Growing number of people recognize that one of the best ways to invest in cryptocurrency is by participating in Initial Coin Offerings, a.k.a. ICOs. However, one barrier that stops people from investing is unfamiliarity with the ICO process. At a glance, funding your favorite project though ICO might look complicated. However, once you get there, it will be a piece of cake. This article will show you to participate in ICO issued on Ethereum blockchain.
The first step is setting up Ethereum ERC20 compatible wallet.
Why do you need an ERC20 compatible Ethereum wallet?
Most ICO tokens are issued on Ethereum blockchain. It means that people who want to participate in ICO need to have Ethereum and its wallet. However, not all digital wallets support Ethereum powered ICO tokens. For example, to participate in Bytemine ICO, you need to set up an Ethereum ERC20 compatible wallet where you and only you hold its private keys. You probably know that ICO is about sending and receiving coins. Your private keys are necessary for correct interaction with smart contracts to transfer and receive tokens.
DO NOT PARTICIPATE IN ICO BY SENDING COINS FROM ANY CRYPTOCURRENCY EXCHANGES. YOU NEED A ERC20 COMPATIBLE ETHEREUM WALLET. OTHERWISE, YOU WILL LOSE YOUR FUNDS.
To clear the confusion, here is a token compatible Ethereum wallets list.
These wallets have been verified to support Ethereum ERC20 tokens. The list is continuously updated at Tokenmarket.
- MyEtherWallet (Online)
- MetaMask (Firefox and Chrome browser extension)
- Mist (Desktop)
- Parity (Desktop)
- imToken (iPhone)
- imToken (Android)
To date, these Ethereum wallets are known to be incompatible with ICO’s. Before investing, you should move your ETH to one of the wallets mentioned above.
- Any Bitcoin exchange
- Any Ethereum exchange
Next, we will show you how to open a suitable Ethereum wallet that will serve your needs. For that, well use MyEtherWallet and Mist wallets.
How to open MyEtherWallet to participate in ICO
MyEtherWallet is the most convenient Ether wallet which is capable of smart contracts. Thus, it’s no surprise that most people use it to store their tokens acquired via ICOs. It is an online wallet, but it also provides offline and hardware wallet support, meaning that users can generate wallet keys for a variety of Ethereum storage solutions. That makes it a great all-around solution for everyone interested in investing in ICO.
Here’s how to set it up.
1.Go to www.myetherwallet.com.
You will be greeted by several safety reminders and option to create a new wallet.
2.Create a password.
Use a combination of letters, numbers and symbols to make it as strong as possible. Write it down immediately and, if possible, make several copies. Then, click “Create New Wallet.”
3.Download and store your keystore file.
Do it for security reasons. As you know, there can never be too much safety precautions in cryptocurrency trading. Store your keystore file in a secure location and click continue.
4.Save your private key.
It may look just like a string of symbols, but this is your private key and its safety is of critical importance. Make sure to back it up and keep it safe. You can also print it to keep it as a paper wallet. Remember, there is no way to retrieve your forgotten or lost private key and password, therefore, take all necessary safety measures suggested by the page.
5.Use your private key or keystore file to open your wallet.
There are many ways to unlock your wallet, but to keep it simple let’s stick with the files we just got — private key and keystore file. Select and paste your private key or upload the keystore file to unlock your wallet.
6.Congratulations, you’ve just opened your fully functional Ethereum wallet.
Next time you want to access it, go to www.myetherwallet.com, click “View Wallet Info” in the top right corner and authorize yourself again.
All is left now is to load your wallet up with some Ether. If you already hold some of it, send it to your public address. MyEtherWallet also makes it easy to buy Ether via Coinbase (although it sells at a more expensive rate than usual).
If you want further instructions on how to buy Ethereum with fiat or Bitcoin, click here.
If you need further guidance on how to top-up your wallets, please check our other guide.