How to Buy ICO Tokens for Beginners in 2024

New cryptocurrencies holding their initial coin offering (ICO) have the potential to shoot upwards after launch. Many traders and investors keep a close eye on ICO coins so that they don’t miss out on big gains. But for new crypto traders, it’s important to learn how to buy ICO tokens.

In this guide, we’ll explain everything beginners need to know about buying ICO cryptocurrencies—from how to purchase them to why they’re worth investing in. Keep reading to learn more.

How to Invest in ICO Tokens – Step-by-Step Tutorial

Let’s take a deeper dive into the steps above to break down the process of buying ICO tokens.

Step 1: Decide Which ICO Token to Buy

The process of buying an ICO token starts with deciding which token to buy. There are dozens of ICO tokens in the crypto market during any given week. It’s up to investors to do their research to figure out which new coins have high potential.

We’ll explain how to find the best ICO tokens in more detail below. However, a good place to start is to check out our guide to the best upcoming ICOs.

One of the top ICO tokens right now is $SPONGE. This token is currently on presale and plans to list on exchanges as soon as the presale sells out. We’ll use Sponge V2 as an example for the rest of this tutorial.

Step 2: Open an eToro Account

In order to buy $SPONGE or other ICO tokens, investors will need to have another cryptocurrency to exchange. Usually, new crypto projects require Ethereum or Tether.

To get Ethereum or Tether, investors need to buy these tokens from a crypto exchange like eToro. eToro enables new investors to sign up in minutes and offers some of the lowest fees in the industry. The exchange also makes payments easy by accepting debit and credit cards, most major e-wallets, and bank transfers.

Visit eToro and click ‘Join eToro’ to create a new account. Enter an email, username, and password, then verify the email address. eToro requires new users to complete Know Your Customer (KYC) information, including providing a phone number, address, and ID.

Step 3: Set Up a Crypto Wallet

Investors will also need a crypto wallet in order to invest in ICOs. There are many free and secure wallets to choose from, including eToro’s mobile wallet and MetaMask.

MetaMask is widely used and connects seamlessly to most crypto presale and ICO platforms. To install it, head to the MetaMask website and download the software for a browser or mobile device.

Open MetaMask and create a new login. Be sure to use a strong password. Write down the recovery phrase and store it somewhere safe.

Step 4: Buy Ethereum or Tether

Next, return to eToro to buy Ethereum or Tether. It’s a good idea to buy a little more $ETH or $USDT than the amount needed to buy the desired ICO token. That way, there will be funds left over after paying for Ethereum transaction fees, also known as gas fees.

On eToro, search for ‘Ethereum’ or ‘Tether’ and click ‘Trade’ when the token appears. Purchase the cryptocurrency, then send it to the wallet established in the previous step.

Step 5: Buy & Claim ICO Tokens

Now it’s time to buy an ICO token. There are many active ICOs to choose from at anyone time, so it’s important to do your research and pick out sound projects with high potential, such as $SPONGE.

Head to the Sponge presale page and click ‘Connect Wallet.’ Follow the prompts to connect the crypto wallet.

Then enter the amount of $SPONGE to buy in Ethereum or Tether. The platform will automatically calculate the equivalent amount of $SPONGE tokens.

Click ‘Buy’ to complete the purchase.

The process for how to buy ICO crypto tokens is similar for other cryptocurrencies holding a presale.

What Are ICO Tokens?

ICO cryptocurrencies are tokens being sold to the public for the first time. They are usually new cryptocurrencies, although some tokens may establish themselves with private funds for a length of time before holding an ICO.

The goal of an ICO is to raise funds for a crypto project. A new crypto project can sell tokens to the public in an ICO to raise funds in established cryptocurrencies like Ethereum or Tether. The project can then use these funds to pay developers or achieve the project’s roadmap.

The ICO boom of 2017-2018 raised an estimated $33.4 billion. Today, it’s common for a crypto ICO to raise $10 million or more for a new token.

