One of the crypto industry’s greatest strengths is the fact that there will always be new tokens to choose from. There are thousands of cryptos floating about at any given time and more are being launched every day.
And make no mistake, consumers are very eager to invest in these tokens. As Michael Graw says, many are looking to discover the latest Coinbase listings. With this comes a challenge of cost. Many of these consumers want to save on costs even as they buy these new tokens and this can prove complicated. However, there is a way around this; presales.
What is a Crypto Presale?
When a crypto first hits the market, it is typically listed on an exchange or via its official website. But there is a period before the full launch called a presale. This is a sale held by the creators of the token, either to a private group of investors or the general public. The tokens are listed at a lower price than their intended debut amount and they might also come with other benefits.
The point of the presale is to allow new investors to enter the project ecosystem at a lower cost while also gauging interest in the crypto and raising funds to support the token. After buying these tokens at a lower price, they can resell them for a profit if they go on to do well in the market. This, of course, is if there is no token vesting arrangement in place.
Crypto presales have become very popular in the digital asset space, with some famous presales raising millions of dollars. When a presale does well, it also tends to attract a lot of outside attention. This means that when it does find its way to exchanges, it will see a lot of interest from the public.
How to Join a Crypto Presale
If you’d like to buy new coins at an affordable rate and enjoy a crypto presale, here are a few steps to get you started.
First, you need to know about the upcoming presales and this will require engaging with the community. Read crypto-focused publications and join groups of crypto investors. With these sources, you can hear about promising crypto presales before they begin or as they are ongoing.
After you find out about these presales, you have to do your own research to make sure it has probable use cases. Ask yourself what the token will be used for after the presale is over that will keep its price consistent. The last thing you want is to invest in a presale that underperforms in the long run.
If you are satisfied with the presale, you’ll have to register for it and buy whatever amount of the token you want. You also have to decide how long you want to invest in the token; you might sell it soon after it hits the exchanges or keep it for longer.
Pros of Presales
Crypto presales come with several benefits for investors such as:
- Access to tokens at a much lower price
- Access to exclusive benefits for early buyers
- The possibility of making profit by reselling the tokens
Cons of Presales
While these presales come with a ton of benefits, there are also a few risks to be aware of
- Some projects have token vesting programs in place, which restrict presale tokens from being resold
- The project might underperform when it hits the wider market, meaning the investor makes no profit
- Presale scams are, sadly, not unheard of and prey on investors.
The bottom line: just like with every other investment, do your homework before making the move. Some of these new coins will soon see a price spike. The more you know about them, the more likely you are to reap the benefit of that surge.
