How To Make Money With ICO Tokens
If you are interested in cryptocurrencies, did you ever ask yourself “how to make money with ICO tokens?” An ICO is an Initial Coin Offering and over the last couple of years there has been a frenzy in the cryptocurrency market. People believe that investing in crypto is a sure way to easy and large profits. Of course, the reality is very different.
The number of cryptocurrencies has more than doubled over the last few years. You can usually find about 5 new crypto coins emerging daily. As an investor in crypto, the choice is overwhelming. With so many ICOs available it can be tough to decide which to go for.
The people behind some of these ICOs are calling their coins unusual names to try to attract the attention of investors. It has even turned political. There is a coin called “Trumpcoin” and one called “Putincoin”. These coins are raising money. Even the ludicrously named “Useless Ethereum Token” is doing well.
So, how do you purchase ICO tokens and what do you do with them afterwards? We have made the process as simple as possible for you below.
Register at the ICO Website
All legitimate ICOs will have their own website. Here they will explain the aims of their project, how much they want to raise, the goals of the ICO, when the ICO closes and more. If you are interested in the ICO then you are required to register.
Get Ethereum or Bitcoin for the ICO
This may seem strange, but you are probably going to require to have either Ethereum or Bitcoin to purchase ICO tokens. You can use a currency exchange service if you do not hold any of these coins. Both Ethereum and Bitcoin are accepted almost everywhere for ICOs.
Check the minimum investment amount on the ICO website. This can be between $10 and $100 typically. You will need to have this amount available in either Ethereum or Bitcoin to invest, as the majority of ICO websites will not accept fiat currency.
Purchasing your ICO Tokens
You will need your Ethereum or Bitcoin available in a Crypto wallet to purchase ICO tokens. In order to make your purchase, you will need to send your Ethereum or Bitcoin to the specified address of the ICO campaign.
Be careful of scams here. Check the website address of the ICO very carefully. Unfortunately, there are a lot of ICO scams going on right now. The people behind these will use pay per click (PPC) ads which appear at the top of the search results. Then they create fake ICO website domains and run off with your money.
Another security measure you need to take is to check the crypto wallet address provided by the ICO. There have been several cases of fake wallet addresses used, and investors have never seen their money again afterwards.
When an ICO is really popular it can take a while for the investment transaction to take place. This is because the underpinning blockchain network is congested. If you use Ethereum for purchasing your ICO tokens you can track the progress of any transaction right here.
Savvy investors are now including a little more with their investments. The additional funds will end up in “gas” which is part of the Ethereum network. You need this extra gas to settle any transaction fees that apply. Details are available on the ICO website.
Your ICO Tokens appear in your Crypto Wallet
Once your ICO investment is successfully completed, the associated ICO tokens will appear in your crypto wallet. It may take a while for the tokens to appear due to congestion, so do not overly concern yourself about this. There can be other factors which delay you receiving your ICO tokens as well. It can actually take weeks or even months to see your tokens.
It may not be possible for you to trade your ICO tokens immediately. You will need to check the ICO rules to see if this is possible or not. The best ICO websites have all of this information available. They will tell you how long you need to wait for your tokens to arrive in your wallet and the rules that apply to trading the tokens.
How to Make Money with ICO Tokens
After you receive your ICO tokens then there are 2 options available for you to make money with them:
- Keep them and get dividends
- Sell them
There have been quite a few profitable ICOs in the past so you may decide to hold your tokens for a while and receive dividends as the value of the coin rises. It is possible to get a token bonus when you are an early investor in an ICO.
If you want to sell your ICO tokens then you need to wait until one of the cryptocurrency exchanges lists the coin. You need to be aware that some coins are never listed. You will need to lay a waiting game even if you want to sell your ICO tokens.
You now know how to make money with ICO tokens. There are ICO scams out there so make sure that you check everything is legit before investing. Once you have your ICO tokens you usually have the choice of holding them or trading them for a profit.