. Skills and experience aren’t important here as the simplicity of this approach means that anyone can do it with minimal effort.
Proponents of this strategy believe the value of ICX will increase in the long term. What’s more, they can also delegate their tokens to a representative in order to earn staking rewards, so their balance isn’t merely sitting idle in a wallet.
Best ICON wallets
Private wallets are wallets to which only the owner has access, meaning they may be less susceptible to attacks than the wallets managed by centralised exchanges. For this reason, private wallets are a popular storage solution for long-term investors.
The main options are free and easy-to-use software wallets that are downloaded onto desktops and smartphones, or the more secure hardware wallets like Trezor, BitBox, and Ledger which will cost you money.
You may also make a profit by trading ICX as its volatility can be beneficial when buying and selling over shorter timeframes. Skills such as technical analysis come in handy for traders, who use them to decide when to enter and exit the market.
If you are going to be making regular trades, you may prefer to use the free, albeit less secure, web wallet provided by your exchange, as this is far more convenient than keeping your tokens off the exchange in a private wallet.
Should I Buy ICON Now?
Although we can provide you with informational material on the project, it is ultimately your decision whether you invest in it. There is no hard cap on the total supply of ICX, which can sometimes be a red flag for investors as inflation has the potential to devalue any currency.
However, ICON boasts some of the highest staking rewards in the industry, which could incentivise people to buy and stake ICX, driving demand for the token. Further demand comes from the fact that ICX is needed to pay fees for transactions and smart contracts.
This demand should increase as more people and businesses join and build on the network. With a governance system that encourages the community to add value to the network, a wide range of use cases already established, and projects pushing for global ICON adoption, this project and its cryptocurrency would appear to have strong potential.