Learn How to Buy ICO Tokens in January 2024 – Beginner's Guide – Cryptonews

Last updated:

January 26, 2024 05:05 EST
| 16 min read

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.

Initial coin offerings (ICO) offer access to brand-new crypto projects – usually at a discounted price for early investors. 

In this beginner’s guide, we explain how to buy ICO tokens. Read on to discover where to buy ICO tokens and which crypto startups are worth watching. 

How to Buy ICO Tokens – Quick Guide

Let’s start with a quick walkthrough of how to buy ICO tokens:

• Step 1: Decide which ICO tokens to buy – First, lots of research needs to be done on which ICO tokens to purchase. Read the chosen project’s whitepaper and look into its roadmap and tokenomics.
• Step 2: Set up a crypto wallet – After choosing a suitable ICO project, download a crypto wallet. This is required to invest in ICOs. MetaMask is a popular option for beginners. 
• Step 3: Obtain crypto tokens that the ICO supports – The next step is to obtain a crypto token that the ICO supports.
• Step 4: Buy and claim ICO tokens – Finally, visit the website and connect the MetaMask wallet. Then, choose how many tokens to buy and confirm the investment. The tokens will then be deducted from MetaMask.

Read on for a detailed explanation of how to invest in ICO tokens.

How to Buy ICO Tokens – Step-by-Step Tutorial

Now let’s dive into a more comprehensive tutorial on how to buy ICO tokens. In this example, we explain the steps required to invest in the Bitcoin Minetrix ($BTCMTX) ICO. 

Step 1: Download and Install MetaMask Wallet

To begin with, ICO investors will need a crypto wallet. This is a core requirement when learning how to buy ICO crypto tokens, not only in terms of storage but transferring tokens to the ICO website to purchase them.

There are hundreds of crypto wallets, but MetaMask is a great option for newbies. MetaMask comes as a browser extension for Chrome, Edge, and Firefox. Prefer investing on a smartphone device? MetaMask also comes as an app for Android and iOS. 

Download MetaMask and set up a new wallet. Choose a password and take note of the 12-word backup passphrase, writing both down on paper and securing it somewhere safe.

Step 2: Buy a Crypto Token Supported by the ICO

ICOs enable investors to buy their new cryptocurrency with an established token. In the case of Bitcoin Minetrix, the ICO accepts Ethereum (ETH), BNB and Tether (USDT). Those that are completely new to crypto will need to purchase one of these tokens to invest in the BTCMTX ICO.

Step 3: Transfer Tokens to MetaMask

Now that Ethereum or Tether has been purchased, the tokens need to be transferred to Metamask. This will enable the user to invest in the Bitcoin Minetrix ICO. 

So, open the Metamask wallet and click on ‘Assets’. Towards the top of the interface, the wallet address is displayed beneath ‘Account 1’. Copy the wallet address. 

The tokens can then be transferred to the wallet, with the transaction usually taking 1-2 minutes to process. 

Step 4: Connect Wallet and Confirm ICO Order

The next step is to visit the Bitcoin Minetrix website and click the ‘Connect Wallet’ button and then MetaMask and sign onto the presale site by entering your password and confirming the connection.

The order box for the ICO is on the right-hand side of the homepage. Choose your preferred payment currency, then type in a figure to invest or the number of $BTCMTX tokens to purchase – the adjacent box will automatically update.

Bitcoin Minetrix allows users to earn staking rewards during the presale, with the current APY in excess of 70% – if you wish to stake tokens skip to Step 5.

If you do NOT wish to stake tokens then after inputting the purchase amount select ‘Buy Now’ and continue with the transaction.

As noted above, a small amount of ETH will be needed to cover the Ethereum network (gas) fee.

Step 5: Stake $BTCMTX

If you wish to stake BTCMTX tokens during the presale then select the option that says ‘Buy and Stake for XXX% Rewards’.

On that page you can select how many tokens to stake and for how long, with staking open throughout the ICO and beyond.

Step 6: Claim Tokens

The final step of an ICO is to claim tokens when the presale is complete and transfer them into your wallet.

Generally, near the end of an ICO the project will announce to investors a claiming date and time, with tokens to be held securely on the website until the token generation event (TGE).

