ICOs started gained a lot of attention in 2017 and during that period many projects were launched. Many ICOs are still launched today in 2018.
However, if you are new to cryptocurrency, the process of buying or participating in ICOs may appear to be very confusing.
Many of the ICOs currently built on the Ethereum blockchain. Not all, but many.
In many cases, you will need an Ethereum wallet in order to participate in the buying and selling of ICOs.
Below are a few steps on how to buy an ICO token.
1. Make An Ethereum Wallet
First and foremost, you will need a wallet where you can access your ETC that will be used to participate in the ICO buying and selling process. You can also use this wallet to store additional coins or tokens you acquired.
There are many types of wallets available today that will serve this purpose. If you have no idea what to choose, take a look at MyEtherWallet or Metamask as it is commonly used by cryptocurrency investors from all over the world.
Here’s a video that goes into more detail:
2. Acquire Some Ether
Most of the ICOs today acquire Ethereum as contributions hence the reason you need to have some in order to participate. Once your wallet is set up, the next step is to buy Ethereum.
The process may differ depending on which country you come from. Coinbase is perhaps one of the most popular and simple crypto exchange services that can provide its services to over 32 countries from all over the world.
Coinbase allows its users to buy both ETH, BTC and a few other cryptocurrencies. If for some reason Coinbase does not support your country, other options such as Binance also exist.
One of the easiest and most popular options is buying Bitcoin and then later trading it for Ether on an exchange service such as Shapeshift or Bittrex.
3. Move Your ETH To The Created Wallet
This step is very crucial as you can’t buy ICOs from the exchange that was used to purchase Ether or Bitcoin.
This is due to the fact that these exchange services are centralized services which control your private keys.
Therefore, any funds that are sent to the public address of the ICO from an exchange service will most likely be lost and no tokens will be acquired.
4. Send Your ETH To The ICO Address
At this point, you should have the most important elements in place and ready to start. Look at the project’s website that you want to invest in. Ensure that you are following or paying attention to the official channel of the project.
The site will normally have a tab, button, or call to action that indicates the token sale and additionally, an invitation to participate in it.
Once you get this, register for the ICO so as to be considered as a trusted investor. The information that you will be asked to give may vary. On average, ICOs will simply ask for your email and public wallet address.
However, some ICOs which are more serious will most probably want to ensure that they are in compliance with KYC/AML laws and will hence ask for more personal information.
Once you have completed your ICO registration, you should start getting several instructions and also the public address of where your Ether will be sent once the ICO is live.
After all this information is given to you, you will now be ready to receive tokens.
After your Ether has been sent to the project’s public address, you will receive tokens in your Ethereum wallet equal to the Ether that was sent. If you can’t see the tokens, you may be required to add them to the wallets monitoring list on your Ethereum wallet.
It is very important to do research on your own and not follow the hype of what seems popular. You should also understand that this is like any other investment and there is a possibility that you might end up losing all your investment.
Only invest in an amount that you can afford to lose. Avoid investing in technologies or products that you have no knowledge of and watch out for scams.
When investing in ICOs, it is always important to put more emphasis on the project itself rather than short-term gains. Lastly, don’t be afraid to invest in ICOs.
While it’s true there is a risk of losing your investment, this risk can be minimized significantly by doing research before and after you invest and also by being careful.
This video explains the process in greater detail.