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What is an ICO and how to finance a project?

We have heard about ICOs for years , but why have they become so popular now? Along with the appearance of cryptocurrencies, ICOs have begun to play a fundamental role, since they are closely linked to them.

Index of contents

  • What is an ICO?
  • What are ICOs for?
  • What advantages do ICOs bring us?
  • How to finance a project with an ICO?
  • Are ICOs safe?

Index of contents

  • What are ICOs
  • How to use ICOs
  • Advantages of ICOs
  • Fund a project based on Blockchain
  • ICO security

What are ICOs

ICO is the acronym for Initial Coin Offering , that is, Initial Coin Offering , therefore, ICOs have to do with the financing of a business project . Actually, its main objective is to finance the birth of a new cryptocurrency .

Cryptocurrencies, as we have already explained in other posts, are virtual tokens protected by a cryptography system. These cryptocurrencies are used to make payments or store value . The “mining” is the process by which these virtual currencies are created.

When deciding to create a new criptodivisa, the first thing you have to do is design it , once we have the design done, this is i ntroduce through a software on the network. Finally, this software is made available to the community so that the miners that support its activity appear.


As expected, this entire process has a cost, and a good way to finance projects of this type is with ICOs. What the developers do is start with a closed-door pre-mining and offer this new currency that they have created in exchange for other currencies that are already in circulation, such as the Bitcoin that was the first. Therefore, for us to understand, an ICO is to offer initial investors the new currencies in exchange for money.

This process could be comparable to crowdfunding , since those who finance a project are a community of users without the need for intermediaries.

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How to use ICOs

Without a doubt, the main objective for which the creator of the token decided to conduct the first ICO was to raise money . A clear example is Ethereum, which managed to raise $ 18 million.


But on the other hand, we find those who participate economically in ICOs. These, what they want is to profit, since normally, cryptocurrencies rise quickly in price. In addition, the initial participants of a project have a greater chance of obtaining benefits.

Advantages of ICOs

One of the main advantages of ICOs is that financing is not obtained by traditional methods such as banks or venture capital investors, therefore, conditions will always be better .

As for individual investors , they have the opportunity to finance highly innovative companies directly . This is a good thing, since traditional financing methods are usually only available when it comes to a large amount of capital, and not for smaller amounts. This is due to the risks and legal issues that come into play.

Fund a project based on Blockchain

It is important to note that an ICO not only serves to finance the creation of new cryptocurrencies, but also to finance projects based on the Blockchain or the chain of blocks .  

The Blockchain is a system that allows all the information to be securely encrypted and only shared between the parties linked to the transaction to be carried out, in order to record the economic transactions that have been carried out with the cryptocurrency.


In the beginning, the blockchain was only used for the creation of virtual currencies, however, today it can be used for multiple tasks, such as performing cloud computing , managing copyrights , as well as storing and modifying data in a secure and verifiable way.

However, whenever you want to use Blockchain technology for a special use, there must be an associated currency for it to be carried out. Normally, these coins are called tokens , to avoid that this project is confused with the creation of a new cryptocurrency. Therefore, an ICO can be created to finance the project, exchanging these pre-mined tokens for money. These tokens can also be used within the same project to make payments for specific services.

Therefore, we already see that ICOs will both serve us to finance the creation of new cryptocurrencies and projects created from the Blockchain system or chain of blocks.

ICO security

As it is an innovative system and with little travel, we can still talk about some risks when deciding to participate in an ICO, such as that the project does not go well and the coins that are given in exchange for money that has no value.

Another risk that is run is that the security of the cryptocurrency is not correct and someone manages to hack the system and steal the money. An example of cases like this was that of DAO, in which they managed to steal more than 150 million dollars from investors.


It is also important to bear in mind that these types of operations are not legally regulated, but are outside the conventional financial system. This is a problem that is being struggled to solve, since they are beyond the reach of governments and this means that they do not have control of money or taxes. Not long ago, Korea was considering the possibility of banning cryptocurrencies. This lack of regulation has opened numerous debates about whether ICOs and cryptocurrencies are an illegal system, but for now, it is still in operation and there are many who decide to invest through this method.

