Are you looking for funding for a Project Capital for a start-up or donations towards a worthy cause? Try crypto crowdfunding, the latest crowdfunding trend and an alternative to crowdfunding. Crowdfunding is now a traditional method, and it involves collecting money via a crowdfunding platform from a group of donors to raise capital or donations. The donors could be family, friends, investment groups, and personal investors. The goal is to attract a large group of people to raise the amount needed. The different ways of crowdfunding in the traditional model are reward-based, donation-based, and equity-based. In reward-based, the investors receive gifts, i.e. samples from the start-ups; in equity-based, the investors get an equity share in the new business venture. For donation-based, the investors give funds without expecting anything in return.
Examples of donations are donations for victims of fire, floods and war. The advantages of traditional crowdfunding to the entrepreneur are:
Access a large number of investors through platforms you would not have had access to. Secondly, it’s a good place to pitch your potential product and have various views from diverse people. Thirdly, you can interact with your potential investors and get mentorship.
Some of the most common traditional Crowdfunding platforms include GoFundMe, Kickstarter and Indiegogo. Some disadvantages include loss of raised funds if you fail to raise the target funds and The inability to secure investors for a project after putting in a lot of effort to crowdfund. Crypto crowdfunding provides a faster alternative way to raise funds without the limitations encountered by traditional crowdfunding.
What is crypto funding?
Crypto funding is a way to target investors and traders as potential donors. The investors will donate funds or crypto coins like Bitcoin, Lite coin and other altcoins to the crypto crowdfunding platform. There are different ways to raise money through cryptocurrency. Firstly through an ICO (Initial Coin Offering), similar to an IPO, the investors acquire the coins in exchange for their cryptocurrency. Secondly, a crypto crowdfunding platform allows investors to contribute using cryptocurrencies, e.g. Bitcoin cash and other Altcoins.
The advantages of crypto funding include no payment of any fees or hidden transaction costs. Secondly, many peer-to-peer platforms are making it easy for investors to contribute, thirdly the ability to raise large amounts of money within a v short time (especially if the method of choice is ICO). Fourthly, blockchain is safe and transparent and can be accessed from anywhere in the world. The major disadvantage is that the investor cannot access the risk associated with these start-ups or businesses. Examples of Crypto crowding platforms include Crypto Crowding, Tecra Space, Coinstarter, Wefunder and StartEngine. As a start-up or a person looking to raise donations for your worthy cause, go for Crypto crowdfunding as your preferred way to raise the capital needed within the shortest timeline. Think about all the international investors willing to trade their Cryptocurrencies for your companies ’ICOs or donate their Altcoins for your project.
