Often, when you are reading cryptocurrency news you may come across to the terms such as ICO, presale and so on. For instance, Etherecash is a currency that is trying to revolutionize the “core functions of finance” – lend, spend and send. The Pre-ICO Sale began on the 25th of October, 2017 and was finished on the 7th of November, 2017. The ICO began on the 15th of the same month and was over in mid-December. The soft cap is $15 million and the hard cap is $100 million.
These terms and data may seem rather confusing at first. However, by the end of this article, you are guaranteed to understand all the terms and ideas.
What is Pre ICO?
- What does Pre ICO mean? – ICO stands for Initial Coin Offering. Pre ICO lets the investors purchase tokens prior to the official opening of the crowdfunding.
- However, it is a method of crowdfunding, which is targeting cryptocurrencies.
- After the crowdfunding, the funds start financing startups.
This is how pre ICO works:
- During the process, some crowdfunded cryptocurrencies are given to investors and then they exchange the tokens for other cryptocurrencies.
- Usually, Blockchain enterprises run ICO Presale (also known as Pre ICO), before the crowd sale is live.
Pros of ICO
- Provides good distribution of capital.
- A crowd-funded startup = startup with many supporters.
Cons of ICO
- Frauds and scams.
- Experienced investors sometimes take advantage (as there is lack of information), and “move” the market.
What is an ICO presale?
- ICO presale is another term to refer to Pre ICO
Pros of Presale ICO
- A way of fundraisers to ensure the success by gathering investors and sponsors for the official release.
Cons of Presale ICO
- Investors are at risk of not receiving profits.
- Scarcity – not available to many people.
The best presales
Here are some factors that you need to pay attention to, in order to decide if the presale is the best or not.
- Hype: Usually if the Pre ICO is a good one, you will come across it on social media very often and will be discussed a lot in various other cryptocurrency forums.
- Rumors: Always read what the experts have to say about the Pre ICO and make sure you consider their opinions.
- Funded by Big Companies: Usually, presales that are funded by big companies, have a potential of being successful.
- Reviews: Also, make sure you have a general idea of what other people think about it, thus it will navigate you to make better decisions.
How to participate in a presale?
This is how to get pre ICO:
- Make sure you own cryptocurrencies.
- Get registered on a cryptocurrency exchange platform.
- Load up the account with fiat money.
- Buy the preferred cryptocurrency.
- Store the currency in a wallet (web, hardware etc.).
- Study the ICO agreement carefully.
- Download the wallet advised by the company.
- Send the sum (compatible with the price/project token).
- Receive the equivalent sum of tokens in your wallet (web, hardware etc.).
How to keep crypto tokens safe?
To keep your tokens safe you need crypto wallets.
However, crypto wallets are very much different from “traditional” wallets.
- It is a software, which stores the crypto tokens.
- It keeps the public/private keys.
- It lets the users do transactions (send/receive).
Note: transactions cannot be done without a wallet.
There are several types of wallets and their basic features:
these run on the cloud, which lets the users have access to their coins anywhere and anytime
Pros: Easy to use; Convenient.
Cons: Not safe (can be stolen); Easy to hack.
These are mobile apps, which you can download on your Android or iOS mobile device.
Pros: Simple to use; Very accessible.
Cons: Safer than online wallets, but still can be hacked; If your phone gets lost, then there may be problems with your crypto tokens too.
These store user’s public/private keys on a special device, for example on a USB drive.
Pros: The safest crypto wallet; Works offline.
Cons: Not very handy.
The users of paper wallets get a copy of public and private keys.
Pros: Safe to use; Offline.
Cons: Can be easily damaged; If not kept safely, can be stolen by someone.
Despite the wonderful idea behind ICOs, currently, it has several disadvantages. However, these issues have a rather big potential of being solved in the near future. Thank you for checking out this article and we hope it gave you a better idea about ICOs. Please check out our website to learn more about cryptocurrencies.