How Does An ICO Work

The ICO hype has completely erupted in cryptoland. With an ICO you have the opportunity to be the first to buy a new crypto coin. Usually you can sell it for a higher price within a week. In an Initial Coin Offering (ICO), a company does not issue shares but tokens for obtaining capital. It is a new, popular way of fundraising that involves millions. Even renowned venture capitalists are now forced to join ICOs to get a piece of a start-up (related to the blockchain).rnWe explain in a few simple steps how you can also benefit from the ICO boom. Find an ICO There are number of sites where you can find upcoming ICOs. Here you will find basic statistics, start date and sometimes a review. https://icotracker.net/rnhttps://www.icoalert.com/rnhttps://www.coinschedule.com/rnhttps://icorating.com/rnhttps://icobench.com/ TIP: Follow the site of https://icoup.io. This website is known as the ICO expert. They have the status to create hypes. On this site you can share a free spreadsheet with ICOs that he has provided with a rating. Analyze the ICO As with any crypto investment, you should do your research well before you put your money into it. This is even more the case with ICOs. Most projects do not have a working product, let alone a beta version. They are mostly white papers that provide beautiful views. Whether they ever come out remains to be seen. TIP: Read the book Zero to One by Peter Thiel or simply subscribe the Youtube channel of ICOup. This will give you a lot of knowledge about technology but also how to assess ideas and companies. Register for an ICO After you have decided to invest in an ICO, you have to register. You go through the registration process on the website of an ICO. Always try to participate in the pre-sale, this will give you a lot of bonus boxes. There is often a high deposit amount (at least $ 25K). With reliable trading services, you can find a pool to make a pre-sale application together with other (small) investors. TIP: Because of the Know Your Customer (KYC) rules you have to provide a scan of your passport. Put on this image a "watermark" with the name of the ICO. If your passport falls into the wrong hands, then at least they do not have a flawless copy of it. Participate in an ICO When your registration is accepted you can participate in the ICO. You will receive a message from the organization about the procedure and date. It is advisable to transfer your investment from the first second on the day of the ICO. Some ICOs are already sold out within an hour.rnTIP: When you pay in Ethers, set your gas price a bit higher than prescribed. The higher your gas price, the sooner your transaction is carried out. Receive your ICO tokens You will receive your new crypto coins a few days after the closing of the ICO. These will be transferred to the wallet you specified. The type of wallet is determined by which blockchain the ICO took place. Please read the instructions about this with your application. In any case, NEVER use a wallet address of an exchange! TIP: Most ICOs find places on the Ethereum chain. This means that you receive ERC20 tokens. You can receive this on a MyEtherWallet. Make it than a wallet to. Sell ​​your ICO coins As an investor, you will probably want to hold your purchased crypto coins for a long time. However, the traders among us try (preferably directly) to sell their coins with a big profit. Especially with hyped coins this is easy to do. To sell your coins you must send them to the exchange(s) on which they are traded. Due to contractual reasons, a crypto project can only announce which exchange they have entered into after the distribution of the tokens.