To claim, investors return to the website at the correct time, select claim at which point that can be transferred across the Ethereum network – for example to an exchange to sell.

What are ICO Tokens?

Before cryptocurrencies are listed on exchanges, they usually go through an initial coin offering (ICO). In simple terms, this enables investors to buy the startup’s new cryptocurrency token before it is sold to the public. 

Crypto ICOs are a win-win situation for both investors and blockchain startups. 

• For crypto startups, this enables the project to raise capital from investors to help fund their operations.
• For crypto investors, this enables them to buy the ICO tokens at a discounted price – as an incentive to invest early. 

ICOs are very similar to initial public offerings (IPOs). For instance, those that invested in the Tesla IPO in 2010 received shares at a preferential price. The Tesla shares were listed on the NASDAQ exchange after the IPO and have since gone on to generate significant gains. 

This is much the same as how ICO works. For example, those investing in the Ethereum ICO in 2014 would have paid just $0.31 per token. Since then, Ethereum has hit highs of nearly $5,000. This translates into gains of over 1.5 million per cent. 

As we unravel in more detail later on, Ethereum isn’t the only ICO token that has generated huge returns for early investors. On the contrary, there are plenty of other success stories. 

Are ICO Tokens the Same as Other Cryptocurrencies?

There are many terms used in the cryptocurrency investment space, and some are used interchangeably. For example, ICO tokens refer to newly launched cryptocurrencies that are in their fundraising stage. As such, ICO tokens are also referred to as cryptocurrencies.

• Both ICO tokens and cryptocurrencies are backed by blockchain technology. 
• For example, XRP is backed by the Ripple blockchain.
• Some cryptocurrencies have their own native blockchain. 
• In this instance, the cryptocurrency is defined as a ‘coin’. 
• Bitcoin, Cardano, Litecoin, and many others have their own blockchain. 

In other cases, cryptocurrencies will build their ecosystem on a legacy network. For example, thousands of cryptocurrencies operate on the Ethereum blockchain, and these are known as ERC-20 tokens. 

There are also thousands of cryptocurrencies listed on the Binance Smart Chain, and these are known as BSC tokens. 

In other words, if a cryptocurrency is built on a legacy blockchain, they are referred to as ‘tokens’ rather than ‘coins. This is the case with the vast majority of ICO cryptocurrencies. 

Why Invest in ICO Tokens?

Below, we discuss some of the reasons why seasoned investors are constantly searching for the best crypto ICOs. 

Discounted Entry Price

Crypto ICOs typically incentive investors with an attractive entry price. This means that the investor will buy the ICO token before it is listed on a crypto exchange. 

Once again this is similar to IPOs, as the shares will be sold at a discount before they hit a stock exchange.

Small Market Capitalization 

Crypto ICOs generally seek to raise a modest amount of capital. At least when compared to IPOs.

After all, the top 100 cryptocurrencies by market capitalization currently range from $400 million to over $570 billion. 

This means that ICO tokens can offer early investors a huge upside potential. While it can take time to see sizable gains, long-term investors often see the best investment results. 

That said, Shiba Inu, which was launched in mid-2020 – took just one year to become a billion-dollar cryptocurrency. This is also the case with other ICO tokens that were able to create hype and FOMO (Fear of Missing Out). 

Invest in New Ideas and Concepts

The Ethereum ICO was hugely popular with investors, largely because of its ‘smart contract’ concept. This took blockchain and cryptocurrencies to the next level, with previous networks focusing exclusively on payments. 

This is the case with many ICOs, which offer solutions to real-world problems. Crucially, the best ICO tokens are those that bring a new idea or concept to the market. This gives the token the best chance possible of going mainstream and generating attractive returns for early investors. 

Easy to Diversify

Crypto ICOs are increasingly becoming popular with new blockchain startups. This means there are plenty of opportunities for investors seeking above-average returns.

However, ICOs are also risky, considering they are backed by new and unproven concepts. That said, investors can consider diversifying into lots of different ICO tokens to help reduce the risk. 

This means that instead of investing $1,000 into one ICO, the funds could be split across 10 different projects at $100 each. In doing so, only one of the ICO tokens purchased needs to go mainstream for the investor to witness sizable growth. 