Where to buy ICO tokens will depend on how the ICO is taking place. Crypto ICOs can take several forms:

• Crypto presales: Crypto presales are one of the most common types of crypto ICO. With a presale, a new crypto project offers its token directly to the public. Investors can buy the new token and claim it using a crypto wallet.
• Initial exchange offerings: An initial exchange offering, or IEO, occurs when a cryptocurrency lists on a centralized crypto exchange for the first time. An IEO can occur after a presale, in which case it is not an ICO. Alternatively, a new token can go straight to an IEO without a presale, in which case the IEO is also an ICO.
• Initial decentralized exchange offerings: An initial DEX offering, or IDO, is similar to an IEO, but on a decentralized exchange. Again, an IDO may or may not be an ICO depending on whether the token has already been sold in a presale.

Are ICO Tokens the Same as Other Cryptocurrencies?

ICO tokens are cryptocurrencies just like Bitcoin, Ethereum, and other established crypto tokens. However, there are some important distinctions to keep in mind when considering whether to invest in ICOs.

Where to Buy ICO Tokens

Where investors can buy ICO cryptocurrencies will vary depending on the form of the ICO. Often, they may have to buy tokens through a dedicated presale website instead of through an exchange.

In contrast, existing cryptocurrency tokens are normally available on centralized and decentralized exchanges.

ICO Tokens Are New

In most cases, ICO tokens are brand new cryptocurrencies. Many crypto tokens that hold presales do so as a way of launching a project and raising funds for development.

The project itself may have a whitepaper and roadmap describing what it will provide investors, but the finished product may not yet exist. Often, presale cryptocurrencies don’t hold their token generation event until the end of the presale.

This is in contrast to established crypto tokens, which have tokens already in circulation and may have a finished product. For example, Ethereum has a functioning blockchain network that anyone can use today.

ICO Tokens May Have Limited Availability

For established cryptocurrencies, the available supply of a token is determined by how many coins are circulating on exchanges. The supply can increase or decrease as investors in the token buy and sell coins on the open market.

ICO tokens, on the other hand, typically release a limited supply of tokens. For example, a presale crypto might release 50% of the total token supply during the presale. The total value of the tokens to be sold during the ICO is equal to the presale’s hard cap.

This means that an ICO can run out. If an investor is late to a presale or another ICO, they may have to wait to purchase tokens on the open market—often at a price higher than the ICO price.

Tokens May Be Locked

Another thing investors should know about how to buy ICO crypto tokens is that tokens can be locked to trading for some amount of time.

In crypto presales, for example, investors typically purchase tokens upfront, but don’t receive them until after the presale ends. In the meantime, investors cannot take ownership of their purchased tokens or sell them on the open market.

In an IEO or IDO ICO, smart contracts may prevent tokens from being sold for a limited amount of time. For example, a token may be restricted from being sold on an exchange for 30 days after the ICO.

This has the effect of pushing up token prices after the ICO, since investors can’t sell their coins and add to the market supply. However, investors should watch out for a flood of tokens onto the market when the trading embargo lifts.

ICO Tokens Carry Risk

All cryptocurrencies carry risk, including established cryptocurrencies. However, investors should be especially cautious when buying ICO tokens.

That’s because crypto ICOs present several unique risks.

First, there’s a risk that the token could flop. If the ICO isn’t fully bought up, the token could lose value. Since there’s no price history for new tokens, it can be hard for investors to know if an ICO crypto is a good deal.

On top of that, crypto ICOs have a long history of fraud. One common type of fraud is a rug pull, in which developers of a new crypto take the funds raised during an ICO and disappear without ever delivering the promised product. The largest rug pull in crypto history, OneCoin, stole between $4 and $15 billion from investors.

Investors can minimize risks by thoroughly researching crypto ICOs. We’ll explain how to stay safe later in our guide.

Why Invest in ICO Tokens?

There are several reasons why many investors choose to invest in ICO tokens over—or in addition to—established cryptocurrencies.

First Access to New Crypto Innovations

One of the most exciting aspects of ICO cryptocurrencies is that they bring new innovations into the crypto market.

Investors in a crypto ICO are among the first to get access to these new innovations. The amount of time that ICO investors enjoy exclusive access to a project varies, but it can be weeks or months.

In some situations, that early access can provide an edge. In play-to-earn crypto games, as an example, early users may be more likely to earn rare or valuable NFTs within a new game.

Potential Price Appreciation

Another major reason that investors watch crypto ICOs is that they offer the potential for significant profits. The $PEPE ICO, for example, delivered a 5 million percent profit for early investors.

