What is a cryptocurrency ICO?
Initial Coin Offering (ICO) is the acronym for Initial Coin Offering, which is the equivalent of an Initial Public Offering in the cryptocurrency industry (IPO). For example, a company may seek funding to create a new coin, application, or service that can correctly and legitimately launch an initial coin offering (ICO) in order to raise capital for an upcoming project (s).
Investors can participate in an Initial Coin Offering to acquire a company-issued cryptocurrency. This token may have utility in relation to the company’s product or service, or it may simply represent a stake in the company or project. Clearly stated, ICOs are generally unregulated, so investors should conduct extensive research and due diligence before investing in ICOs.
BENEFITS OF INVESTING IN ICOs
Popular Method of Fundraising
In reality, the primary purpose of initial coin offerings (ICOs) is to raise capital for projects. When inviting investors who will undoubtedly profit from the project, the best way to proceed is through transparent information and a standard whitepaper. They raise funds for projects related to cryptocurrencies.
2. Straightforward Administration
Online services facilitate the generation of cryptocurrency tokens, making it easy for investors and the companies behind the project to launch initial coin offerings (ICOs) and observe the influx of additional investors.
Returns Potential In Quantity
Early investors in ICOs are always motivated by the expectation that the coin’s value will increase after its launch, thereby attracting more investors. In all honesty, this is the most obvious benefit of an ICO: the potential for high returns.
Improve Your Cryptography Understanding
Investing in ICOs will facilitate a deeper comprehension of the digital world and cryptocurrency.
HOW TO INVEST IN FIRST COIN ISSUES
Initial Coin Offerings (ICOs) or token sales are generating significant interest among institutional investors, individuals, and even corporate institutions.
Initial Coin Offerings are the new Initial Public Offerings or the subsequent generation of crowdfunding. The ecosystem is still immature and devoid of definitive standards, making it difficult for the average person to participate in token sales.
In this article, we will discuss how to invest properly in order to participate in ICO token sales.
Having Cryptocurrencies in one’s possession
To participate in an Initial Coin Offering (ICO), you need Cryptocurrencies that are no longer Altcoins, namely Ethereum or Bitcoin.
Note that fiat currencies cannot be used to participate in an initial coin offering. You must acquire cryptocurrencies if you do not already possess them.
The best way to buy Bitcoin in large quantities is through online exchanges such as Binance, Kucoin, and others.
Simply transfer your bank account’s funds to your newly created cryptocurrency exchange account. Please note that due to KYC and AML requirements, the registration procedure will take several days.
You can easily pay without a bank account for Cryptocurrencies to be sent to your wallet. This is possible by paying a trusted individual, who would then transfer the Cryptocurrencies to you via the provided channel and wallet address.
Transferring Coins To Your Personal Wallet
The investment and participation in the token sale is the primary motivation for moving your coins to a wallet over which you have complete control.
The most preferred rule is to never send funds from an exchange wallet, as you won’t have access to the new token with the vast majority of online wallets unless the exchange you’re using provides the maximum opportunity to participate in ICO buying using your online wallet.
This means that if you use an online wallet to participate in an ICO, you will be required to send funds to the ICO address, but you will be unable to receive the tokens you purchase, which is the same as losing your investment.
If this occurs, you have the option to contact your online exchange’s technical support and attempt to resolve the issue. Please keep in mind that the majority of these exchanges consist of requests, so choose wisely and apply common sense.
Creating A Brand-New Wallet
In this context, token sales occur exclusively on the Ethereum network. Therefore, in order to participate in the token sale, you must possess an Ethereum wallet. Not all wallets are appropriate for ICOs. MetaMask and MyEtherWallet are the most widely accepted wallets on the Ethereum Network.
MetaMask is a browser extension for the Google Chrome web browser. It is a lightweight browser for Ethereum dApps and not a wallet. It serves dual purposes.
MyEtherWallet is additionally a client-side wallet that does not store your private keys. Only Ledger Nano S and Trezor hardware wallets are compatible.
Depending on the startup and ICO, one of these wallets might be recommended for participation and investment. If the startup or company hasn’t specified a wallet for the ICO, we recommend using MetaMask.
MetaMask is already a desktop wallet, so storing large amounts of cryptocurrency in it is not advised. After purchase, the funds should be transferred to a more secure location, like a hardware wallet or paper wallet.
4. Buying ICO Tokens
Before proceeding, please read the general terms of the ICO and the token purchase agreement to avoid falling into an unknown pit.
The majority of startups conducting ICOs provide a step-by-step guide for token sale participation and investment, as well as evidence for each step. Make reading of these agreements mandatory.
Please ensure you follow or read updates regarding the listing of coins. Follow this topic’s accounts on social media, particularly Twitter.
All ICOs begin at a predetermined time or block number that has been determined beforehand. Notably, despite the fact that you can use an Ethereum block explorer to determine how the block numbers translate to your local time, some ICOs end in a matter of minutes.
When the token sale commences, you may be required to send ETH to the address specified by the ICO’s administration team. Additionally, you must set a MetaMask-controlled gas limit. After sending the transaction, the following outcomes are possible:
You receive tokens immediately following the conclusion of the token sale.
A few days must pass before your tokens arrive.
Your tokens must be redeemed manually (look at eos.io)
In some cases, hackers have manipulated ICO websites by substituting their own ETH address for the real one. This indicates that investors’ funds sent to the ICO wallet address listed on the ICO website were compromised, and the hackers instead received the funds.
