A Special Guide On How To Invest In ICOs
- May 12, 2018
- Posted by: wp_coin
- Category: blog
I will show you in this article how to invest in ICO “Initial Coin Offering”, so you can invest in ICO assuming the least possible risks.
If you don’t know what is ICO, Read This: All You Need To Know About Initial Coin Offering (ICO)
Below I will explain briefly each tip that must be taken into account when investing in a cryptocurrency or ICO “Initial Coin Offering” :
People or entities involved
The team is fundamental when it comes to selecting a cryptocurrency or ICO, they are the ones who will move and develop the project. If the project is quality but the team is not, it is more likely to fall than a project that does not have quality with a team that does.
Popular member in the sector
For many and for me, that there is an expert member in Blockchain plus another expert in the field in which the ICO is developed, such as real state, end tech, social network.
I think it is a key point for the success of any idea, project, company or startup.
Known partners, advisors and investors
The partners or advisors are recognized much better, although it is not something so important, but it is worth taking it into account.
Project achievable, scalable and realistic .Do not invest in an ICO that promises to be immortal. Be coherent
Roadmap and WhitePaper
See your timeline. What milestones do you have? Is it realistic? Reachable? Are there agreements with partners? With exchanges? When do you get the Beta? And the final product?
Supply or quantity of tokens
The price of the low tokens does not mean that the value of the cryptocurrency is low since it is not the same as the cryptocurrency has a supply of 100,000,000,000 than 1,000,000 tokens.
Cryptocurrency X = 10 $ and 1,000,000 tokens = $ 10,000.00 capitalization
Cryptocurrency Y = $ 0.10 and 1,000,000,000 tokens = $ 100,000,000 of capitalization
In this case the cryptocurrency and worth 10 times the X. And that if we look at the price of the tokens of the A is worth 100 times more than the tokens of the cryptocurrency Y.
An active and faithful community is fundamental for the success of the project.
Active social networks
Check their social networks, look at your followers, do not trust if they have many followers but with little activity, since followers can be bought.
At least half trust is that they have Slack and Twitter, on the other hand, if they have a thread of their ICO in the community of BitcoinTalk also adds and finally if they have profile of Reddit, this social network is one of the most critical.
Whenever you invest in an ICO I advise you to write to one of the members, see how long it takes, the way they respond, with this you will discover if the team is communicative. A project in which the team does not communicate properly with investors will not reach any port.
The Telegram group of the project is a pretty good filter. If you join the group and see that it has not been written for several days or that it talks about any topic other than the project, do not invest in that project because the community is not faithful.
Here I just say that it is not the same to be in Livecoin or Cryptopia than to be in Kraken. Nor is it the same to be in Bittrex that in Bitfinex. Simply because Kraken and Bitfinex do not accept any cryptocurrency.
The better the exchanges in which you can buy and sell the cryptocurrency, surely the project is better.
How can I register on a ico “Initial Coin Offering”?
Now, a typical ICO ( each ICO is different, read the terms and conditions very carefully), it will look like this:
1. Register for the ICO through the project website.
Some ICO’s do not require any registration. This is an alarm signal; it is still possible that it is a legitimate project, but lately, most of the high profile ICOs have required users to make at least some type of registration.
Sometimes this will involve sending scans of your passport or a similar document. If you do not feel comfortable with this, get away.
In some cases, you will be asked to provide an address where you wish to receive the ICO tokens. Make sure you send a Parity / MyEtherWallet address from Ethereum to which you have access.
2. When the initial coin offering begins, send some ether to the address provided on the ICO website.
The ICO website will generally have clearly designated date and time to send funds. Do not send your ether before then, or after the ICO ends.
Many ICOs have a cap of a certain amount (such as 10 ETH per person). Do not send more than your personal limit.
Be very careful when sending funds. Check the ICO address three times before sending anything. There will be phishers sending you false addresses in networks like Slack; There could even be fake ICO websites as advertisements at the top of the Google search results.
Some high-profile ICOs can have thousands of people sending ether at the same time. The Ethereum network could become congested and transactions may take a while. You can check the status of your transaction by adding your Ethereum address here: “https://etherscan.io/address/”.
Note: Make sure you set the correct gas price and gas limit (gas is the extra ether you must pay for an Ethereum transaction to be made). Usually, these are presented on the project website. The values that are often seen are a gas limit of 250,000 and a gas price of 21 Gwei, but this varies from ICO to ICO. Do not put huge values; Gas is just another name for ether and the larger these figures are, the more money you will pay for a transaction.
3. According to the terms of the ICO, you get tokens in your address.
This could take a while; Sometimes, the tokens will be sent immediately, sometimes it can take weeks, months or even more.
When you receive the tokens, they may not be interchangeable immediately. This depends on the smart contract within the token. These details were probably presented on the project website.