While not every ICO token will be as successful as $PEPE, there are many examples of new cryptocurrencies shooting upward upon their launch. $FINE token jumped 1.5 million percent on its ICO. $CAT is up more than 250% on its recent ICO.

ICO tokens are exciting and often have more demand than there is token supply available. So, these cryptocurrencies have the potential to shoot upwards during an IEO or IDO as traders pile in.

Discounted Pricing Relative to Launch

Crypto presales offer even greater potential for price appreciation for early investors. That’s because many presales are broken into stages, with the price of the new token increasing at each stage.

The first stage price could be discounted by as much as 50% compared to the final stage price, which is often the price at which a token will list on exchanges. So, investors in a presale ICO could go into an exchange listing already holding unrealized gains in their new token.

Incentives for Early Investors

Some ICOs also provide incentives other than price discounts for early investors.

For example, investors may be able to stake the tokens they purchase during a presale and earn interest. Meme Kombat, a new crypto holding its presale right now, is offering 112% APY on staked tokens purchased during the presale.

Other projects may give early investors NFTs, merch, access to a beta version of their platform, or perks within the future token ecosystem. All of these incentives can greatly add to the value investors receive when buying an ICO token.

What are the Top Tokens to Buy Now?

We’ll take a closer look at 2 of the top ICO tokens to buy today.

1. Sponge V2 ($SPONGE) – A Rising Star in Meme Coins, Merging Nostalgia and Crypto Excitement, Offering 2,350% APY in Staking Rewards.

After the brutal 2022, the crypto market is recovering nicely this year. In fact, Bitcoin has rallied so much that it is only about 38% away from its all-time high (ATH) of $69,000. What this means for altcoins, especially new coins, is a strong uptrend. 

So, as a beginner, if you are looking to buy ICO tokens, then SPONGE V2 is the right choice for you. This new coin is the perfect blend of familiarity while offering the volatility and excitement of crypto. 

SPONGE V2 is the second rendition of the meme coin Sponge, which is based on the popular cartoon franchise SpongeBob, which captured the love and attention of many. And much like the beloved SpongeBob series, the Sponge V1 token gained a lot of traction and price appreciation when it was launched early in 2023. 

Now, SPONGE V2 is building on this success with a bigger community, better memes, and a much higher marketing budget. In this next chapter of Sponge, there is more hype and much better market conditions, so yet another but more lucrative opportunity for early adopters. 

So, how do you get your hands on SPONGE V2? The only way to own the V2 version of the token is through the stake-to-bridge utility, which requires staking SPONGE V1 tokens to earn an equivalent amount of SPONGE V2 tokens. Your V1 tokens will be locked permanently. 

Those who already own Sponge V1 tokens can simply go to the website and stake their tokens. As for new users, you also need to go to Sponge’s official website first, then swap your ETH or USDT for Sponge V1, and at last, you can stake your V1 tokens. 

The V2 launch actually comes with additional utility in the form of staking rewards, which will be distributed in Sponge V2 over a period of four years, offering passive income for long-term investors. With the SPONGE V2 reward rate being 2,350% p/a, an increasing number of V1 holders are staking their tokens, and nearly 700 million SPONGE V1 are already staked. 

SPONGE V2 has a total supply of 150 billion, out of which almost 27% is available for early investors and over 43% is set aside for staking rewards, while the rest is allocated to CEX liquidity, marketing, game development, and P2E rewards. 

This time, Sponge V2 is also building a play-to-earn (P2E) game for token holders, who can purchase gaming credits with their V2 tokens and earn additional V2 tokens as they play and progress through the game.

With the anonymous team of Sponge, which has already proven itself, aiming for a tier 1 CEX listing this time, this is certainly the chance for beginners to get in early with an ICO token. To get started, just head over to the Sponge website and read their whitepaper. Also, don’t forget to follow Sponge on Telegram, Discord, and Twitter for regular updates.

2. Bitcoin Minetrix ($BTCMTX) – Stake-to-Mine Platform Revolutionizing Cloud Bitcoin Mining, Presale Raises Over $300K in 7 Days

Bitcoin Minetrix is a new crypto project that promises to solve one of the biggest problems with cloud crypto mining.