Are you interested in the financial sector? Then you may be interested in the Master in Blockchain and Fintech with which you will know the bases of these new payment and financing methods, to apply them within any business.

Other articles that may be of interest to you:

  • How to finance your startup with an ICO and BlockChain: The PayPro case
  • How to invest in bitcoins? Complete guide for dummies
  • The 10 cryptocurrencies (or cryptocurrencies) to invest in 2018

Master in Blockchain and Fintech

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How to Create Account in EXMO step by step

In this article you will learn how to register in EXMO in 2022, as you well know it is a cryptocurrency platform to trade, as well as buy and sell digital currencies. Next, we are going to make you a quick and easy guide to create your account.

How to open an account in step by step

Access the official website of EXMO to be able to register for free.

Select “Registration”

At the top right you will have a Registration button, click on it and there you will open a form to place basic data such as username, email, telephone, password and its confirmation, as well as the acceptance of terms and conditions of the platform.

Likewise, if you want you can subscribe to receive news you just have to activate the option. then activate the captcha and click on “Registration”

Phone and email verification

They will send you an SMS to the registered phone to place the verification code and give it confirmation. The same will happen with the email, in which they will send you an email with a link to confirm the account and activate it.


Account Verification

Once you have completed all the registration, you must verify your account, this is quite important that you do it so that you do not have limitations, it is a financial platform and as such, by regulation you must verify your identity and address.

  • For identity, you can do it through your ID, passport or other identity document, also a selfie with the document, you can support yourself by linking the mobile if you do not have a webcam.
  • In the case of the address, it would be verified with a bill for services such as electricity, water or other document where they can verify your location or residence, this is to raise the limits further.
  • For the card, you need to enter your card details and even take a photo and attach it.

Ideally, you should verify everything, but the first thing is the identity, in which you will be required name, surname, middle name in the case you have. Secondly, you will be asked to identify what type of document you are going to use to identify yourself, for example, the DNI.

After that, you must upload a photo of the front and back of the identity document, if you do not have them at hand, you can do it with your mobile and send it to you by mail or web whapsapp or another application, and then upload it from the computer.

Once this is done, it will request a selfie with specific details, where you must write down on a paper the word EXMO, followed by the date of the day of the photo and hold the DNI without covering anything, there you capture the photo and attach it, with these steps you will already be in the process of verifying the identity.

Likewise, you can do it to verify the address with a receipt and in the case of the card you must do the same, they are similar processes quite simple, the idea is that you complete the entire registration process.


Another important point regarding registration is the security configuration in which you can add extra protection and have two-step authentication. Likewise, you can observe other options such as personal information, which you can review carefully.


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How to create an account on Poloniex step by step

In this article you will learn how to register with Poloniex in 2022, it is a cryptocurrency trading platform, where you can trade with margin or leverage and you can also do hodl. Here’s a step-by-step way to create an account on Poloniex.

Go to the official website of Poloniex

Access the Poloniex registration page to later follow the step by step that we will give you to register for free.

Select “Sing Up”

Once you are on the platform you must select in the left menu “Sing Up”, where you must enter the email and password, the latter you must confirm it. Additionally, you must place the referral code (optional), as well as accept the terms and policies that govern this page.

Verify your email

Once the previous form has been completed, you must check the email where a link will be sent for the purposes of verifying the email, in order to continue with the account registration process.

Account access

With the email and password data entered, we select “Log In” and access. Among the important things that there are is the “profile”, where you will have to verify your account.


If you want to apply margin for trading or leverage you must verify your profile in “Upgrade” you will be able to select other aspects that will help you verify your identity, you will probably be asked to upload a file, such as a photo of the DNI or an invoice to verify the address.

Then, in the event that you want to use the future option that allows margin up to one hundred leverage, you have to have verified these things.

This request is totally normal, since it is required by all financial platforms by legal issue, with this you would already have verified level 2 and with it you would not have any type of limit.

