From my understanding an ICO stands for the initial coin offering. This is where the public can purchase the coin at a set price before being released on exchanges. The cryptocurrency is what you are purchasing and is what it is called after the ICO has finished.
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This is correct, however take into consideration that when you are buying a cryptocurrency which has some sort of track record you know that they won't just take your money and run. But the returns are smaller. Smaller the risk smaller the return and inversely.
Valid points