What is an (Tron) ICO?
Before a project (token) can start, money must first be collected to finance the project (a kind of crowdfunding). This is called the ICO-Phase. ICO stands for an Initial Coin Offering. U can describe it the best as a fundraising mechanism in which new projects sell their crypto tokens in exchange for TRX (Bitcoin or Ethereum). If u participate in an ICO u will help a project gather the funds for launching their product.
A ICO starts with a pre-sale, allowing early adopters to buy their tokens with a discount. The TRX that is raised by selling their tokens will be used to pay for the costs of developing their product or project. Tokens in the pre-sale are often sold with discounts and promotions actions like airdrops. Which makes it for investors a great, but risky opportunity.
Before u decide to invest an amount of TRX in a Tron Project make always sure that u do some research about the project. If u want to know more about the business plan, it’s great to start by reading the whitepaper, checking their website and team and joining their telegram. A good article that will help u determine to find a way about filtering the ‘red flag’ projects from the ‘green flag’ ones is this article.
Please note: Investing in ICO’s can be risky. Not all projects have good intentions, or gather enough funds to be able to start the project. Therefore it’s always important to take the time to research the project and ask critical questions to the team members.
What do I need to buy tokens from a new project?
- A Tron Wallet: First of all u need a Tron Wallet, where u can savely store your TRX and all other supported Tron Tokens, TRC10 & TRC20. U could use for example your GoSeedit Wallet from Telegram, make a new Wallet on Tronscan or download the TronWalletMe app on your tablet or phone and use this wallet. U can read everything about Tron Wallets here.
- The Private Key of your TronWallet: The private key is your password for your Tronwallet. It will give u access to all your funds, so u can withdraw and send them to others. That’s why u never give your private key to anyone, so no one can access your funds. Make sure u always backup your private key in a safe way. For example on extern harddisk, or print it and safe it in a vault.
- TRON (TRX): And last off course u will need funds to buy the new tokens so u can participate in the crowdfunding of a project. Since Tron uses her own blockchain network, it’s for now only possible to buy tokens with TRX and not with Bitcoin. U can buy Tron on a exchange, read our guide here.
How do I buy an Tron ICO on Tronscan?
Step 1: Login on Tronscan
Go to the website of Tronscan by clicking on this link and login in your Tron Wallet.
Click in the upper right corner on ‘Sign in”, choose ‘Import a wallet’ and submit your ‘Private key” and click on “Sign in’ again. U can also login by using Tronlink or Ledger.
Step 2: Select a token and check the Token ID.
Use the search button to search on a token name or token ID. Or click on “Tokens” and next on “Participate” to get an overview of the complete list of closed and open Tron ICO’s. Scroll down till u have found the project that u are looking for and click on the name to open the token page.
Please note: Since it’s in the Tron Network possible to have tokens with the same double check if you’re on the right Tronscan page by checking if the token ID matches. U can ask the token ID in the telegram channels. Once u clicked on the project, u will get a overview with all the token information, from price till the website till the social media channels.
Step 3: Click on participate
In the right menu, next to the token name and subscription u see two buttons ‘participate’ and ‘update token’. Click on the button ‘participate’.
Step 4: Choose the amount
A popup will open with the question “How much tokens do you want to buy?”. Choose the amount of tokens u want to buy, and it will calculate the cost of this in TRX. Submit the amount of tokens and click on “Participate”. Make sure u have enough TRX in your wallet to proceed with the transaction.
A new popup will open with a double-check: “Are u sure you want to buy?” check if this information is right and click on ‘Confirm”. After clicking on confirm the transaction will take a few seconds, if the transaction is finished u will get this message.
Step 5: Check your token balance
The transaction has been confirmed. Click in the upper right menu on “Wallet” and then “Account” and u will get an overview of your wallet of all the tokens in your wallet. U will see in the transaction overview that the tokens have been send to your wallet and that a new token balance has been added to the overview.