The token generation event, also known as initial coin offering (ICO), is one of the most sensational applications in the crypto space. However, many first-time token buyers get confused about participating in the innovative crowd sales. If you are also willing to taken part in an ICO, but don’t know where to start, then here is a step-by-step guide for you.
Obtain A Cryptocurrency
Most of the token generation events accept contributions in the form of cryptocurrency. So the first step is to identify what type of cryptocurrency the token sale accepts. Second step is to obtain some cryptocurrency. However, many crowdsales accept Ether.
Some token buyers purchase Ether & Bitcoin from a trustworthy crypto exchange in order to participate in the token sale. Bitbns is a popular exchange, which is beginning to roll out instant purchases for Indian customers.
Move Funds to a Personal Wallet
The technical structure of token generation events and ICOs do not allow buyers to participate in the token sale directly from an exchange wallet. So, it is crucial to transfer your bitcoin or ether to a personal wallet. When you have the private keys to control your funds from your wallet, you can transfer them to the token generation event contract address. If in case, you try to transfer funds directly from an exchange, you might lose them and will not be able to recover them back.
Transfer Funds to ICO Smart Contract Address
Like a personal wallet has a specific address, a Smart Contract, which governs the token sale, also has a specific address. You should transfer funds to the correct contract address, otherwise you might lose money. This is where ICOs or token generation events are considered to be security vulnerable. Therefore, you must be vigilant enough to avoid falling prey to any scams. For instance, if you receive a contract address, which is sent through email or social media or even if it appears to be sent directly from organizer, you must not send the funds and should always double check.
In most of the cases, the crypto tokens that buyers purchase during any TGEs are sent directly to the address from which they are contributed. So, you can continue to store them in a web wallet, but if you have large balances to manage, then you can always go for hardware wallets like Ledger Nano S, Trezor and KeepKey to name a few. This is a secure way to hold the tokens while still having access to them for making a transfer.
Whether you are a start-up company or you have a flourished business that aspires to make profits out of token generation events, you must ensure that you are not investing money in a scam.