5. Safeguard Your Token
After receiving tokens at your MetaMask, MyEtherWallet, or Parity address, you must transfer them to a safer wallet. You will require a small amount of additional ETH in your wallets to cover the transaction fees associated with transferring funds between wallets. This will change when Ethereum updates to Metropolis, but you must keep it in mind for now.
What specifically is IDO?
Initial Dex Offering, or IDO for short, is a new model of fundraising that improves the liquidity of a variety of crypto assets and facilitates faster, more open, and more equitable trading. The IDO model outperforms other fundraising models, including ICO and STO.
The IDO coin is issued via a decentralized liquidity exchange. This is an innovative method of crowdfunding that allows only crypto projects to launch their native token or coin. A “win-win” situation exists due to the fact that Crypto projects can raise funds through liquidity pools without intermediaries, and investors can profit from instant token trading, which is essential.
BENEFITS OF IDO
1. Excellent and Rapid Liquidity
Appropriately, it allows unrestricted trading with immediate liquidity, which sometimes permits smaller price fluctuations.
2. Equal Launch
It also allows almost anyone to invest, making the project appealing not only to the project’s owner but also to investors.
3. Simple Solutions
Problems are easily resolved without chaos, allowing simple solutions to flourish when they do occur.
4. Engagement With Investors
It assists the project in attracting investors while restricting initial investors to a whitelisted group. To be on the whitelist for the project, you must post or share on social media.
HOW TO PURCHASE IDO
In today’s Digital world, there are numerous platforms that deal with IDO, and each of them has a unique method for participating and investing in and with them. Here’s how to do so on the well-known platform POLKASTARTER.
Only two investment options are available for the Polkastarter Project. Either The Project Community Route or The Polkastarter Token Route must be followed. It is only concerned with its renowned token, POLS.
Numerous investors have essentially devised a variety of ways and means to invest in this project using POLS. Among the various methods:
Holding POLS for at least one week in your wallet
Moreover, you can hold POLS liquidity provider tokens on Uniswap or PancakeSwap for a minimum of seven days.
Invest in the POLS dashboard in particular. Ensure that whitelist eligibility is granted instantly, but lock your tokens for seven days.
By completing these tasks, you will be eligible to enter Polkastarter’s whitelist lucky draw, and if your wallet address is chosen, you will be permitted to participate in and invest in the IDO project.
Typically, for the Project Community Route, a project engages its community via its own means in order to select its most devoted followers for the whitelist. This path varies by project, and the whitelist will be closed once the project announces its listing on Polkastarter.
Once you have your whitelist, you must complete the Know-Your-Customer (KYC) procedure to ensure that no bots were registered during the registration process and to ensure regulatory compliance.
What is IEO in detail?
Initial Exchange offering (IEO) is the abbreviation for Initial Exchange offering. Clearly, it is a substitute for ICO.
It is a form of ICO that is more secure and raises capital for legitimate startups. CEOs, project controllers, and owners offer new cryptocurrencies or tokens to investors through the Crypto exchanges, which serve as an intermediary. Investors can profit from an increase in token value if the project is ultimately successful.
BENEFITS OF IEO
It increases investors’ confidence and trust as a result of its secure exchange.
Furthermore, it operates without any conflicts.
It offers investors unique market support.
It is more organized and straightforward.
HOW TO Make an Investment in Initial Coin Offerings
IEO (Initial Exchange Offering) is also considered to be much safer than ICO (Initial Coin Offering); however, you must consider a number of important factors before investing in IEO.
These are they:
1. Adequate RESEARCH
Despite the fact that many exchanges have strict, non-negotiable rules, you should still conduct research prior to investing.
Not only should this type of research be conducted on the IEO, but also on the exchange.
This is not because we do not want you to invest in certain IEOs, but because many exchanges and startups create misleading marketing materials. Consequently, your research must be exhaustive. Do not rush.
Determine what has been accomplished and where the project is headed.
To understand the current status of their projects, you may need to visit their website. The requirement for a whitepaper is based on the fact that it contains all pertinent information.
In addition, they must describe the project’s objectives, the amount of funding required, and the employed technology. If they have not made these products. There is something fishy about this circumstance.
Locate the exchanges that trade IEO.
IEOs are regularly listed on multiple cryptocurrency exchanges. Find the ones that pique your interest and fulfill your needs.
Register on the Exchange(s) after locating them; you will never be considered if you are not registered.
Additionally, please review the registration procedures of the exchanges, as the requirements for various platforms vary. Prior to registering on the exchange platform, you must complete the KYC/AML procedure, as stated previously in the ICO investment process.
Because registering procedures can be so time-consuming, it is always recommended to register days prior to the project’s completion.
4. Become acquainted with accepted currencies
Before you can be deemed credible for IEO investment, you must be familiar with the Currencies they support.
The majority of Initial Coin Offerings (ICOs) support Bitcoin (BTC) and Ethereum (ETH) (ETH). Some businesses accept fiat currencies, including the United States Dollar (USD), the British Pound (GBP), and the Euro.
5. Pay close attention to the token circulation.
You essentially have the right to know how IEO tokens are distributed as an investor. You must identify the percentage of tokens assigned to token issuers and the percentage of tokens allocated to investors.
If token issuers receive most of the funds, this is not a good sign.
Sites of citation:
www.investopedia.com
www.blockchainhub.com
www.phemex.com
www.fundico.com
