ICO (Initial Coin Offerings? -? Initial distribution of coins) ?-? This is a model for attracting initial cryptocurrency investments in a new project. Most investments are accepted in the two most popular coins? -? Bitcoin and Ethereum. When the period for accepting investments ends, the project organizers distribute a certain part of the issued cryptocurrency among the participants in the ICO. In this regard, one can draw an analogy of the ICO with IPO, Initial Public Offerings? -? Initial public offering – comments Andrei Mikhailishin, CEO Joys digital.
The total amount of funds raised through ICOs reached $ 5.6 billion last year. Coindesk, in the first quarter of 2018, the amount of funds raised through the ICO reached $ 6.3 billion. The ICO market is entering a more mature stage after 2017.
According to research Ey, in 2017, the largest number of projects and funds were collected in the following sectors:
• Blockchain and infrastructure – $ 1,150 million of attracted funds, the number of projects – 24
• Finance – $ 557 million of attracted funds, the number of projects – 22
• Advertising, social networks – $ 346 million of attracted funds, the number of projects – 7
• Exchanges, trading, investments – $ 242 million of attracted funds, the number of projects – 10
A huge number of companies enter the ICO. Among this set, you need to be able to find promising projects that deserve not only attention, but also real investments. In this article, we will provide step-by-step instructions on how to invest in ICOs..
1. Choose a project
How to properly assess the risks and choose an ICO for investment, you can find out here. After making your choice, be sure to read the legal documents of the project: Investment agreement (Terms and Conditions), Statement on policy and awareness on combating money laundering, Disclaimer and risks (Disclaimer of liability and risks) and other documents. Usually they are published on the project website, if they are not there – send a request to the team members.
2. Create a wallet (using Ethereum as an example)
For example, take Ethereum. To invest in cryptocurrency, you need a wallet. To start it, you can use the resource MyEtherWallet. The whole process takes about 5 minutes. To do this, follow these steps:
1. Go to the MyEtherWallet homepage and enter a complex password to create a wallet.
2. Download the Keystore / JSON file. It can be used to enter the wallet. After downloading, click “I understand. Continue ».
3. We buy cryptocurrency
Once you have created an Ethereum wallet, you can buy Ether cryptocurrency (ETH). The easiest way to do this is through special exchangers. They have several advantages:
• no need for registration and verification;
• a wide variety of payment systems;
• fast transactions.
To buy cryptocurrency, you can also use exchanges. However, many platforms require verification, so that users can replenish their account in fiat currency. Nevertheless, registration on the exchange will not be superfluous, since a new coin is unlikely to appear in the exchanger.
We recommend using monitoring to select an exchanger Bestchange. Using the service is quite simple. To purchase cryptocurrency, you need to follow these steps:
1. Choose the method that you will use to pay. All methods are displayed in the “Give” column. It should be noted that most of the exchangers work with popular systems in Russia:
• QIWI;
• Yandex money;
• Perfect Money and others.
2. Choose which cryptocurrency you want to receive.
3. Select an exchanger. When evaluating resources, pay attention not only to the cryptocurrency rate, but also to the reputation of the service. It is better to give preference to the exchangers with the most reviews..
4. We invest in ICO
After you have acquired cryptocurrency, you can start investing in ICOs. To do this, you need to perform several steps:
1. Register on the site of your ICO;
2. Go to the main page of the site and click the “Participate in ICO” button;
3. Choose a cryptocurrency for investment. In our case, it is Ethereum;
4. Indicate the address of the wallet from which funds are transferred;
5. Send the cryptocurrency to the specified address;
6. After the system processes the transaction, a certain number of new tokens will be transferred to your wallet. This can take anywhere from a few minutes to several hours – depending on the workload of the Ethereum system.
Sometimes projects transfer their tokens after the end of the ICO. Therefore, carefully read the terms of the investment agreement – this will help you avoid surprises in the question “how to invest in ico”!
5. How to get a new token
If the issue new token happens on the basis of Ethereum, then you can add it to your wallet. To do this, you need to perform a few simple steps:
1. Go to the wallet website, in our case, it is MyEthereumWallet;
2. We go into the wallet through the Private Key or in another convenient way;
3. Under the transaction history, we find the block “Token Balances”.
6. Where to get information on the ongoing or upcoming ICO
1. Forum https://bitcointalk.org;
2. Website https://icotracker.net?-? It contains general information on past, current and upcoming ICOs;
3. Website http://icorating.com?-? A more convenient site with detailed information on each project;
4. Website https://cointelegraph.com/ico-calendar?-? A news publication, releases an ICO calendar of projects with general information and linking to articles;
5. Website https://cyber.fund/radar?-? Russian investment platform of blockchain enthusiasts.
7. What you need to do before investing in an ICO?
1. Very responsible approach to the choice of the project;
2. To study all the possible information on the project;
3. Communicate with other potential investors in the forums where information on the project is published;
4. If knowledge allows, then study the project code and its business model;
5. Assess risks.
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Can you provide detailed instructions on how to invest in an Initial Coin Offering (ICO)? I’m interested in exploring this investment opportunity but would like a step-by-step guide to ensure I make informed decisions. Any tips or advice on selecting reliable ICOs and understanding the potential risks involved would be greatly appreciated. Thank you!