What are the Top Tokens to Buy Now?

New ICO tokens enter the market on almost a daily basis. This makes it challenging to assess the best crypto to buy.

Below, we help clear the mist by discussing some of the best emerging cryptocurrencies currently available at ICO prices. 

Bitcoin Minetrix 

Bitcoin Minetrix (BTCMTX) is a new stake-to-mine crypto that offers cloud mining credits. 

Bitcoin Minetrix offers cloud mining – where an individual or group rent mining power to earn BTC – but with a difference, as it is Web3’s first stake-to-mine project and tokenizes the process.

Doing it that way means added safety and security for Bitcoin Minetrix investors, with no need to take out expensive and fixed-term contracts with other cloud mining firms, many of which have turned out to be scams, and total control over their token holdings.

The process is also simple – purchased BTCMTX can be staked with the staking rewards generating cloud mining credits, a non-transferable ERC-20 token, which can then be burned to generate mining time.

Mined BTC is then transferred to the staker’s wallet, with the whole process managed by a dedicated Bitcoin Minetrix app, which is currently in the late stages of its development.

The process also gives greater autonomy to users that cloud mining contracts, as they can choose how many tokens to stake, how long to stake for and unstake and sell them on the open market at any time.

BTCMTX can also be staked simply for token rewards, with the current APY over 70%. At the time of writing, $BTCMTX is priced at $0.013 per token. Since the start of the presale, Bitcoin Minetrix has raised more than $9.4 million. 

For more info on the project, read through the BTCMTX whitepaper or join the Telegram group.

Sponge V2 

The next cryptocurrency on our list is Sponge V2 ($SPONGEV2) – an upgraded version of the Sponge token. In 2023, Sponge emerged as one of the top meme coins – soaring from a $1 million market cap to nearly $100 million in a few months. 

Now, the platform creators have decided to upgrade the token by offering additional earning opportunities. Usinng the stake-to-bridge mechanism, Sponge will allow token holders to bridge to the Sponge V2 smart contract. Those currently holding Sponge V1 tokens can stake their holdings on the newly launched V2 smart contract. Doing so rewards you with an equal amount of $SPONGEV2. 

Your Sponge V1 tokens will be permanently locked on the V2 smart contract – and will offer annual yields for the next four years. Furthermore, the new staking contract promises to offer huge APYs – currently standing at 270%. Nearly 6 million tokens have already been locked on the smart contract. 

According to the Sponge V2 whitepaper, the platform is also developing a new play-to-earn racer game. This will allow token holders to compete in an online competition. The top performers will be rewarded with $SPONGEV2 tokens. In total, Sponge has a total supply of 150 billion – more than half are being offered through P2E gaming and staking rewards. 

Currently, the stake-to-bridge mechanism is the only way to access the new token. However, $SPONGEV2 will be listed at a price of $0.000025 on exchanges. For more information, join the Telegram channel. 

Meme Kombat 

The next new initial coin offering is of a multi-utility meme ecosystem called Meme Kombat ($MK). On Meme Kombat, users can take part and wager on a battle arena, which combines the thrill of meme coins with gaming opportunities. The battle arena will feature several meme coin avatars that will go head-to-head in battle. $MK token holders can stake and wager their tokens to predict the outcome of these battles. 

Through the Player vs Player mode, you can even challenge a friend and wager tokens. The rewards include free $MK tokens and exclusive prizes. According to the Meme Kombat whitepaper, the first season of the battle arena will kick off after the presale ends. It will feature staking and betting opportunities and slowly expand over time. 

The project and the CEO have been doxxed, a rarity for most meme coin projects. Furthermore, 100% of the 120 million token supply has been allocated for the public. 60 million tokens are available for the presale, while another 30% of the supply will be distributed through staking and battle rewards. Meme Kombat will offer a further 10% of the supply through community rewards. 

The remaining 10% will be used for DEX allocation. Currently, $MK is priced at just $0.279 on presale. Since the start of the presale, Meme Kombat has raised more than $7.4 million. The token can also be staked to earn APYs as high as 125%. 

