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Investing Fiat Money into an ICO. Three Easy Steps for Your Dollars to Turn Into Tokens

We have analyzed the methods of purchasing tokens for fiat money and have selected the best one. Make three easy steps and your dollars or euros will turn into tokens. Read the article to get an instruction with photos and examples.

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Cryptoassetsrank.com Published on Aug 06, 2018
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We have analyzed the methods of purchasing tokens for fiat money and have selected the best one. Make three easy steps and your dollars or euros will turn into tokens. Read the article to get an instruction with photos and examples.

Step 1. Create a cryptocurrency wallet

There are two types of cryptocurrency wallets: cold and hot storage wallets. Cold wallets are used for a long-term storage of coins, hot wallets — for purchase and sale of cryptocurrency. For investment into ICOs you need hot wallets. They are of three types.

Selecting a wallet

A web wallet is for managing a cryptocurrency account via a browser. To create such a wallet, you need to visit the website and register. Investors use web wallets for operations with small amounts of money because they are not safe.

Examples of web wallets: MyEtherWallet, GreenAddress, Coins.ph, QuadrigaCX, Coinbase, Bittrex.

Advantages

  • multiple currencies and integration with cryptocurrency exchanges;
  • anonymizers and VPN can be used.

Disadvantages

  • the coins are stored on the web service server;
  • weak protection from phishing, DDOS attacks and fraud.

A mobile wallet is for managing the account via a smartphone and a tablet. It is similar to a web wallet but instead of a browser a mobile application is used.

Examples of mobile wallets: CoPay, Coinomi, BreadWallet, Jaxx, Mycelium.

Advantages

  • more user-friendly than other wallets;
  • scanning QR codes, fingerprint authentication, SMS activation.
  • anonymizers and VPN can be used.

Disadvantages

  • the coins are stored on the web service server;
  • weak protection from fraud, phishing, hacking, DDOS attacks.

A desktop wallet is for managing the tokens from PC. To do that, you need to install a program either in its complete version — it will download all the blockchain platform chain, or its light version — it will install a minimal distributive.

Examples of desktop wallets: Exodus, Bitcoin Core, MetaMask, Mist, Armory, Multibit.

Advantages

  • tokens are stored on the user’s PC;
  • any safety measures can be set up;
  • anonymizers and VPN can be used.

Disadvantages

  • a long installation: Ethereum chain is 650 GB in size;
  • whenever you open it, time is required for synchronization — downloading new blocks of the blockchain.

Registering an Ethereum wallet

Since 80% of all ended ICOs were launched on the Ethereum platform, let us use the registration and installation of an Ethereum wallet as an example.

Stages of registration of an online Ethereum wallet:

  1. Go to the website: www.myetherwallet.com.
  2. Think of a password consisting of not less than 9 symbols and enter it.


  3. Download a keystore file and click on “I understand. Continue”. The keystore file is an encrypted version of your login in blockchain. To access your wallet, you need to use it together with the password.


  4. Copy or print the Private Key. It is a non-encrypted version of your login. Click on “Save Your Address”.


  5. Select one of the authorization methods: you downloaded the Keystore/JSON File at step 3 and you saved the Private Key at step 4. Use one of these methods and enter the password that you created at step 1. Click on “Unlock”.


  6. Scroll down to see the address of the wallet you have created and the registration data. The wallet address is like a number of your bank account. Use it to receive and send the coins.


Step 2. Buying cryptocurrency for dollars and euros

There are 4 ways of buying cryptocurrency for fiat money: 

  • online exchange sites;
  • cryptocurrency exchanges;
  • P2P platforms;
  • terminals.

Online exchange sites

It is the fastest and most convenient way to buy Ethereum for USD because the exchange sites do everything automatically and do not require registration. At such sites you can buy cryptocurrency using your bank account or digital payment services: Paypal, E-Gold, Skrill, Payza.


Solid
Changer
Changelly Indacoin Coinmama Alfa
Cashier
Entry Currency USD USD, EUR USD USD, EUR USD, EUR
Min. Deposit No No No No $40  
Visa/ MasterCard Yes Yes Yes Yes Yes
Fees Average Low Average Low Average
Available currencies ETH, DASH, LTC ETH, BTC, BCH ETH, BTC, BCH, MIOTA ETH, BTC ETH, BTC, BCH, BTC, XRP, LTC


Advantages

  • it takes 3-5 minutes to buy Ethereum;
  • a vast choice of payment services;
  • no verification;
  • anonymizers and VPN can be used.

Disadvantages

  • fee — 5-7%;
  • exchange rate is lower than the market rate;
  • a lot of phishing websites that imitate popular exchange sites;
  • weak protection from hacking, DDOS attacks.

Cryptocurrency exchanges

These are Forex counterparts for the cryptocurrency market. Cryptocurrency exchanges have high safety standards and low fees, that is why most cryptocurrency is bought for fiat money at them. 


Bitfinex BitSane EXMO LiveCoin CEX.io
Min. deposit $10,000 €10 0.001 BTC No $100
Entry currency USD, EUR USD, EUR USD, EUR USD, EUR USD, EUR
KYC verification Full Required for  bank transfers Not required Not required Full
Interface Complex Simple Simple Average Simple
Visa/ MasterCard Yes No No Yes Yes


Advantages

  • fees — 2-5%;
  • a lot of cryptocurrencies available for purchase;
  • safer than exchange sites;
  • anonymizers and VPN can be used.

Disadvantages

  • a limited amount of payment services;
  • a long registration, verification is required;
  • a complex interface if you are a novice.

Person to Person exchanges

On P2P exchange sites the users buy cryptocurrency from each other. If the coins are bought using payment services, the exchange is done via a P2P site. If Ethereum is bought for cash in dollars, the parties meet offline. 


Cointal Bitkan LocalEthereum
Entry currency USD Any fiat currency Any fiat currency
Min. deposit $10 No No
Available cryptocurrencies ETH, XRP, BTC, LTC ETH +14 other coins ETH


Advantages

  • negotiated exchange rate;
  • service fees — 0.2-1%;
  • simple interface;
  • no verification.

Disadvantages

  • a lot of scammers because it is easy to get a high rating by creating several wallets;
  • the exchange takes a lot of time;
  • there can be no counterparty in your region.

Since there are a lot of scammers at P2P sites, read the instruction on how to buy Ethereum for cash with minimal risk. Look for such tips in the FAQ section.

Payment terminals

It is the simplest way to purchase Ethereum with cash. To make a purchase in the terminal, you need a Private Key that you received at step 4 of Ethereum wallet registration.

Advantages

  • reliability: installation of the terminals is monitored by the state;
  • a familiar interface;
  • no verification.

Disadvantages

  • high fee – 10% and more;
  • for purchase you need to use the wallet address and Private Key in a public place;
  • not all terminals support cryptocurrency purchase.

Step 3. Investing Ethereum in ICO

Select a project you like from our ICO rating by convenient filters: availability of free token distribution, purchase for fiat money and others. We have selected the Iagon startup as an example of token purchase.

How to buy ICO Iagon tokens:

  1. Register at www.iagon.com.
  2. Click on the icon “BUY IAG TOKENS”.


  3. Go to KYC/AML section and enter the Ethereum wallet address received at step 6 of the registration.


  4. Undergo verification using one of the methods below.


  5. Go to the “Token Sale” section. Here you will receive an address for transferring Ethereum to the ICO founders. Use it on the website www.myetherwallet.com to transfer the required amount from your wallet to the startup wallet.


If the ICO is popular, you can receive coins with a delay because of an influx of investors. This happens in the first day of the initial coin offering and before its end. A usual delay is 2-5 days.

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