It’s been almost a decade since we started hearing about the introduction of Cryptocurrencies in the digital market. No doubt it’s a technological wonder and as the passed millions of people invested in it and became rich. As we all know, there are number of different methods for investing and exchanging cryptocurrencies, we must have idea on where we are going to invest, how the market will perform, precautions and level of risks just similar to the stock exchange.
ICO has given the crypto world new opportunities and many of us are interested but don’t know the proper outline. In this article we will be discussing about investment and precautions that must be taken before investing in the ICO. You must have a deep insight about the product or company that is behind the ICO and how its performing in the market.
Many of you will be wondering how to use Ethereum to invest in an ICO. The process will be explained in the following easy steps:
1. Create your Ethereum Wallet.
As most of the ICO’s are based on Ethereum, first of all we must have an Ethereum wallet. There are number of apps or software that that provide the feature and have their own advantages and shortcomings. Some of the best Ethereum wallets are
The most flexible way is to create wallet with “MyEtherWallet” as it can be easily used for ICO.
In the following steps all the necessary steps will be shown on how to invest in ICO using My Ethereum wallet. Visit www.myetherwallet.com
On home page we can see the option of creating new wallet. Remember the password you should provide here must me strong as the website does not take any responsibility if you are scammed or forget your password. Afterwards you will have to download your “KeyStore file” which is more than confidential. It must be saved in a secure place, most recommended method is to save it in external hard drive or usb key and leave them unplugged.
In the next step, we will be shown a “Private key” which is a mixture of strings and arrays. It must be written down in a secret or confidential paper and must not be lost or shared with anyone. It is used for accessing your wallet and in case it is lost, then no option is given to recover it.
Accessing your wallet.
There are many options of accessing your wallet:
- Use your private key.
- KeyStore file.
- Digital Bit box.
- Mnemonic Phrase
The most authentic and secure method is to use your private key. Also, using KeyStore can be good.
After authentication, you will have access to your wallet.
Step 2: Buying your Ether.
After you have created your wallet, next step will be to buy Ethereum to fill your wallet. This can be done by a number of methods. The most common method is to use exchanges like Coinbase, Cex.io, Coinmama, etc. From some of these you can buy Ethereum directly with common currency (fiat) like dollar, euros, etc. Get more detail on how to buy eth HERE.
Step 3: Send your Ethers to ICO.
If you are interested to invest in an ICO of your choice, first you have to visit their website. On the website you will find all the information regarding exchange rates, etc. If you agree with all of their terms, conditions and rates, then you will be given an address where to send your Ethereum.
For this you have to open your wallet and “click” on “send or receive tokens”
- Enter the address from the official ICO website (never put an address received from direct messaging, forums or any other website than the official one).
- You will have to enter the amount you want to send (Ethereum).
- Gas limit.
Gas limit is a certain ratio or amount to for the smooth procession of your transaction, and if the gas limit is low, your transaction may be failed. So, it is recommended that to keep an eye on the gas limit and the best settings for Gas are from 50 to 60 Gwei.
After all is set, you just have to generate and send the transaction.
Afterwards, all you have to do is to add custom token, by opening your wallet and add the information required provided by your ICO team (if you can’t find it, contact the support of the ICO). You should then see your token balances on your wallet. Some tokens are released as soon as you buy in the ICO, others will be released only when the ICO ends. Make sure to get this information from the team or in the whitepaper of the ICO.