How to Participate in ICOs
To engage in an ICO, follow the steps below:
- Stay up to date. Find out their Slack group, Twitter handle and official website. Keep up with their ICO announcements and plans.
2 ) Prepare a wallet.
3 ) Do not use an exchange wallet as the address of an exchange wallet may change without you noticing. Some hardware wallets are not capability-wise ready for ICO tokens. This leaves making a wallet on myetherwallet.com as the best option. Ensure that the wallet has the necessary amount to transfer, including the gas price. For example, if you wish to transfer 10 ETH for the ICO tokens, make sure you have more than 10 ETH inside your wallet to pay the gas fee. Oversights like these are common and will result in failure of purchase.
4 ) Be on time. Some popular ICOs are over in an hour. To increase your chances of securing ICO tokens, do prepare and make the transfers as early as possible.
5 ) Safekeep your tokens. Keep your wallet safe. Once the token is listed and available on exchanges, you may transfer your tokens from the wallet to an exchange to start trading.
In choosing the right ICO to invest in, ask yourself the following questions:
1 ) Are my investments safe?
- Preservation of capital should be the priority of the investor. Can you trust the dev team with your money?
- Are you leaving your money with founders who were involved in scams?
- Is there a long-term plan? Do they have the abilities and the team makeup that the project demands?
- Is this just a well-marketed project? Sometimes all it takes is a professional looking website for inexperienced investors to be sold. Will the team be able to deliver its promises?
- What is my exit plan? As a high-risk investment, ICOs may require you to define an investment horizon or timeline. At which price point do you intend to exit?
- Does it hold a unique advantage?
- As the Dapp scene matures, newcomers with similar value propositions will join the market. What is the edge that this Dapp would have over future competitors?
As it stands, the current ICO scene is massively hyped.
To protect yourself from capital losses, perform the necessary research and pick your ICO with care.