Participation in Initial DEX Offering (IDO) is becoming an increasingly popular way to invest in cryptocurrency startups. IDO allows investors to buy tokens at an early stage, which can significantly increase profits if the project is successful. Let’s look in more detail, step by step, how to participate in such token sales and where to look for upcoming crypto projects.
What is IDO
IDO (Initial DEX Offering) is an initial token offering on decentralized exchanges (DEX). Unlike traditional IPOs or ICOs, IDOs take place on specialized platforms where tokens are issued immediately and actually sold directly to investors. This process eliminates intermediaries, makes it faster, more accessible, and allows to raise funding for a crypto project through the sale of its tokens.
How to select an IDO project
To participate in an IDO, you first need to choose a platform. Among the most popular ones; Polkastarter, Bounce, DAOMaker or Seedify. Each of them has its own peculiarities, rules for placement and rules for participation in token sales.
It is crucial to realize that before choosing an IDO project directly, it is important to prepare by following key steps:
- Researching the project. Familiarize yourself with the project’s whitepaper, which describes the goals, technology, and economic model of the token. This will help you understand whether it’s worth investing your money.
- Team validation. Make sure the project team consists of professionals with proven experience. Research their profiles on LinkedIn and GitHub.
- Community Analysis. Check the activity of the project community on social networks such as Twitter and Telegram. This will help you understand how much interest there is in the project.
This way you will significantly reduce potential risks and at the very least – it will help you make a better decision.
- Then, you need to connect your cryptocurrency wallet to the platform. The most commonly used is MetaMask, Trust Wallet. Some platforms can integrate their own wallets as well, so pay attention to this factor in particular. Make sure you have enough funds in your wallet to buy tokens and pay commissions.
- Complete the verification (KYC) procedure if the platform requires it. This approach solves the problems of possible fraud, protecting all users and investors.
- Move to the desired section – Ongoing IDO or Upcoming crypto projects and select the right one from the list.
- According to the platform rules, you need to wait for the launch of the IDO and wait for its end. As a rule, launchpads issue tokens, so the main condition for participation in IDO is to buy and hold these tokens.
- If the IDO is successful and you are eligible for allocation, IDO project tokens will be transferred to your balance automatically, but only after you click Claim.
Where to find upcoming crypto projects
Let us remind you that serious platforms carefully check developers, guaranteeing users the safety of the crypto project. And many trackers and services additionally conduct thorough checks before adding crypto startups to the lists of quality ones. As an example, CryptoTotem is one of the largest platforms, which gathers a lot of successful crypto startups that hold or plan to organize token sales.