Currently, miners who want to rent computing power for mining have to send crypto to a marketplace and simply trust that they’ll receive the mining power they paid for. However, fraud in this industry is common and that’s made it hard for individuals to compete in Bitcoin mining.

As a solution, Bitcoin Minetrix will invest in its own mining infrastructure. Investors in the project’s $BTCMTX token can stake their coins and receive mining credits. They can then burn these mining credits to pay for computing power and earn mined Bitcoin.

Investors never need to send their $BTCMTX tokens or any other cryptocurrency anywhere. They can stake $BTCMTX and earn Bitcoin in return. It’s up to investors to decide whether to sell their Bitcoin or reinvest it in $BTCMTX to earn even more Bitcoin in the future.

Bitcoin Minetrix is currently holding its crypto presale, with an ICO planned as soon as the presale ends. During the current presale stage, investors can buy $BTCMTX at a price of $0.011 using Ethereum, Tether, or BNB.

The presale sold more than $170,000 worth of $BTCMTX in its first 24 hours, (which has currently risen to $300k) so investors can’t wait too long to join before the ICO.

This new project has gone through a third party smart contract audit, and has passed with flying colours.

For more information read the official Bitcoin Minetrix Whitepaper, and join the project’s socials (Twitter and Telegram). 

3. Meme Kombat ($MK) – Crypto Staking and Betting Platform Enabling Degen Community to Wager on Virtual Meme Battles, Offering 112% APY When $MK Tokens are Staked

Meme Kombat is another explosive presale cryptocurrency with a hot ICO on the horizon. This project is bringing together the biggest memes of the year—including Pepe, Shiba Inu, and Milady Maker—into the arena together to battle for supremacy.

Each of the memes included in the combat tournament have fighting statistics. Battles will be managed by AI to keep them fair, random, and exciting.

Investors in Meme Kombat’s $MK token can bet on the outcome of each match and earn additional $MK if they bet right. In essence, the project is taking the fun of sports betting and bringing it to memes.

Investors also have the option to stake $MK and earn rewards in $MK tokens. During the presale, investors who stake $MK can earn tokens at a rate of 112% APY.

The project has already raised more than $115,000 through its presale. $MK is currently priced at $1.667 and investors can buy it using Ethereum, Tether, or BNB.

50% of the $MK supply is set aside for the presale, which has a hard cap of $10 million. Notably, 10% of the $MK presale supply is set aside for community rewards—an indicator that this project plans to reward investors even after its ICO.

For more information on Meme Kombat, read the whitepaper and join the socials (Telegram and Twitter).

Only ETH, BNB, and USDT are supported for this presale.

4. eTukTuk – Sustainable Crypto Building EV Charging Stations in Developing Countries

eTukTuk is an innovative cryptocurrency project that promotes EV adoption in Sri Lanka and other developing nations. By leveraging $TUK, the native token, investors can earn staking yields, and TukTuk drivers can make payments in charging stations. 

eTukTuk notes that most TukTuks operate using ICEs (Internal Combustion Engines) – which are slowly going obsolete due to the high levels of air pollution they lead to. Alternatively, eTukTuk will build EVSEs (Electric Vehicle Supply Equipment) and ZEVs (Zero-emission Vehicles) in developing countries. 

TukTuk drivers can charge their eTukTuks on these charging stations with $TUK. The charging stations will be installed and operated by local territory partners, who will get a cut of the transaction revenue. 

This entire process is expected to give TukTuk drivers an additional 400% income. Token holders can contribute to the network by staking their holdings into power nodes. At press time, the staking APYs (Annual Percentage Yields) are 386%. 

eTukTuk will also offer $TUK tokens through an upcoming play-to-earn game where you can collect passengers and earn rewards depending on your speed. Currently, $TUK is priced at $0.26 per token during the ongoing presale round. The presale has raised more than $546K. 

For more information, read the eTukTuk whitepaper and join the Telegram channel. 

How to Find the Best ICO Tokens to Buy

To realize the benefits of buying ICO tokens, it’s crucial that investors choose the right ICO tokens to invest in. We’ll explore some of the ways to find top ICO coins.

ICO Token Guides

Crypto industry insiders are constantly on the lookout for promising crypto ICOs. They frequently highlight the best upcoming ICOs in guides for investors.

