Are you looking to buy crypto ICO tokens but don’t know enough about them? You’ve come to the right place. We’ve put together this step-by-step guide just for beginners on how to buy ICO tokens that even your grandma would understand! Don’t go buying tokens without reading it first.
Step 1: Do Your Research on ICOs
We can’t recommend this step enough as often it’s the failure of doing proper research that lands many investors in hot water. Sadly, the investors end up losing out instead of making gains. This step applies to any investment you make ( real estate, stocks, shares, etc) not just cryptocurrency. So, to avoid this we strongly recommend the following:
- Read, listen and study everything you can on the subject
- Speak to other investors and people that are in the know
- Know the risk involved and be willing to accept it
- Don’t invest more money than you can afford (Golden Rule of Investing)
Pro Tip: Failure to follow these can result in a loss of investment.
Step 2: Register for the ICO through its website
Every blockchain project that wants to raise funds through an ICO must have a website. Properly examine its website to see how credible and authentic it is. A project’s website should be well designed and cover important information like:
- How much money they need to raise
- How long the crowdfunding campaign will go for
- What the project is all about
- The goals of the crypto ICO
- The registration process to participate in the ICO
Pro Tip – If the above information isn’t covered at all, or what is covered is raising a red flag with you in the way it’s presented, trust your gut and stay away.
Step 3: Buy Bitcoin or Ether
In order to buy an ICO token, you first must buy one of the two main cryptocurrencies: Bitcoin or Ether. Bitcoin BTC is generally accepted everywhere in the crypto world. But Ether is also widely accepted and used to buy ICO tokens. Keep in mind the following:
- Every ICO has a minimum amount that you must invest ( don’t part with more than your willing to invest)
- The top tokens which can be found on any crypto ICO list have the minimum amount stated in the project’s whitepaper.
- You must use one of the major crypto exchanges to purchase bitcoin or Ethereum if you don’t own BTC or ETH.
Step 4: Move your BTC or Ether to a Secure Wallet
For security reasons, It’s not recommended to keep your coins in a wallet that’s provided by the crypto exchange. Rather it’s best to transfer your coins to a secure and compatible wallet to keep your funds more secure. Alternatively, transfer your coins to a multi-signature wallet, which is considered to be the safest method to store your cryptocurrency.
Step 5: Buy Your Project’s Crypto ICO
Once you’ve got your Bitcoin or Ether available you are now ready to send the amount you wish to buy your project’s crypto ICO. The wallet address you have to transfer your funds will be provided once you register on the project’s website.
Step 6: Send your Bitcoin or Ether to the Project’s ICO Address
Before sending funds to the ICO deposit address always double-check to see that you have indeed the right address. The wrong address will result in the loss of your funds.
Once the funds have been received, you’ll get your ICO tokens to your deposit private key address. Your ICOs can be deposited immediately, but keep in mind that transactions can sometimes be delayed.
Step 7: Ensure your ICO tokens are safe and secure
Once you’ve got your ICO tokens, ensure you store your tokens in a safe and secure wallet. Once the funds raising campaign finishes, the tokens will eventually be listed on a cryptocurrency exchange. Here you can usually trade them against Bitcoin or Ethereum.
Take all these steps to buy ICO tokens
By using all the steps outlined here in our beginner’s guide, you have a much higher chance of buying ICO tokens in a way that is safe and right for your circumstances and lifestyle. For more information on ICO tokens and cryptocurrency, contact our team at XYXYX.