Why do you participate in an ICO?

There are primarily two reasons why people participate in an ICO:

1. People see it as an investment and, as a rule, have the purpose of generating a profit / return on the participation.

2. People participate in support of a good and innovative start-up or project. A project that the participants think may make a difference. For example, be a project aimed at helping the people of the developing countries. How to freely acquire an electronic wallet that they can use to store currency (including crypto currency) and send / receive money. Indeed, it is a worldwide problem that the people of poor countries do not have access to a bank account.

How do you participate in an ICO?

When an ICO starts, there is a time period in which to participate. Tit and often there are presales in an ICO. That is, you receive one whose percentage more tokens if you participate / buy tokens before the right ICO sale begins. This will result in a greater chance of earning money by receiving a larger number of tokens.

The company behind an ICO basically determines what they want to pricing their offered tokens for. For example, be that a token costs 0.01 ETH (Ethereum). After pre-sale, the "real" ICO period starts, where you receive the amount of tokens that match the amount you participate in - based on the company's price estimate.

Example:

Suppose we continue to use the same valuation of a token. So the value of a token is at 0.01 ETH below ICO.

~ 1 ETH = 100 tokens.

In this calculation, an ETH will be $ 175.
~ 1 ETH = 1771 dkk.

Presale period:

If you participate in the presale period and you receive a bonus of 20%, you will receive 20% more tokens than in the ICO period. Suppose you shoot 2 ETH in this project.

~ 2 (number of ETH) * 100 (number of tokens per ETH) = 200 tokens

200 tokens * 1.20 (20%) = 240 tokens

You will therefore receive additional 40 tokens during the presidential term.

In summary, one participant in this presale has received 240 tokens in this ICO. You have paid 2 ETH, which is 3,542 dkk.

ICO period:

If, as a participant, 2 ETH shoots into the ICO period, you receive 200 tokens for the entered ETH.

Ie 2 (ETH * 100 (number of tokens per ETH) = 200 tokens

In summary, when participating in the ICO period, 200 tokens were received in this ICO. You have paid 2 ETH, which is 3,542 dkk. So you receive 40 morekens of participation in presale than you do in the ICO period. You have paid it together.

These tokens that are received are issued by the company behind this ICO issuer.

One typically participates in sending ETH, BTC, LTC or the like. to a wallet affiliated with the company behind this ICO. You must fill in your own "wallet ID", which is the address of your wallet, which you will receive your tokens in. Then, at the back of the company, where to send the selected tokens.

It is important to remember to write down the correct address, otherwise even the tokens will be lost. It has to be said that there is a difference in the wallets depending on which token it is. One can for example Do not send ETH to a BTC wallet and vice versa.

How can you earn money from an ICO?

It's really easy to understand how to earn money from an ICO.

It works largely as much as in the stock market. The company behind offers the stock at a specific price (just like an ICO). After that, the trade on various exchanges (exchanges) determines the price of various tokens. It is also here that you typically sell their tokens, unless it takes place privately on various trading sites, for example. Facebook.

It is the supply and demand that determines the price. So if there are many who want to have fingers in a specific token and there are few that sell, the price typically rises. Of course, the traded price also has something to say. If a large amount of tokens are sold a part below the market price then this will affect the price down. The same is true in the opposite direction.

Example:

Let's assume that the price of the token we bought before has risen to 0.0175 ETH. We also assume that an ETH has not risen or fallen in value since we bought these tokens. Then you have generated a return of 75%. That means that you can now sell its token to 75% more than it yourself gave (and even more if you participated in pre-sale).

In this calculation, an ETH will be $ 175.
~ 1 ETH = 1771 kr (based on current dollar rate).

presale:
In presale we received 240 tokens, which we now have to sell to ETH to calculate the earnings in NOK and ETH.

In ETH, the profit will be:

240 (tokens) * 0.0175 (ETH value per token) = 4.2 ETH

When you bought these tokens, you paid 2 ETH and you have therefore earned 2.2 ETH:

4.2 (number of ETH after increase) - 2 (number of ETH at participation) = 2.2 ETH

In kroner and ear, the profit will be

4.2 (ETH) * 1771 (price in dkk) = 7,438 kr.

~ 7.438 (current value) - 3,542 (value below ICO) = 3,896 kr.

You have therefore earned DKK 3,896 on the increase if you bought under presale.

ICO period:
During the ICO period, we received 200 tokens, which we now sell to ETH to calculate the earnings in NOK and ETH.

In ETH, the profit will be:

200 (tokens) * 0.0175 (ETH value per token) = 3.5 ETH

When you bought these tokens, you paid 2 ETH and you have earned 1.5 ETH:

3.5 (number of ETH after increase) - 2 (number of ETH at participation) = 1.5 ETH

In DKK (Danish kroner), the profit will be

3.5 (ETH) * 1771 (exchange rate in dkk) = 6,998 kr.

~ 6,198 (present value) - 3,542 (value below ICO) = 2,656 kr.

You have therefore earned DKK 2,656 on the increase if you bought under presale.