Sometimes, things will go wrong or they will seem to have gone wrong. Do not be scared if you have not received your tokens immediately. During an initial coin offering with high participation, these things may be delayed and the terms may move a little. Check with other investors on social channels. If you really feel that there is a problem with your investment, communicate directly with the ICO team; They should be able to help you. On the other hand, there have been examples of ICO websites that have been hacked or even turned out to be complete scams. It is hoped that you have done your research to avoid misleading initial coin offers.
If you don’t want to lose your money, Please Read This: How To Avoid Losing Your Money In Initial coin Offering (Ico)
I bought my first coins, and now what?
The ICO is over, everything has gone well, and now you have the tokens in your wallet, so what to do next? You can save them, especially if you believe in the long-term success of the project. Some tokens come with advantages; can be used within the ecosystem of a project, for example, or even take dividends. You may be more inclined to keep those tokens.
You can also sell your tokens in an exchange. But it may take a while for a new token to appear in an exchange. There are numerous exchanges that list many tokens, including Bitfinex, Bittrex, Binance, etc. You will have to set up an account in each to sell your tokens through them.
There is no rule that you establish when an exchange can list a new token. Some tokens never appear in the list. Some of the most anticipated may appear in most of the previous ones quite quickly. Follow the announcements of the project and the exchanges to know when your token will appear in the list.
You may be able to sell tokens much earlier in a decentralized exchange like EtherDelta or RadayRelay, but learning how to work with them can be a difficult task and, if you’re not careful, you could press the wrong button and lose your tokens.
While the technical aspects of selling tokens vary from one exchange to another, the basic concepts are the same, and the buying and selling of ICO tokens are similar to buying and selling the same Ether.
Regarding investment strategies, they are a complex issue and are beyond the scope of this article. In general terms, you can treat tokens as actions; Strategies such as “buy with the rumor, sell with the news” or technical analysis (most of the exchanges will provide the tools for that) will be applied. But not everyone is made to be a trader; For most people, the greatest benefit of participating in an ICO is arriving early. If you have done your research and chosen a solid project with real growth potential, you should probably just relax, sit back and watch the value of your digital asset grow.
How can I register on a cryptocurrency exchange?
CEX.IO is one of the main exchanges worldwide. It has a coverage of 99% of the countries and allows the purchase of cryptocurrencies with both card and bank transfer
we will show you the steps of how to open and configure an account:
2. Then you must enable two-step verification; Then we must enter our cell phone number to which a 7-digit code will be sent (via text message-SMS), which is used only by the person who owns the account and the registered cell phone.
3. Already within our account in cex.io, we must configure it and we must add our credit card. We must search in the main menu the option: “CARDS” and then click on ” Add a new card”.
4. Now we must enter the data of our credit card. Which? For now only the card number and expiration date.
and Now, you must enter the CVV code (3-4 digits, they are behind your card) and then an amount that CEX.io charged to your credit card will arrive at the registered phone number and it will be returned again when you enter that amount.
5. it is time to validate our identity. We must upload a photo of our passport or the identification document of our country and a selfie photo with our card ( beware, you must hide the complete number of the card and the expiration date).
6. If everything went well, the system notifies that the card and your data (identity) are being validated/processed. The process lasts a few minutes and then send you a confirmation via email.
7. We can now deposit our euros or dollars to the platform (to exchange them later for a cryptocurrency, Bitcoin, Ethereum or other).
To do this, click on deposit, select the bank card you have already validated, enter the security code again and check the box in accordance with the terms of service. Also, enter the amount of euros or dollars you wish to deposit on the web.
Finally, click on ‘ Deposit ‘, and the funds will already be in your CEX.IO account ready to transform into Bitcoin or Ethereum
8. Select the ‘ Buy ‘ option on the page.
In the next window choose the cryptocurrency you want to buy. In the example it will be Ethereum (ETH), however, it will be exactly the same if you want to buy Bitcoin.
Also, select the currency you will use to pay (on the right side of the page). They can be euros, dollars, etc.
10. If we want to send our Bitcoin or Ethereum that we have acquired in Cex.io to a purse or another exchange (for example to exchange it for other cryptocurrencies), the first step will be to click on the button that says ‘Withdraw’, in the top menu.
Then, in the next window, scroll to the menu on the right and you must select the currency you want to send, choosing from among the available ones, the one you wish to send: Bitcoin (BTC), Ethereum (ETH)…
You can copy the amount that is reflected in ‘ Total Amount ‘ to send all the coins.
Next, copy the shipping address. Remember that it is usually a string formed by letters and numbers.
Next, CEX.IO will verify that you really want to send the funds. For this, you will be asked to write the code that will send you to the phone, if you activated the 2-step authentication.
check shipping funds authentication 2 factors
In the same way, it will send you an email to confirm that you want to send the coins. To confirm the operation, you will have to click on the link that you have been sent to the mailbox of your mail.
Congratulations! Your Bitcoin or Ethereum are ALREADY being sent.
I hope you enjoyed reading this guide talking about How to Invest in ICOs “Initial Coin Offering“. See you soon.