How to start token purchase?
Written by Polina Aladyina
Updated over a week ago
There are no strict rules for avoiding risky ICOs.
Crypto assets are still new and unstable. Never put all your eggs in one basket. Diversifying your assets will help to diminish losses from hacks. The safest way to store funds is in a decentralized wallet. You can read more about Orderbook's security here.
1. What are cryptocurrencies?
Cryptocurrencies are digital assets based on cryptography. Cryptography is used to decentralize transactions. It also has the potential to ensure confidentiality.
Blockchain fundraisers want to sell as many tokens as possible. Tokens have many different uses, depending on the type of token. The two main token types are Utilities and Securities. Donors use the tokens they obtain in a variety of ways. Some tokens are used to pay the ICO project for goods and services. Others are like equity, and holding them results in profit dividends. You can also sell tokens via exchanges as they rise and fall in value.
2. How can I prevent losses?
Your own attention and ingenuity are your best allies. Try to avoid fraud and phishing. Explore the project in detail. Be sure you understand the project's white paper. Don’t risk more than you can afford to lose. No one knows how successful an ICO will be. Nor do they know how popular a project will become after it launches.
ICO participation is always a risk. The more you know before donating, the likely you will be to incur losses. Read more about safety in the Blockchain space here.
3. What is the best place to keep my savings securely?
Without a doubt, decentralized platforms are the best choice for secure storage. They guarantee much greater security than centralized platforms. You can read more about decentralized exchanges here.