What do you know about how to buy your first ico? With the tremendous amount of various new projects popping out every day, trying to revolutionize the digital world with their brave new ideas, there is an amazing opportunity to make some decent profit.
‘ICO’ stands for ‘Initial Coin Offering’ and is an easy way for developers to obtain funds in order to fully develop their ideas. An investor can acquire a digital token, that will act as proof of supporting the project.
This way the investor not only can feel like an ordinary donor but also an owner of a product, as these tokens are often used later as a means of executing the service. They can be used to exchange for some physical goods or services, to access some part of the project, or vote on its direction and make an important decision almost like a shareholder.
But what is most important; the more popular the project gets, the more valuable these coins become. It’s worth adding that the initial price of the coin is often very low and an investor can buy it for as low as a few cents, while later on can be worth even thousands of dollars.
In this article, as a part of a small ”How to” series for beginners in the ICO investing world, I’d like to focus on the sole process of obtaining these new coins and tokens.
Money to invest
First, you need to have the money that you want to invest. But your ordinary dollars won’t do the trick. In many cases, the only way to purchase the tokens is through Bitcoin or Ethereum donations.
So head to your favorite cryptocurrency exchange and get some of these coins. Of course, it all depends on the project, there are many accepting different coins and also fiat currencies like dollars, but generally, Ethereum coin is the most widely accepted.
Make sure you really have that Bitcoin or Ethereum coins and you are the owner of them. That means, that they are safely stored in YOUR wallet. Don’t leave them on the exchange or use the exchange address as ”yours”.
It would help if you had them stored in a wallet that you own private keys to. It’s very important as you won’t be able to prove the donation if you don’t own the address from which you will be sending the money.
Buying the ICO
Send the amount you wish to invest to the address given by the ICO project. The details and address are probably easy to find on their website, with more detailed instructions and information about how many coins you will get and how usable these coins will be in this project in the future, where the coin distribution starts, and their goals and targets.
It’s very important to read carefully not only instructions on how to buy these coins but it is really important to read and research what they need this money for and what is this project about. Remember, never invest in what you don’t know anything about, even if there are many people backing this project already. It’s important to make sure it’s worth your money.
Getting the token
Done! You’ve just invested in your first project with ICO. Now they will probably be raising these funds for a few more weeks or months and will distribute the coins at the end of this period. It can come in various forms.
They may want you to download a dedicated wallet where you will get your own address and they will send these coins to you there. Or it can turn out to be supported and be sent to one of the already popular wallets, that you most likely have. It can even have the form of just being an Ethereum smart contract.
But a good ICO investment does not only include buying a random coin and holding it with the hope of profit. It’s necessary to properly research your project beforehand. In the next articles, we will focus on the process of choosing the ICO, how to spot the worth investing projects, and also we will give some tips on how to be careful and not fall into trap of fake ICO scams.