Last updated on October 4th, 2024 at 10:29 am
If you’re active in the crypto scene, you’ve probably heard of presales at some point. They are one of the most popular ways to invest in new cryptos and have a ton of benefits. A crypto presale refers to the sale of a token by its creators before it is fully launched on exchanges.
The idea behind a presale is that the tokens are bought at a cheaper price and once they reach exchanges, the price will go up. If you like this idea and want to invest in crypto presales, consider the following steps:
- Research New Presales
Before you can invest in presales, you’ll need to know which ones are coming up and this is where research comes in. Make sure you’re following crypto-focused media sites and social media handles as these will report on the best upcoming crypto presales that are making waves in the industry. The last thing you want is to find out about a promising token after the presale has ended.
You can even go a step further by signing up for closed communities of crypto users that report on the next big projects before presales are even launched. This way, you can sign up for presales before they happen and enjoy all the perks that come with them.
- Consider Use Cases and Potential
It is not enough to hear about presales. After all, hundreds of them are happening at any given time. Instead, you need to be discerning and figure out which ones are worthwhile and which might be a waste of money. To do this, consider a few factors.
Ask yourself what the token’s use case is. Can it be used to play games? Will it be used for fund transfers? If the token has a promising use case behind it, it will likely succeed once it reaches the market. Also, consider the team and community behind it. Have its creators launched other successful tokens in the past? Is there an energized community around it? If so, it might do well.
- Confirm the Terms and Conditions
Once you find a crypto presale you want to invest in, you also need to figure out the terms and conditions around it. The first thing you’ll want to do is figure out when the presale is starting and how to register for it. In some cases, the presale is simply opened to the public and in other cases, you’ll have to register for it. Confirm which case you’re dealing with to avoid missing out on the opportunity. Also, figure out how many tokens will be available in the presale and how they will be sold. Most presales sell their token for USDT, ETH, or some other major token so make sure you’ve done this.
You should also find out whether or not the tokens are vested. In some instances, presale tokens are vested, meaning they cannot be sold for a certain amount of time. This is done to stop investors from abandoning the project at the first sign of profit. You may or may not be interested in vested tokens so make sure you have your facts straight. Finally, make sure you know what exchanges the token is going to be listed on and confirm via the exchange itself that this is accurate.
Once you’ve been briefed on all the terms and conditions, you should go ahead and sign up for the presale.
- Complete Your Purchase
After you’re all set, make sure you log onto the site on the presale day to make your purchase. Even after the tokens are in your possession, continue to monitor the situation as the presale might be extended or the token price might be reduced. You also want to monitor the situation to see when the token will roll out on exchanges and what its market price is. This will let you know whether to sell your presale tokens or continue to hold on to them.
Pros of Presales
While we’ve broken down the process of participating in a presale, it is also important that you know the benefits that come with them, some of which are as follows:
- Profit: By participating in a presale, you can get your hands on tokens at a lower cost. This means that when they finally hit exchanges, you can sell them for a profit. Making money is perhaps the biggest driver of presale participation and is something every investor should consider.
- Non-financial Perks: Besides the chance to make money, presale participants are often given other incentives. These include free merch, priority during airdrops, unlocking unique features within the project, and whatnot. If you plan to participate in a project long-term, joining at the presale stage would be beneficial.
- Community Access: Presales often tap into their community of supporters with exclusive Discord and Telegram groups, Q and As with the founders, and other events that let users feel close to the project and one another.
Cons of Presales
While presales have a lot to offer consumers, they also have some downsides to be aware of:
- Loss: A token might seem promising at the presale stage then go on to underperform and this is something to be aware of.
- Scams: Not every presale is legitimate. In fact, some are scams designed to rob investors while delivering a bad token or nothing at all.
