In 2013 we saw the first ICO and they became popular in 2017 raising more than $6 Billions.
ICO stands for Initial Coin Offering. Is a fundraising mechanism when company’s tokens are sold in return of current cryptocurrencies. Usually Bitcoin or Ethereum. The investors purchasing the company’s crypto coins (future cryptoccurencies) that will grow in value in the case of the project’s success.
Pre-ICO opens before ICO. Therefore the investors can purchase the company’s tokens at a discounted price and start supporting the project from the very beginning.
You can use tokens for utility, store of value or even pay dividends. Many investors trying to make a profit by selling the tokens on exchanges.
Different ICOs have different registration processes. Sometimes they giving you contribution address and not asking for anything else. Other times ICOs asking for KYC (Know Your Customer) and you have to provide an ID.
All you need is a cryptocurrency wallet. Finally when the ICO ends the tokens are transferred to your crypto wallet.
We advise you, first to read the ICO agreement to understand how the token sale works and any additional rules that may apply. There are many scam ICOs, therefore you need to do a good research before. Here you can find our article about scam ICOs and how to recognize them.