What is an ICO, and Should I Participate in One? A Guide
- A guide to safely investing in an ICO.

If you've decided to take part in an initial coin offering, there are a few things that you need to be aware of in order to truly grasp their intricacies. Once you've familiarized yourself with some basic concepts, then it becomes a lot easier to understand the rest of the ICO process.

What is an ICO Token?
One of the more confusing things to consider for potential investors is what exactly an ICO token actually is and how it can work for them.
The primary difference between cryptocurrency coins and ICO tokens is the fact that ICO tokens are not technically currencies, and require no Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term. Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term have some form of monetary equivalent and can be exchanged as such, whereas ICO tokens do not possess this quality. Tokens represent how many crypto-coins a person is entitled to receive when an ICO is over.
What's behind the ICO boom? We're not even done with the first quarter yet, and the data shows that ICO fundraising has already topped $3 billion. pic.twitter.com/ZKAeOlShtN
— CNBC (@CNBC) March 26, 2018
Thus, ICO tokens can come in different shapes and formats. No two ICOs will assign the same type of value to their tokens.
For example, one ICO token may give you part of the coin when it goes live, whilst others may offers other perks, potentially even shares in the business. This is a great way to look at the potential to make money from newer technologies and being the first to get on board when these technologies eventually come out and see the light of day.
Some tokens offer equity, whilst others can function in the form of credit where you're effectively giving a loan to the person who is running the startup.
It is vital that you always read the whitepaper and contract that you're agreeing to as you don't want to be surprised when you're waiting for the renumeration that you're due. Being vigilant and careful in the digital world is extremely important in order to not be scammed or conned.
How Can I Participate in an ICO?
There are several points one must consider before deciding whether an investment in an ICO token is the right choice for you. Building up an understanding of what you are investing in and how it works is vital.
Ensure that the team behind the ICO is one that you feel you can trust and get behind. A good balance of experienced developers and innovative business minds is a good sign for a project.
"If you're making a good investment in a security it shouldn't bother you if they close down the stock market for 5 years"
Keep the faith.https://t.co/0UiTZTal1Q — ICOWhitelists.com (Not giving ETH) (@ICOWhitelists) August 8, 2018
To participate in an ICO, you undertake a relatively simple process which requires you to follow a few basic steps. If you follow them properly, then your risk of losing money is greatly reduced.
First off, you need to purchase the cryptocurrency required to buy the tokens, which most of the time are Bitcoin or Ethereum. Be sure to check which of these is accepted, as you do not want to buy currency that you do not need.
Next, you will need to create a crypto wallet where you can store the cryptocurrency. Make sure to look towards offline storage, which gives you control of your private key.
After you've set up the wallet, you need to send your public address, and you're ready to be part of the ICO.
Avoiding Scam ICOs
There are plenty of steps that you can take to avoid being scammed by an ICO. Though scams are becoming more sophisticated and increasingly tricky to spot, there are still certain precautions which can be taken.
The most important thing is to use common sense throughout the whole process. After all, if something sounds too good to be true, then it probably is.
A project may talk about unrealistic goals, making you believe that you're investing in the next big thing. Conducting research into the validity of these claims is vital. A project should never guarantee anything, but make you aware of its potential if all goes well.
Miniera's co-founder Christian Petermann has been arrested yesterday and is said to still be in custody. Some investors decided to further investigate on the project, read more about the findings here:https://t.co/29YGnqV6Wc@ICOSCAMBUSTER @ICOscams @icoscamalert #ico #ICOnews pic.twitter.com/HLfBF9Y4Mt
— Cryptoscene (@Cryptoscene_nl) May 18, 2018
Another thing that you need to look into is the ICO's white paper. Here you will find what is wrong or right with the way that the coin offering functions. It is a good sign if the document seems professionally written, but you should also see if the actual technology is explained in a practical manner. If there are many buzzwords but little substance, it's probably best to be wary.
Finally, look into the team behind the project. Are they reputable individuals with years of experience in the industry who are looking to create exciting new technology? If the team behind the project not clearly identified, this is a bad sign. Additionally, if the social media profiles of the team members have only been recently created, and are not particularly popular, you should think twice before sending them money. Tracing the social media history of the developers is not difficult, and may save you a lot of hassle in the future.
What kinds of experiences have you had investing in ICOs? Leave us a comment below.
If you've decided to take part in an initial coin offering, there are a few things that you need to be aware of in order to truly grasp their intricacies. Once you've familiarized yourself with some basic concepts, then it becomes a lot easier to understand the rest of the ICO process.