Stay updated with this meme coin by joining the Meme Kombat Telegram channel. 

eTukTuk

eTukTuk ($TUK) is a new cryptocurrency ICO that is promoting EV (Electric Vehicle) adoption among TukTuk drivers in developing nations. $TUK, the native token, is available to buy on ICO. The token can be used as a payment option to charge your EVs, staked to earn rewards, and offered as rewards for maintaining charging stations. 

eTukTuk notes that over 270 million TukTuks operate using ICEs (Internal Combustion Engines) – which contribute to air pollution, and are going obsolete as a result. Furthermore, the increase of gas prices in countries such as Sri Lanka is stopping TukTuk drivers from making a minimum wage. 

eTukTuk will start building charging stations and zero-emission vehicles in urban and suburban areas of these developing countries. The stations will be installed and operated by local territory partners – a cheaper option than sourcing from international markets. 

According to the eTukTuk whitepaper, the entire process will allow TukTuk drivers to take home an additional 400% in revenues. The drivers can make payments on the charging stations with $TUK through a drivers app. A percentage of the revenue earned will be given to the territory partners. 

Finally, $TUK token holders can stake their tokens into power nodes and maintain the network. Staking $TUK can lead to APYs as high as 380%. Currently, $TUK is priced at just $0.026 on presale – and has raised more than $560K. This ICO allows you to purchase a multi-use token for a potentially discounted price ahead of the initial exchange offering. 

Join the eTukTuk Telegram channel to stay updated with this cryptocurrency. 

How to Find the Best ICO Tokens to Buy

Not all ICO tokens go on to become successful, so investors will need to conduct plenty of independent research. The most important factors to consider include the project’s concept, the utility of its token, and how realistic its roadmap objectives are. 

Let’s explore some of the most effective ways to find the best ICO tokens to buy:

Concept of the Project

A good starting point when exploring how to buy ICO tokens is to read the project’s whitepaper. This will reveal the concept of the project and what real-world problems it aims to solve. Ultimately, the most successful ICO tokens offer something innovative and new. 

Utility of the Token

While there are thousands of tokens in the market, many do not have any use cases. ICO tokens that fall into this category will rarely witness long-term growth. 

Instead, it’s better to focus on tokens that have an actual utility within the project’s ecosystem.

If an ICO token has utility, this increases the likelihood that people will buy it. In turn, increased buying pressure can lead to price appreciation of the token – benefiting early investors.  

Roadmap Targets

The best ICO projects offer a detailed and trackable roadmap. This is usually found in the project’s whitepaper. Investors should evaluate how realistic the roadmap targets are. Moreover, each target will have an anticipated completion date. 

This enables investors to assess whether or not the project is on course. When ICO projects meet their stated targets, this increases trust from the broader markets. But when targets are missed, this has the opposite effect. 

How to Buy ICO Tokens Safely & Avoid Scams

The unregulated nature of cryptocurrencies means that investors need to be cautious when learning how to buy ICO tokens. Put simply, just because an ICO claims to have developed an innovative solution to a real-world problem, this doesn’t mean that this will come to fruition. 

Many crypto startups fail to meet their targets, with investors never seeing the final product or service. This is why research is so important. 

Another risk associated with ICOs is a rugpull. This happens when the team behind the ICO suddenly disappears, taking investor funds with them. This leaves ICO investors with worthless tokens. 

So what steps can ICO investors take to remain safe? First and foremost, it is important that ICO investors only risk what they can afford to lose. There is no guarantee that the ICO will be successful, so investors can lose some or even all of their investment. 

Second, it is crucial to avoid putting all investment funds into one ICO. Instead, consider diversifying across many different ICOs from multiple niches.

It is also important to use a suitable crypto wallet when investing in ICOs. This will ensure that the ICO tokens purchased can be stored safely. Ultimately, ICOs are never risk-free, so investors should tread with caution. 

Conclusion

While ICOs can be risky, the investment returns can be significant. This is because ICOs enable investors to buy newly launched tokens at the lowest price possible. If the project is successful, this can yield sizable returns for early investors. 

Overall, Bitcoin Minetrix ($BTCMTX) is the top ICO right now. The stake-to-mine cryptocurrency is decentralizing the cloud mining process by offering tokenized cloud mining credits. Investors can stake the token and earn up to 70% in APYs. 

The Bitcoin Minetrix presale has raised more than $9.4 million.