For example, investors can check out our guides to the best crypto presales and best upcoming ICOs.

Coinsniper

Coinsniper is a crypto ICO research platform that provides in-depth data about ongoing crypto presales. It provides a list of all presales happening right now, plus lets investors quickly explore details about each project.

One of the nice things about Coinsniper is that investors can vote on their favorite ICO tokens. This offers a way for users to see which presales are most popular at a glance.

Coinsniper also notes whether a presale crypto has undergone audit and KYC checks. These checks can help protect investors from scams.

Social Media

Social media is an invaluable resource for learning more about new crypto ICOs. Virtually every new project holding a presale, IEO, or IDO has a social media presence. Investors can follow a project they’re interested in on Twitter, Telegram, or other channels to learn more about the ICO.

Investors can also follow crypto exchange accounts on social media. Exchanges usually announce new listings, including ICOs, on their social channels. Following these accounts ensures that an investor never misses out on a potentially profitable ICO.

Crypto Influencers

Crypto influencers can also direct investors towards promising crypto ICOs. Influencers typically have a strong presence on Twitter, YouTube, and other social platforms.

One thing to remember when exploring ICOs recommended by crypto influencers is that these influencers often have a financial stake in a project’s success. That said, influencers usually achieve their status by being right frequently about the potential of new crypto projects.

How to Buy ICO Tokens Safely & Avoid Scams

While ICO tokens can be highly profitable, it’s extremely important that investors remember to stay safe. There are many scams hidden within the world of crypto ICOs, and investors need to know how to tell the difference between a legit token and a ruse.

Here are several tips to buy ICO crypto tokens safely.

Research Every Project

The most important thing investors can do to protect themselves when investing in crypto ICOs is to research projects before buying tokens.

Legit ICO projects should have a whitepaper that lays out what the project is all about. It should clearly identify the project’s market opportunity, use cases, and potential audience. It should also specify how the token being sold will be used in the new project’s ecosystem.

In addition, every project should have a development roadmap. This will chart out milestones such as exchange listings, platform launch, and more. It’s okay for roadmaps to be aggressive, but the timeline they present should be realistic.

Look for Audit and KYC Checks

ICO crypto projects should also undergo security checks.

Auditing firms like CertiK can examine a project’s smart contract line-by-line to ensure that the contract does what the project team promises. Projects that aren’t audited are much more likely to be rug pulls.

Many projects also reveal the identities of their developers and perform a KYC check on them. This ensures that the development team is accountable since investors know who they are. If the development team were to scam investors, everyone would know who was behind the scam.

Buy from Regulated Exchanges

When purchasing an ICO token as part of an IEO, it’s important for investors to stick to regulated crypto exchanges. These exchanges have investor protections in place and often perform their own due diligence on new crypto projects before listing them.

When buying an ICO as part of an IDO, note that the exchange may not perform similar due diligence. In addition, decentralized exchanges are often not regulated. However, investors should still stick to exchanges that have strong governance protocols and large user bases.

Conclusion

Learning how to invest in ICO tokens is easy and only takes a few steps. Investors need to choose what ICO token to buy, then swap for it using Ethereum or Tether purchased from a crypto exchange.

For investors looking for the best ICO token to buy today, we recommend Sponge V2. it is upgraded version of the Sponge meme coin, offering a 150 billion token supply. It features a transition mechanism from V1 to V2 via a stake-to-bridge mechanism and a play-to-earn game. The platform to leverage its user engagement and significant value growth, following the original $SPONGE’s trajectory.

References

• https://www.businessthink.unsw.edu.au/articles/burn-mint-coins-ico
• https://coinmarketcap.com/academy/article/the-onecoin-scam-the-dazzling-story-of-the-biggest-crypto-ponzi-in-history
• https://www.coindesk.com/markets/2023/05/05/pepecoins-bewildering-rise-turned-a-pittance-into-an-almost-5000000-meme-coin-profit/
• https://www.dextools.io/app/en/ether/pair-explorer/0xb54ce26f2e30f64c5b684b141311ce138ab5e00e
• https://www.dextools.io/app/en/ether/pair-explorer/0xae30f13675a1b58c313663f066c43e6190457a76
• https://coinsniper.net/presales

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