Interested in
participating in an upcoming ICO of a blockchain company? But, you
have no idea where to start or how to participate in an ICO in
particular. We have got a complete guide that you can follow on the
way to your venture into the digital currency world.
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| ICO Development Company |
Nowadays you will
see most of the ICOs are run on top of the Ethereum blockchain via a
smart contract that collects ether tokens and exchanges these for a
new token presented by the startup business. The ICO developmentcompany ensures that the whole process happens completely on Peer
to Peer basis without any broker or exchange as an intermediary. Now,
let’s proceed to the step by step process of ICO participation:
Get
Bitcoin/Ether
ICOs are based on
cryptocurrencies, either Bitcoin or Ether. The first step is to
obtain one of these cryptocurrencies so you can buy Ether or Bitcoin
via online cryptocurrency exchanges such as: Coinbase or Bitstamp.
Register your account with the exchange and then transfer the money
from your bank account to the exchange account. With your fiat
currency, you can buy Ether/Bitcoin on the exchange you are
registered with. Cryptocurrencies bought by you will be sent to the
wallet app.
Create a
Blockchain Wallet
You will need a
cryptocurrency wallet to send and receive coins from exchanges and
the ICO. After you have got cryptocurrency using your fiat currency,
transfer your crypto from your exchange wallet to the secure
user-controlled wallet such as: MyEtherWallet. There are several
types of wallets catering to different user types and their
particular requirements. These consist of Desktop/Mobile Wallets,
Hardware Wallets, Online Wallets and Paper Wallets. It is highly
recommended to keep your cryptocurrencies stored on online exchange
wallets since they are vulnerable to hacking.
Get
Whitelisted
These days, most
of the ICOs require some form of whitelisting and KYC submission
prior to participating in an ICO. Whitelisting makes the whole ICO
process transparent and promotes even distribution of tokens among
all the interested contributors. While KYC (Know your Customer) make
sure that no criminal contributors get to participate in the ICO.
Usually, KYC requires ICO contributor or investor to submit the basic
information that helps in verifying their identity. The information
which might be asked of you is Personal ID, Address, Contact Number
etc.
Participate In
the ICO
Now when you have
got your cryptocurrencies in your personal crypto-wallet it’s time
to dive into the ICO. Now, all you need to do is to send your
cryptocurrency to the particular ICO address to get new tokens.
However, the transaction should be from your personal crypto wallet
to the ICO address, not through an exchange.
Make sure to read
the general terms of the ICO and the guidelines for token sale
participation. It is suggested to follow the latest news and social
media channels of that particular ICO in order to stay updated. After
the transaction is completed, one of the following scenarios might
happen depending upon how ICO handles the transactions:
-
You will receive your tokens as and when the token sole ends
-
You may have to redeem your tokens manually
-
You may have to wait for a few days for your tokens
Securing Your
Tokens
Received the new
tokens! Congratulations, you should consider securing them with a
cold storage wallet for the security purpose. You will also need to
have some extra ETH stored in your wallet to pay for transaction
costs of sending money from wallet to wallet.
We hope that you
enjoyed the read and found it helpful for your ICO participation
endeavors. Before you participate in an ICO, go through this guide
once and you will enjoy the whole process of dealing in digital
currencies.
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