What is an ICO Token?
One of the more confusing things to consider for potential investors is what exactly an ICO token actually is and how it can work for them.
The primary difference between cryptocurrency coins and ICO tokens is the fact that ICO tokens are not technically currencies, and require no Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term. Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term have some form of monetary equivalent and can be exchanged as such, whereas ICO tokens do not possess this quality. Tokens represent how many crypto-coins a person is entitled to receive when an ICO is over.
What's behind the ICO boom? We're not even done with the first quarter yet, and the data shows that ICO fundraising has already topped $3 billion. pic.twitter.com/ZKAeOlShtN
— CNBC (@CNBC) March 26, 2018
Thus, ICO tokens can come in different shapes and formats. No two ICOs will assign the same type of value to their tokens.
For example, one ICO token may give you part of the coin when it goes live, whilst others may offers other perks, potentially even shares in the business. This is a great way to look at the potential to make money from newer technologies and being the first to get on board when these technologies eventually come out and see the light of day.
Some tokens offer equity, whilst others can function in the form of credit where you're effectively giving a loan to the person who is running the startup.
It is vital that you always read the whitepaper and contract that you're agreeing to as you don't want to be surprised when you're waiting for the renumeration that you're due. Being vigilant and careful in the digital world is extremely important in order to not be scammed or conned.
How Can I Participate in an ICO?
There are several points one must consider before deciding whether an investment in an ICO token is the right choice for you. Building up an understanding of what you are investing in and how it works is vital.
Ensure that the team behind the ICO is one that you feel you can trust and get behind. A good balance of experienced developers and innovative business minds is a good sign for a project.
"If you're making a good investment in a security it shouldn't bother you if they close down the stock market for 5 years"
Keep the faith.https://t.co/0UiTZTal1Q — ICOWhitelists.com (Not giving ETH) (@ICOWhitelists) August 8, 2018
To participate in an ICO, you undertake a relatively simple process which requires you to follow a few basic steps. If you follow them properly, then your risk of losing money is greatly reduced.
First off, you need to purchase the cryptocurrency required to buy the tokens, which most of the time are Bitcoin or Ethereum. Be sure to check which of these is accepted, as you do not want to buy currency that you do not need.
Next, you will need to create a crypto wallet where you can store the cryptocurrency. Make sure to look towards offline storage, which gives you control of your private key.
After you've set up the wallet, you need to send your public address, and you're ready to be part of the ICO.
Avoiding Scam ICOs
There are plenty of steps that you can take to avoid being scammed by an ICO. Though scams are becoming more sophisticated and increasingly tricky to spot, there are still certain precautions which can be taken.
The most important thing is to use common sense throughout the whole process. After all, if something sounds too good to be true, then it probably is.
A project may talk about unrealistic goals, making you believe that you're investing in the next big thing. Conducting research into the validity of these claims is vital. A project should never guarantee anything, but make you aware of its potential if all goes well.
Miniera's co-founder Christian Petermann has been arrested yesterday and is said to still be in custody. Some investors decided to further investigate on the project, read more about the findings here:https://t.co/29YGnqV6Wc@ICOSCAMBUSTER @ICOscams @icoscamalert #ico #ICOnews pic.twitter.com/HLfBF9Y4Mt
— Cryptoscene (@Cryptoscene_nl) May 18, 2018
Another thing that you need to look into is the ICO's white paper. Here you will find what is wrong or right with the way that the coin offering functions. It is a good sign if the document seems professionally written, but you should also see if the actual technology is explained in a practical manner. If there are many buzzwords but little substance, it's probably best to be wary.
Finally, look into the team behind the project. Are they reputable individuals with years of experience in the industry who are looking to create exciting new technology? If the team behind the project not clearly identified, this is a bad sign. Additionally, if the social media profiles of the team members have only been recently created, and are not particularly popular, you should think twice before sending them money. Tracing the social media history of the developers is not difficult, and may save you a lot of hassle in the future.
What kinds of experiences have you had investing in ICOs? Leave us a comment below.