At present, there are more than 100 ICOs running and upcoming. Not all of them are good. The truth is only 10 percent ICOs seems to be legit. The current crackdown in China was due to an increase in a large number of ICOs in China. As a result, they had to call for a ban to safeguard the hard earned money of the Chinese citizens.
ICO Stat: In the year 2017, till date, 154 ICOs were organized and combinedly raised 2.3 billion USD as per CoinSchedule.
So, which one to go with? How to choose the right ICO? Where should you be putting your money? What is whitelisting? There any many questions for this entirely new venture that you may be wondering. Here are some guidelines I drafted, which, according to me, should be beneficial to you.
- 1 Interested in ICO? Here's what you need to do
- 2 Things you need to keep in mind before participating in any ICO
- 3 Telegram, Slack Channels, and ICOs
- 4 ICO Day Tips: Avoid these mistakes
- 5 ICO and Bonus- Should you jump into any ICO which gives huge Bonus?
- 6 Google Calendar - An awesome tool to keep yourself updated with ICOs and important events
- 7 ICO Dilemma: To Hold or to Sell?
- 8 Missed a solid ICO - What should you do now?
- 9 Which are some of the websites to follow to keep yourself updated for ICOs?
- 10 ICO - Should you Invest?
Interested in ICO? Here's what you need to do
First and foremost- Make a list of ongoing, upcoming complete list of the ICOs you intend to invest in and Whitelist yourself immediately. It is practically unviable to whitelist all ongoing/upcoming 100 ICOs. Join cryptocurrency, ICO community on Facebook and Telegram.
From these channels, you will be exposed to different ICOs, which are in talk/news. Whitelist them even if you don’t know much about them and possibly you may not buy. However, you will have ample time to study before actually putting money. You may change your opinion after research.
Okay, let me first explain what Whitelisting is. Through Whitelisting, companies restrict individuals to participate in their ICOs. It is just a process to organize the ICO in a proper and organized way.
Every company has their own way of Whitelisting.
The easiest way to whitelist yourself is to register your email address on their website. No big deal. It is very simple. Some ICOs require you to join their Slack channel get whitelisted. For e.g. Request Network.
As whitelisting process differs with different ICOS, it is always advisable to follow their official website and Telegram channel to keep yourself updated and informed. We also discuss ICOs in our Bharatafinance Facebook group.
Things you need to keep in mind before participating in any ICO
Nowadays most of the ICOs are on Ethereum platform. So always keep some Ethereums handy in MEW (My Ether Wallet). Whenever Ethereum price is lower, buy it and keep it in MEW for further use. Even if you don’t use it for ICO, Ethereum itself is very strong currency to hold. It is applied to NEO as well. In future, many good ICOs will come on NEO platform. Keeping NEO in Neon wallet will give you GAS which is an added advantage. To read more about NEO and Gas, click here.
Telegram, Slack Channels, and ICOs
After sorting out and whitelisting your tentative ICOs, the second thing you need to do is to join their Telegram channel and follow them on Twitter. Both joining you should do from their official website and not from any other link.
Don’t join Slack because a lot of scams is happening through Slack. On both these channels, you will get all the latest updates instantly. You will not be needed to ask in any forum as the information you read there may not be authentic. From their update, you can take prompt action for whitelisting, registration, early buying, presale date, ICO date etc. For e.g. now I feel Storm ICO is promising. Whitelisting is still not open. Presale date, crowdsale date nothing is confirmed. So I follow them on Twitter and Telegram channel for any update. By following them there, I ensure that I do not miss any important update. Remember, missing a good ICO means missing a fortune. You will never get that price in lifetime for a solid project.
To give you an idea, the ICO price for NEO coins was 30 cents. And now it is trading at 35 USD. Need I say more?
ICO Day Tips: Avoid these mistakes
In case of ERC tokens, clearly, follow the company's instructions regarding the Gas price and Gas limit. Default Gas price is 21 Gwei and the Gas limit is 21000. We have to increase both price and limit as per their instructions. Trade may not activate in case you forget to increase your Gas/GWEI limits to the recommended number. Transaction will be rejected if you enter more than what is recommended.
