An ICO is a form of fundraiser that typically acts to fund a project. The term “ICO” stands for Initial Coin Offering and is similar to an IPO in the stock market. Its essentially an opportunity to participate in a project that you would like to see come to life, while at the same time potentially having the opportunity to profit from a rise in the demand for the coin. Usually ICO consists of three parts: pre-marketing, pre-sale and crowdsale. The point of pre-sale is to give cheaper tokens for early biders.
Vitalik Buterin: "Protip: if an ICO does volume bonuses ("buy at least $50000 of coins, get 20% more") then they do not understand the first thing about the egalitarian spirit of crypto (or at least, the egalitarian spirit that I believe crypto should have). Skip them."
NB! Investing in ICOs you should consider the fact that there is a chance to lose all your investments. So, before investing in any ICO you should do proper researh on the background of the projects before committing. The decentralized ICO space opens doors to phishing links, scams and fraud.
A non misleading ICO which raises funds for a project is perfectly legal, provided all documentation is in place and proper legal counsel has approved the ICO terms. In most cases, as long as the company or foundation which is conducting the ICO does not misrepresent their coin/token as a financial security, representation of company ownership, and investors follow their local laws of their own country regarding reporting of income, it is perfectly legal for everyone involved. This can change over time, but for now there are no major issues.
Well, risk management plays a huge role in becoming successful. The more you invest, the more profit you get and the more riskier it is. Never invest more than you are willing to lose and never go “all in”. Depending on your risk tolerance, a solid investment amount cannot be determined.
This is a number that will vary and will depend on your investment strategy and how much you have invested. Obviously the more money you put in, the bigger the return is however, the riskier it becomes. Time also plays a huge factor when investing in ICOs, you could take out money early or wait it out. These factors will impact your earnings/losses.
You store your tokens in a digital wallet just the same as you would store a cryptocurrency like Ethereum. Which wallets you can use is dependent on which blockchain the tokens are issued on. Most commonly tokens launch on the Ethereum blockchain. This would enable you to use any Ethereum wallet. Usually tokens will be using for trading, voteing, earning extra tokens in bonus program or for revenue earnings of company (if they are getting so far), anyway use case of token should be written on website or whitepaper.