The past few years have seen unprecedented growth in the cryptocurrency markets. Bitcoin’s introduction to the world in 2009 brought forth many developments in digital currency and the way industries work today. Due to crypto’s growing popularity and its different emerging currencies, the UK government has even set up a task force to regulate how digital assets are traded and used.
With the ongoing innovations in the crypto world, developments such as Initial Coin Offerings (ICOs) have opened up new possibilities in the financial markets.
People willing to invest have a wide range of ICOs to choose from, with startups raising funds for important and useful projects. A type of ICO called the security token acts as an investment contract that allows investors to earn ownership of the issuing company. Delving into the world of cryptocurrency can be daunting, especially when you don’t know how to buy security tokens. Here’s a guide to walk you through the basics of purchasing ICO tokens.
1. Register for an ICO through the project’s website
Every legitimate start-up that sources through an ICO has a website where they specify the details of the project — their goals, the amount of money needed, and the period of the funding campaign. The website is also where you usually register for the ICO. Coin offerings that don’t require registration may be unreliable, as you need to have some proof of evidence that you registered in their ICO with your name.
2.Purchase cryptocurrency (Bitcoin or Ether)
You will need one of the two leading cryptocurrencies to participate in an ICO. Bitcoin is still the dominant digital currency and it’s accepted anywhere in the crypto space. Ethereum also offers a secure and accessible Blockchain platform for start-ups to develop their projects. Both cryptocurrencies are widely used for purchasing tokens during ICOs and you can invest anywhere between €10 to €100. The minimal amount is commonly mentioned on the website, so it would be best to check before buying the tokens.
3. Move your money to a user-controlled wallet
Before receiving the token that ICO is selling, you need to send the money from a wallet where you have control over the private key. After purchasing digital currency, move the money to a user-controlled wallet so that you don’t jeopardise the security of your funds.
4. Send your crypto to the ICO’s address
The major goal of every ICO campaign is to get funding from your money. Start-ups make the process convenient and therefore easy for investors to transfer their assets. Usually, the project’s website provides guidelines on how to invest and finance their growth. The guidelines may include instructions on how to pay for the tokens that they’re offering and links to their payment tabs.
5. Wait for the delivery of your ICO tokens
You will receive your purchased security tokens at your wallet’s address. Depending on the start-up and the project, your tokens may arrive instantly or you’ll have to wait for a few days or even weeks. During an ICO, delays occur so update yourself on their developments by communicating with other investors or contacting the issuing company from time to time.
For those who want to enter the crypto market, you don’t need much to invest in an ICO. For starters, the essentials consist of Internet access and some Bitcoins or Ether. Once you’re ready to take the plunge, you’ll find that the cryptocurrency sphere is a world valuable not only to company founders but also to investors who want to gain profits and digital assets.