ICO and Bonus- Should you jump into any ICO which gives huge Bonus?
Do not buy any ICO which gives more than 30% bonus. Remember, good ICOs don’t offer a big discount because they believe in their project and anticipate full subscription before the finish date. Most of the good ICOs gets fully subscribed in a day or two. Some, even in few hours!! Waves can be an exception, where they gave a big discount in the past and were still successful. But, that is history. Then, ICOs were not that popular. Today, ICOs have become a hot topic and there are so many ICOs on the floor with huge competition to grab investor’s attention by offering lucrative deals. Do not fall for the trap!!
Google Calendar - An awesome tool to keep yourself updated with ICOs and important events
Use Google calendar to mark important events like Registration open, Presale start, and Crowdsale start. Mark the timing of start on Google calendar e.g. 06.00UTC, 09.00 CEST etc. Be ready with your loaded Ethereum wallet at the specified time. Some ICOs got fully subscribed in minutes!
At the time of writing this article, there are 96 ICOs running. Maybe, only 10~15 are good ones and practically only 3~4 are promising, long-term and solid projects. Invest only in those 3~4.
ICO Dilemma: To Hold or to Sell?
If you have 1 lac to invest; better to put 25k each in 4 solid ICOs rather than 10k in 10 good ICOs.
If you are lucky enough to get into solid ICOs like Kyber, the best strategy would be to hold for long term. But if you are short of money and want to invest in other upcoming promising ICO, then sell half of your holdings on major exchange listing and the other half can be kept for a long term. If you had invested 4 ETH in KNC and your investment increased to 20 ETH on listing to Liqui.io, then sell 10 ETH and keep 10 ETH worth of KNC in cold wallet. If it goes to 8 ETH in some other ICO, then sell 4 ETH and keep 4 ETH worth of coin. You will not get ICO price in a lifetime for strong coin. This is your long-term investment. If it is listed less than 2 times, 50~70% above ICO price, then better to sell and reenter after one month if required.
Explanation: If you had invested 4 ETH in KNC and your investment became 5X (ie. 20 ETH when listed on Liqui), you may consider selling 10 ETH and keep 10 ETH worth of KNC in a cold wallet.
Similarly, if you get 8 ETH in another ICO, then sell 4 ETH and keep 4 ETH worth of coin. This is your long-term investment. If the price falls below 2X (i.e. 50~70% above ICO price), then it is better to sell and reenter after one month, if required.
Additional Tip: Don’t sell your ICO holdings on EtherDelta because you will get a lower price. Wait for the coin to get listed in one major exchange where you will get a much better price.
Missed a solid ICO - What should you do now?
If you miss any good ICO for any reason and you want to buy in any case then buy on EtherDelta immediately after ICO. Don’t wait for exchange listing. If you failed to buy on ED and due to some reason, I would advise you not to jump immediately on exchange debut. Don't let FOMO take over your emotions. Wait for one month for the price to get stable. You will surely get much lower price than the exchange listing price; which is 5 to 10 times in initial days sometimes. Many respectable projects like TenX, 0x, DNT, Civic, BNB, ADeX which went right up to 5 to 10 times after exchange listing are now down by 50 to 90 % from their all-time high (ATH) price!
If you missed some good ICOs and not able to buy on the dip, don’t worry. Life doesn’t end there. Many opportunities will always be there. Just be agile to grab it timely and strictly whitelist yourself for all upcoming ICOs on your radar.
Which are some of the websites to follow to keep yourself updated for ICOs?
Most of the information regarding the project is available on their whitepaper. However, if you want reviews from the third party then there are many websites. Few are listed below.
ICO - Should you Invest?
ICO is a great way to earn a good amount of money in short-term as well as in long-term. And I definitely recommend you to include some part of your investment in good ICOs. Invest in the right ones. Invest wisely, patiently and confidently.
If you have any questions regarding ICOs, feel free to drop them under comments. We will be happy to help you.
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— Bharata Finance (@FinanceBharata) October 7, 2017
Article Credit - Mandar Shirke