How to participate in a token sale

Token sales combine the best concepts of traditional business models and ICOs. This market has rapidly grown in recent months with the first quarter of 2018 raising $14.2 billion compared to only $9 billion which was raised in all of 2017. The biggest token sales are getting bigger with Petro, EOS and telegram leading the way.

With ICOs gaining popularity to become the new IPOs or next generation crowdfunding, you do not want to be left behind. So, how do you participate in a token sale?

Register with a Cryptocurrency Exchange

cryptocurrency exchange

Since you cannot participate in a token sale with flat currency, it is necessary to register with a major cryptocurrency exchange like Bitcoin or Ether. Since you do not own cryptocurrencies yet, all you do is transfer money from your bank account to your newly created account with cryptocurrency exchange.

This can be done through online exchanges, Blockchain-based banks like Bank52, an ATM or making a local purchase from people. This process usually takes a few days because of strict AML and KYC regulations.

Exchange the money for the cryptocurrency that you want to buy

With money already deposited in your cryptocurrency exchange account, the next step is to exchange it for the cryptocurrency that you want to buy whether Bitcoin, Ether, Litecoin, Dashcoin or any other. This will take a few second to minutes whereby your cryptocurrencies are sent to an online wallet of the exchange that you registered with.

Transfer your cryptocurrency to an online wallet under your control

It is important to avoid leaving your coins in exchange wallet but rather transfer them to an online wallet that is under your control. This is to secure them since online exchanges are vulnerable to attacks and it also gives you access to new tokens with most online wallets.

Make your wallet compatible with Ethereum wallets

Ethereum wallets

Since most sales happen on the Ethereum network, you will need an Ethereum compatible wallet to participate in a token sale. This can be either MetaMask, MyEtherWallet, Mist, Parity, im Token, Trust, Cipher and so on.

When participating in a token sale, avoid incompatible wallets like any Bitcoin or Ethereum exchange, Jaxx, Exodus, coinbase, Bitrex and the like. It is good to also backup your wallet and move your funds to a more secure wallet after participating in an ICO.

Buy ICO tokens

Before you buy token sales, it is important to first go through the terms of the ICO, the purchase agreement and the step-by-step guides for the token sale participation. Note that ICOs start at certain times or a specified block number that translates into your specific real time and some they can last for a very short time.

When the token sale starts, you send your ETH to the specified ICO address with the following details:

  •         Address.
  •         Transaction data which is your personal reference number.
  •        Gas limit.
  •         The amount of ethers you wish to send.

While buying your tokens, avoid errors such as setting the incorrect gas limit, not setting the correct data field and sending the transaction too early.

Ensure that your tokens are safe

When you receive your tokens, you need to transfer them to a more secure wallet.

Many ICOs are now working with an institutionalized mind-set and this means that a new dawn has come for the world of ICOs and cryptocurrency in general.

Participating in a token sale is as simple as buying ethers in a cryptocurrency exchange, transferring them to a compatible wallet and finally sending the deposit to a token sale address with the correct data and gas limit.

 

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