Participating in an ICO? The Main Steps You Need to Follow

You’ve heard of ICOs raising $200 million… in under 60 minutes! Participating in such an event is more than an investment, it’s a real race. And it isn’t only stressful, it is riskier too. There are so many things that you can do wrong and lose all your investments. This is why you should prepare yourself properly and know exactly what’s about to come.

Why do you need to participate in an ICO?

There are a lot of reasons why you should participate in an ICO, based on the project and token usage inside this project. But the most common reasons are:

  • Becoming an early adopter expecting bonuses for the future service.
  • Purchasing the tokens at an early stage discount at the Pre-ICO and ICO for short profits.
  • Considering a strategic long term investment because you find value in the project and the team behind it.

The way how you could work on it is buyback or trading on an exchange.
To participate in an ICO, regardless of the amount you want to invest you can only do it with cryptocurrency.

How to setup a cryptocurrency wallet?

Top-3 most popular wallets are:

You need to choose one of the top wallets. You can use the web-based version or download and install it on your own computer, then follow closely the instructions provided.

Always make sure to back up the generated wallet. Copy your mnemonic phrase on a paper and place it in a safe place where only you’re having access and make sure you’re setting up a strong password that you can remember.

How can you buy cryptocurrency?

You need to exchange your fiat currency into cryptocurrency. ETH can be purchased from a digital currency provider or using an exchange.

Top-3 most popular exchanges are:

These services may require validating your identity which can take from a few days to a few weeks.
Use your wallet’s address to receive your ETH tokens. The transfer duration may vary based on the purchasing method you chose. It can be as fast as 15 minutes to as long as 24 hours.

Make sure you’re having the correct amount in your wallet and you have the back up in a safe place in case something happens.

How can you prepare for participation?

Some ICOs may require for you to register for the token sale on an earlier date before being able to actually contribute, while most of them are starting on a fixed date, on a predetermined hour or block.

Just be sure to be on their website at that time on a fully charged device with a stable internet connection.

It’s ICO time!

Once the time is reached, if the website didn’t update, you can refresh the page to make sure you’re having the latest version. A new section, button, link should be available now. Follow the required steps until you reach their wallet address.

Now you need to send them the amount you’re willing to invest. Access your wallet and choose to send tokens. Enter their wallet address. Select the amount you want to send. Generate the transaction. Verify again if the details are correct, especially the address you’re sending it to. You will lose all your money if you’re sending them to the wrong address. When you’re sure everything is alright, hit send.

If there are no future steps listed on their website you can close that page. To make sure the transaction succeeded you can track it through the etherscan link.

After the token sale is complete, they will announce it on the website, you’ll be able to claim your desired tokens.

Top-3 most common mistakes while making the transaction:

  • Not enough gas (you should have enough spare ETH in your wallet)
  • Writing the sending address by hand (you should copy paste it or scan the QR code)
  • Not checking the transaction (you should always check you received the tokens after the sale ends)

Where are your tokens?

You’re either getting your tokens directly into the wallet and you’ll be able to see them under the custom tokens section, or you’ll need to claim the tokens yourself. Be sure you’re doing this, otherwise you can lose all your investment. It can be done through their website or generating a claim transaction from your wallet. Make sure to follow the required steps you’ll find in their instructions.

If you need to claim the tokens yourself, you have two choices. Do it through their website interface or generate a claim transaction from your wallet. Make sure to follow the required steps you’ll find in their instructions.

Verify the received the correct amount of tokens and keep your wallet backup in a safe place. Success on your future investments!

Buy more and sell on exchange

After all of that, you could wait until the token will be listed on an exchange and start buying and selling there, or you could wait until the project will be ready and your tokens will increase in price. Your investment strategy is your winning point!

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