Here is a generic step by step guide
Who can participate in an ICO?
You don’t need much to invest in an ICO. Essentially, the starter pack includes active Internet access and some Bitcoins or Ether. The Blockchain technology allows for investments to flow from virtually anywhere in the world, with minuscule fees and usually within several minutes.
But, and this is a very important “but,” make sure that it’s legal in your jurisdiction. ICOs are probably the one aspect of cryptocurrencies that authorities all over the world are striving to regulate the most. ICOs are explicitly banned in some countries, such as China and South Korea, while others have either introduced certain regulations or are about to do so. For instance, regulatory bodies in Russia are strongly considering introducing hard caps for both the overall amount of money that a project can receive through an ICO as well as the amount that an individual can invest.
1. Register for an ICO through the project’s website
Every legitimate project that sources funds through an ICO has a website, where they specify what the project is all about, its goals, the amount of money needed, how long the funding campaign will go on for and so forth. The web site requires you to have registered to obtain access, you now need to Register your Interest in the ICO by completing the Register your Interest form.
2. Get Bitcoin or Ether
Bitcoin, still being the single most dominant cryptocurrency, is accepted pretty much anywhere in the crypto world. However, as Ethereum offers a stable and convenient Blockchain platform for developers to set up their projects, it became a platform of choice for ICOs. So, Ether, being the native token of the Ethereum platform, is widely used for purchasing tokens during ICOs.
The minimal amount that you can invest depends on a particular ICO. It can be anywhere between $10 to $100, or 0.02 ETH to 1 ETH. The minimal investment amount is usually stated in the project’s whitepaper.
3. Move your Bitcoins or Ether to a wallet you control
We have said this countless times already: refrain from keeping your cryptocurrency in a wallet provided to you by an exchange. It jeopardizes the security of your funds, as you are essentially not in control of that wallet. Instead, move your tokens to a software wallet that keeps your passwords on the device of your choice. Alternatively, you can invest in a hardware wallet for added security.
4. Buy ICO tokens
Once you’re registered for an ICO and have your funds available and ready, all you need to do is send your cryptocurrency to the campaign’s address.
5. Participate in an ICO by sending your crypto to their address
The primary goal of every single ICO campaign out there is to get your money. For that reason, they do try to make the process as trivial as possible. Most of the time, the project’s website will provide you with thorough guidelines on how to invest.
But, you have to be extremely careful when sending your funds.
First of all, check the website’s address as many times as you feel is necessary. There might be fake ICO websites listed as ads on top of your Google search results. Those will look identical to actual websites, with one or two symbols of the address being slightly different.
Secondly, check the project’s wallet address as many times as you can. There will be fraudsters and phishers posting fake addresses online, so you need to be extremely careful not to end up sending your money to a wrong place. If that happens, you will never be able to get it back.
Some of the most popular and attractive ICOs will have thousands and thousands of people sending Ether all at the same time, which may result in the network being ongested, which means that your transaction might take a while to go through.
Finally, make sure to include a little bit of extra Ether into your transaction. This extra Ether will go on “gas,” which enables transactions within the Ethereum network. Basically, in this particular case gas serves as a transaction fee. The required amount of gas is usually laid out on the project’s website.
6. You get ICO tokens to your address
You should receive your newly purchased tokens to your wallet’s address. If this doesn’t happen straight away- don’t worry and be patient. Depending on a particular campaign, your tokens can arrive immediately, but sometimes it might take weeks, or even longer. Moreover, during a busy ICO, a lot of things can get delayed, some deadlines can be moved and so on. So, make sure to stay up-to-date and consider communicating with other investors on dedicated platforms and forums.
Sometimes, when you receive the tokens, you might not be able to trade them straight away. This depends on rules of a particular ICO. This information, as well as the time you’ll need to wait before receiving the tokens, is usually laid out on the project’s website.
7. Once you have your ICO tokens, figure out how to store them
Again, always make sure your funds are safe and secure.
Most major ICOs will take the necessary steps for their token to be supported by major wallet services, especially by Ethereum’s official wallet service MyEtherWallet.
If you’re using a hardware wallet, any ERC20 token can be transferred to the device and managed through MyEtherWallet. Moreover, the hardware wallet manufacturers constantly update their lists of supported cryptocurrencies. If the token you invested in is getting that support, all you need to do is download and install the latest version of the official manufacturers’ firmware.
To take advantage of the benefits of participating in the Pre-Sale rounds, you just need visit the Token Store.