An IDO (Initial DEX Offering) can be a life-changing experience. However, it may be challenging to take part in one.
How can you find these low-cap gems, and where do you need to look for an IDO? It’s not that hard. Follow some easy and basic steps, and you should be fine.
IDOs provide decentralized fundraising, offering immediate trading, liquidity, and fair price discovery without a central authority.
Users can participate in an IDO directly through their crypto wallet 💳
👉 https://t.co/3Ib3tK4n8s pic.twitter.com/x9jxVRot8x
— Binance Academy (@BinanceAcademy) January 17, 2024
How to Prepare for an IDO
IDOs often allow you to buy tokens at a lower price. The IDO price is set before the token is available on the open market. But, before you can get into an IDO, you need to prepare yourself.
1) Take part in an IDO
You can do this by installing a wallet. For EVM chains, that would be, for example, a MetaMask, Rabby, or Rainbow wallet. However, there are plenty of other options available, like the XDEFI or Trust wallets. If the IDO takes place on a different chain, make sure to have a compatible wallet for that chain. On Solana, that could be a Phantom or Solflare wallet.
If you don’t have such a wallet yet, make sure to download one. These are all non-custodial wallets. In other words, you’re in control of the assets in these wallets. You will need such a wallet, since for presales like this, you need to interact with an app. These are either websites or launchpads.
2) Find an IDO
For this, you can use tools like ICO Drops or Cryptorank. These platforms keep you informed about IDOs and ICOs (Initial Coin Offerings). For example, they show you active, upcoming, or IDOs that have already ended. Furthermore, they show you the launchpad’s ROI. Another great resource is Crypto Twitter or X. The picture below shows the Cryptorank UI.
Source: Cryptorank
3) Follow Social Media / Fund Your Wallet
Following social media is of importance, once you find an IDO that suits you. There’s a simple reason for this. Each launch is different. The various projects will most likely all have different launch details. It’s your task and responsibility to have the correct information about these details.
The majority of projects will use their social media to announce where and how they launch. This gives you time to prepare accordingly. For example, they will announce the website or launchpad. Now you can visit the launch platforms and find out more details. For instance, you may need to pre-register.
This is when you will need your non-custodial wallet. You will need to:
- Connect your wallet to these websites or launchpads. They should offer information on how much your minimal or maximal buy-in can be.
- Fund your wallet. Make sure you have the correct crypto asset to buy in with. Most likely, this will be a stablecoin, like USDT or USDC. However, it can also be the native launchpad token. Make sure to have some extra funds so you can pay the gas fees.
- Find out what the requirements are. Do you have to register with a Launchpad? Or is it good enough to register on the projects’ website? If the sale is on a launchpad, make yourself familiar with the launchpad’s house rules. Each launchpad can have different rules. However, most of them require you to hold their native tokens. If that’s the case, buy them on an exchange and add them to your wallet. You may need to lock or stake these native tokens on the launchpad.
🌀 Process:
1. Project appeals to a platform/launchpad.
2. The project has to meet the launchpad's requirements.
3. Investors purchase IOUs for the token. (at a discounted price)
4. The token is received during the TGE.
5. Immediate listing of the token on the DEX / CEX.
— zaimiri ✏️ (@zaimirii) January 17, 2024
Prepare for Launch Day
Signing up for an IDO doesn’t guarantee you a spot in the sale. Most of these IDOs have too many people joining. This makes them oversubscribed. There will be a draw and hopefully, you get in. Once you receive an email or other way of confirmation, you’re good to go. Now you can start preparing for participation day. The sale opens at a specific date and time. You need to:
- Connect your wallet and send funds to the site or launchpad. Nothing may happen, so don’t start to panic. You took part, and that was the most important part at that moment. There’s still nothing to claim. Participation day and launch day can be on two different days.
- Wait for the TGE or Token Generation Event. That day, the tokens get listed on CEXes and/or DEXes. That’s also the day that you can revisit the website or launchpad. Now you can claim your tokens. Be aware that you may not receive all the tokens at once. You may have to visit and claim a few times.
Now you have the tokens in your wallet. It’s up to you now if you want to hold them or sell them.
17/ Final tip?
Use an excel file to keep track of everything.
Write down where the sale takes place.
Write down when the registration date open.
Write down when the participation date opens.
Write down what you need (200 USDT for example).
You'll need this.
Nova out 🤝
— Crypto Nova (@CryptoGirlNova) January 13, 2024
Conclusion
IDOs can give you a life-changing experience. However, you need to prepare yourself. Finding low-cap gems and IDOs is not as hard as it looks. We described the steps to find IDOs and low-cap gems and how you can take part.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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