ICO Trading is nothing but the trading of tokens that the investors bought at the time of the Crowdsale. The main objective of the investors is to triple or quadruple their investment within a short time. They don’t give much thought into the long run of the project most of the time. ICO has become one of the most popular modes of investment and since it is less rigid and cumbersome than the IPOs, the participation has only increased. The first step in participating in an ICO is to have a look at the ICO listing. This is a list that provides details on the coin offerings going on, offerings that are about to happen and that are already finished. There are specific symbols assigned to each ICO so one can easily understand the current status.
ICO is conducted to raise capital for new projects. One can say that ICOs are mainly token generation events. The project creators give crypto tokens to the investors in return for Bitcoins or Ethereum coins which they use to build the new project with. This crypto token is made with reference to the ERC-20 protocol, developed by Ethereum to enable smooth flow of smart contract transactions. These tokens are then used in ICO Trading. The investors trade them for the already existing cryptocurrencies such as Bitcoin.
ICO Trading is the main objective of the investors. Most of them do not wait for the project to be successful and then get returns. The people interested in participating in an ICO registers themselves on ethereum platform and get their own wallet address. At the end of the sale, every investor gets their own share of crypto tokens. These tokens are then exchanged by the investors for a more profitable crypto currency. The ICO Trading process has to be done with utmost care as there are large amount of fraud sites function among the legit ones.
The users have a certain amount of crypto token with them in the wallet. These tokens are traded in exchanges that accept the tokens. The most important thing is to find exchanges that offer high price in exchange for the tokens. Some of the most famous of the crypto token exchange sites are Bittrex, Poloniex and Kraken. The user has to go through all the sites and find the one with highest price. It is preferred to carry out ICO Trading in exchange sites that are most widely used rather than the newly emerged ones. Scamcoins are also highly present in such sites, so the users have to be cautious of those. ICO Trading has resulted in coin dump, which occurs due to the reasons such as users wanting quick returns. So, they trade the tokens over the first phase of the starting of the project without waiting for the returns they get from it.