Instructions for participating in ICO Token Crowdsales
Cryptocurrencies are still unknown for many people and even tradicional stock investors have no idea how this new technology works or how to get their hands on tokens. If you want to Invest in Cryptocurrency & Blockchain Technology through Token Sales, you must follow these steps:
1. Buy bitcoin or ether in a cryptocurrency exchange
If it’s your first time, please read: how to buy Bitcoin & Ethereum.
This is easily done from any cryptocurrency exchange. We recommend Coinbase or Kraken. Hook up your bank account or credit card, make a purchase, and then wait a few days for your bank to process it. Just make sure to do it at least a week in advance of the token sale you want to participate in, as it takes days for these transactions to go through since they use the traditional banking system.
2. Transfer ether to a compatible walltet
This step is very important because you cannot participate in an ICO sending your coins form an exchange. The reason for this is that when you use a centralized service such as a company like Coinbase, you do not own the private keys to your bitcoin or ether address. The way the ICOs typically work, you send them your ether or bitcoin, and the smart contract immediately sends the tokens back to your address. Notice that all new tokens follow the ERC-20 standard, a standardized token on the Ethereum network that allows smart contracts on the blockchain.
If you’re using ether, which is commonly accepted in ICOs, you can use a site like My Ether Wallet to create a new Ethereum key there and transfer your ethers from the exchange you purchased to that wallet. If you’re using Bitcoin, Blockchain.info has a good user-controlled wallet. Many token sales accept other coins as well, but bitcoin and ether are the two most popular. Once you’ve transferred your coins to a user-controlled wallet, you’ll have an ether or bitcoin address whose private key you control and that means that you’ll be able to receive tokens there as well.
3. Participate in the ICO by sending your crypto to their address
The token sale will post an address where money is being collected during the live crowdsale. Be very careful that the address to which you are sending coins is actually the official address of the token sale. There are many scams trying to get people to send their ether and bitcoin elsewhere abound.
Read the complete guide on how to use My Ether Wallet. Finally, send a deposit to token sale address with correct data and gas limit values. Once the transaction is completed and the tokens are issued, you will see the new tokens stored in your wallet.
After the ICO closes, tokens will be listed on cryptocurrency exchanges where they can be traded, you will be able to buy more or sell your tokens according to the market price, the best tokens are usually available on Binance so we recommend you to open your trading account for free here.
If you would like to chat with other crypto investors and discuss about upcoming or active ICO, please join the official Telegram group 🚀