So, you’ve heard all the amazing things about cryptocurrency and how much money there is to be made from various digital assets. And if you follow crypto news, you might have seen headlines about so-and-so presales breaking records and raising a lot of money in a short amount of time. But what is a crypto presale? Are they worthwhile? And how do you find good ones to invest in?
As Alex Popa points out, you need to consider use cases within the recommended list of crypto presales. What does the project plan to do when it hits the market? If there are legitimate use cases for the native project or blockchain, then the token will probably go up in value. If there are no use cases to speak of, you should be cautious. You also need to turn to resources and crypto media. Many of these publications report on upcoming presales and offer information about the teams behind them and why they are worth investing in. This will help you identify the more promising ones to sign up for.
But what about other options to go about investing in crypto? Do you sign up on a Solana casino and begin betting? Do you trade crypto speculatively? While these are valid options, there are many reasons why crypto investors should consider presales.
What are Crypto Presales?
To understand a crypto presale, you have to understand how new cryptos are typically launched. When a crypto investor wants to buy a token, they will usually go to an exchange (whether centralized or decentralized) or a peer-to-peer platform to do so. The process of getting a token listed on an exchange is rather intricate. The team behind it has to go through an application period and when they are approved, the token is listed and sold on the exchange.
There is a period before the token is listed on exchanges when the developers allow members of the public or a group of private investors to buy a certain amount of the token before everyone else. This is what we call a presale. Oftentimes, when a token is being developed, a certain amount of it is earmarked for presales.
The point of a presale is to drum up interest in the token before it launches, raise funds for further ecosystem development, and gauge market response to it beforehand. Presales have become a major part of the crypto space and the performance of a presale can lead to a lot of hype for the token before it reaches the general public.
Benefits of Presales
Presales are a big deal in the industry for a reason. They allow the project to drum up publicity and money even before the token hits the market but what’s in it for you as an investor? Here are some of the benefits of presales:
- Cheaper Token Prices: One way that developers attract investors to presales is by listing the tokens at a lower price than it would be on the exchanges. The idea behind this is to draw in early investors who save money when buying the token. And depending on how many units you are looking to buy, this could add up to some serious savings over time.
- Possibility of Profit: Besides being able to buy the crypto asset at a cheaper price, presales also mean that you can profit off the token when it does hit the market. Say you buy a token at $0.50 during a presale for example and it hits the market at a $0.75 initial price. If there is a lot of hype for the token and the price spikes to $2 per token, you can sell your initial stash for a profit, even more than you would have made if you bought it during the initial listing. Some investors buy tokens with the express intention of selling once they hit the market and this could be very profitable.
- Extra Perks: Besides the lower price of the token, presale organizers also offer extra perks to investors to get them to participate. This can include free merch, invitations to events, priority during airdrops, and much more. In some cases, these perks will only ever be available to presale investors. You also get to embed yourself into the token’s ecosystem, which can fetch you benefits even after the rollout is complete. If you are looking to engage with a token’s ecosystem well into the future, you might want to sign up for a presale.
- Early Access to Features: In some cases, the token being launched is only part of a bigger project, like a trading platform, game, metaverse, and much more. Buying into the presale sometimes comes with early access to features and services being offered by the developers and this is something to take advantage of.
How to Find Crypto Presales
If the benefits of crypto presales convince you and want to begin investing in them, you’ll want to know where to find good ones. After all, for every legitimate presale that will fetch profit for its investors, there are scams to avoid. But there are a few ways to find worthwhile presales.
To find a suitable option, you should also spend time in crypto communities like forums, Telegram groups, Twitter accounts, and whatnot. These communities freely share information about investment opportunities, including presales. Of course, be cautious about any recommendations you receive and only invest money that you can comfortably lose.
Conclusion
Crypto presales can be a great way for investors to make money from promising crypto projects that have not hit the market fully. But to get the most out of it, it is important that you get educated about how presales work and how they can benefit you. Then, you’ll need to carefully research the projects you are considering to avoid shitcoins.
With research and enough luck, you could very well buy early into the next big crypto project and reap the monetary and non-monetary rewards.