Right now, you could make all kinds of deposits, normal purchases with certain fairly high limits.

Two-factor authentication verification

To protect your account you can activate 2FA this is double authentication code, so you must enter a code apart from the password to be able to log in.


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How to Invest in Cryptocurrencies on Skrill

If you are one of those investors who do not like to deal with many complicated orders, but prefer to hold long-term, then Skrill is an excellent alternative for you. With the simplicity that characterizes it.

But the question is, how to invest in cryptocurrencies within Skrill? The answer will be shown in this article.

But first log in to your Skrill account, then you could already start the step by step that will be shown below.

Access Skrill’s Cryptocurrency Investment Options

Like any financial platform, Skrill puts at your disposal tools so that you can invest in cryptocurrencies within yourself, doing so in a simple and comfortable way. To access these tools, below, we will describe the following procedure:

  1. Within the home screen of your account, in the left sidebar, find and tap on Cryptocurrencies.

Important: It is likely that when you enter this section, you will be asked to accept some terms or similar.

  1. Once there, you are presented with different options in terms of cryptocurrencies. From among these, you will select Invest now, clicking on this option.

  1. Once you access that section, you will be shown an extensive list of existing cryptos in Skrill. In each of which, you are given a Trade option. If you click on any of these, you would enter their trading options.

  1. When you have entered the crypto you chose, you will see a Buy – Sell panel.

Ways to trade cryptocurrencies in

In this buy-sell panel or trading box, you will have some options that will allow you to perform these operations:

Steps to buy cryptocurrencies within Skrill

First of all, talking about the purchase of cryptocurrencies in the Instant mode (which is the usual one), you will be able to do the following:

  • Select the currency in which you want to buy cryptos.

  • Set the amount to spend that, for its purposes, must be a minimum of 10 EUR (You are also shown the balance you have available).

  • Select the cryptocurrency in which you are going to invest.

  • See what you are going to receive in cryptos in equivalence for what you have invested.

  • See the commission you will be charged for that transaction.

When you have everything ready, then you can click Next.

After this, you will be able to see the summary of the entire operation; you will be told everything you have added, such as the amount and what you would receive, and also the commission charge, which will be added to the total amount to be spent. If you agree with everything, you can click on Confirm.

Steps to Sell Cryptocurrencies within Skrill

There is not much to comment on in the case of selling your cryptos within Skrill, as they are basically the same steps as in the case of the purchase:

  • You establish the type of crypto that you are going to sell (and that logically, you should own).

  • You indicate the amount of cryptocurrencies to sell directly or, if you prefer, using the percentage indicators.

  • Select the currency in which you want to receive the funds in equivalence.

  • See how much you will receive, in the same way as the previous case.

Having this ready too, you would click Next.

Following this, you must also click on Confirm in a summary similar to that of the case of the purchase, where you will see important data with which, if you agree, you can proceed to the respective confirmation.

Some other options that Skrill gives you to trade

The options you have in Skrill to trade are very practical and easy to use. And for your convenience, they are not numerous. Here’s what you can find on Skrill for when you want to trade on it:

The Portfolio section

In this section you have at hand some useful things for your negotiations, such as:

  • The Watchlist, with which you can keep abreast of the indices of your cryptos in the market.

  • Alerts and orders. With these options you are given the possibility to mark an index within the cryptocurrency, which, if the price reaches it, this will be notified to your email or mobile, as you have it configured.

  • Recent activity. It is the section where you will get your last financial movements, when it comes to purchases and sales, as is logical.

The Trade section

Within this section, you can do what you are told below:

  • Visualization of Graphs. This will allow you to take a look at the stock market movement in a not at all complex interface (you can also see the current trend that the market has in terms of sellers and buyers).

As you can see, the trading system within Skrill is not complicated. They are few and simple options, but with the same utility for people like you who do not want to get too entangled in the stock market issue, but to play it safe, but in a simple way.

This tutorial summarizes it this way so that you have a general idea when investing in cryptocurrencies within Skrill.

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