All about crypto presale: What it is and how to get in

A crypto presale is a set of cryptocurrencies being sold before the Initial Coin Offering (ICO). Developers offer them to interested investors to gain additional funding for their ongoing blockchain project. Revenue gained from presale can help the developers stick to the roadmap they promised. 

Why would investors be interested in crypto presales? The core appeal of a cryptocurrency is its volatile value in the market. Being one of the first to join a new blockchain lets you benefit the most from the eventual climb in value of its native assets. Essentially, if you ask 'what is a crypto presale?', most would consider it as an opportunity to get rich quick.

Crypto always becomes more valuable as it gains more investors, thus, the best time to jump into its ecosystem is right before it launches. If you are interested in presale crypto coins then here is everything you need to know about the practice and the factors to consider related to it. 

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How to buy presale crypto

Buying crypto presale is easy but it will need you to go out of your way to look for and verify them as potential ventures. These won’t usually appear on mainstream exchanges like Binance, Coinbase, and FTX unless they are backed by major investors already. For assets typically outside of big markets, here is what you need to do:

Keep an ear or eye out for developers looking for investors for their projects

The presale phase is often a secret because developers don’t have the resources to place their assets on market listings. Your only means to find these on sale is to be approached directly by a developer or you take the initiative to be an investor to help the project’s development. 

This means you need to have strong connections with said developers. You can form your network at blockchain-related conventions or have a friend give you a tip on a worthwhile venture. Meeting at a convention is typically the safest method to avoid bad actors.

Find third-party marketplaces or platforms where presale cryptos can be sold

Once you have found a blockchain you can invest confidently in, you may then ask to form the transaction using an exchange. This means they are offering their asset online and you will buy it once you see it on the listing. Using an exchange platform like this is the best way to verify the trade between seller and buyer, thus protecting both parties in case the other is a bad actor. 

Likewise, completing the transaction on a marketplace preserves the value in which the assets were exchanged for. This set a standard for the coin’s value for the future. Thus, asking for the presale is how to buy crypto before listing. You need exchanges that are loose and accessible to low-market cap assets like decentralised platforms, removing Coinbase and Binance off the table. 

Use fiat currencies like the United States dollar or euro

Although Bitcoin and Ethereum have become so valuable that corporations use them for big investments or purchases, many developers prefer fiat. The United States dollar (USD) and euro (EUR) are the most valuable for these exchanges. 

You can negotiate for them to accept crypto but it all comes down to what they prefer to pay for what the project needs. Stablecoins like Tether (USDT) are also usually popular because it’s easier for international banking but that still depends on the developers. 

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Factors to consider when buying 

Caution is the most important practice you should have as an investor. Jumping on the bandwagon started by a prominent backer is usually safe but crypto presale is usually riddled with doubt. You have to be careful when talking to developers because confidence and a good presentation can be too convincing. Here’s what to consider when learning how to buy presale crypto:

Project’s benefits to other blockchain projects

Potential can come from what the project was trying to do. If it's only goal is to make you rich, then it’s not a good idea to support. A blockchain in development must offer efficient and sustainable solutions for common problems in the space that it is going to be a part of. 

That would be the blockchain ecosystem where multiple networks already exist and more will come as time goes. Great examples of these were BTC which aimed to be a new mode of payment while ETH serves as a platform for smart contracts and decentralised applications. Success comes to developers and investors with understanding of what the market needs.

Large community anticipating the project

Even the best presale crypto can remain obscure from the public but word of its network’s development should stir a commotion among the community of crypto investors. Even if they aren’t able to buy crypto presale, there should be some people looking forward to its release based on what the developers have promised thus far. You can find such conversations on forum threads or social media groups. 

Backing from high-profile investors

The best way to gain confidence in making an investment is learning who is supporting the said project. As mentioned, there should be a community talking about the project. Likewise, there should also be a high-profile investor either financially backing it or is part of the conversation discussing it. 

Such people could be billionaires or influencers active on social media and their opinion is mostly trusted by the public. Their fans are primarily filled with people like you who are looking for investment opportunities. This means there will be more people at where to buy presale crypto but it also ensures its market growth in the long run. 

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The benefits and risks of presale crypto

Always stop and ask ‘how does crypto presale work?’ for the developers and investors. It comes with various benefits for both parties but only after its relevance in the crypto ecosystem is established. What benefits does this practice provide for developers and investors as well as what risks are involved for both parties?

How is presale advantageous for the investor?

The biggest advantage presale offers to investors is the potential growth it will have in the future. Great examples of this are BTC and Ethereum each starting at less than USD each but ultimately breaking past x1,000 the price hike. 

Other altcoins typically move up and down the hundreds range and it is likely the same potential that any new blockchain can reach. Thus, joining its market late can lessen the amount that you could have earned. Buying crypto as early as the presale phase guarantees that its price will only go up instead of down. 

How is presale advantageous for the developer?

More often than not, developers start their project with financial backing enough to begin ICO. Getting just a few more funds from extra sources, like an investor buying crypto presale, help them plan ahead of their roadmap. 

Doing so helps the blockchain become even more convincing as a project worth investing in for other people. This can snowball into becoming a new network giant benefiting not just the investors but all blockchain-based projects in the same economy.

What risks do presales pose for investors?

While there are benefits, there are also risks. For investors, it could be the possibility of getting scammed. There will be bad actors trying to sell you crypto presales that don't have the experts needed to make it work or its mission isn’t what the market needs. 

These are usually easy to spot if you understand how crypto works and that’s why their targets are typically newcomers to blockchain development. Do your research and don’t trust all items in the crypto presale list until you fully understand its potential.

What risks do presales pose for developers?

Developers are prone to a few risk factors because of bad actors’ existence. They will be subject to criticisms and doubt until they can prove their concrete plans for the future. That’s why one of the most popular strategies for establishing public relations is to hire a popular influencer to endorse them. 

If the developers can’t fulfil the promises they’ve made leading up to the ICO, then they can’t retain investor’s faith for even half a year. Fortunately, most blockchain networks’ success relies on hype, allowing projects to remain afloat as long as there are enough positive comments about it. 

Be a wise investor when it comes to presale crypto

The crypto presale list will always be hard to narrow down for the best investments. If you can choose your ventures wisely, then you are always just one good investment away from earning thousands if not millions. 

You never know which ventures will turn you into a billionaire in the next few years but always proceed with caution. Even if the crypto you bought on presale is experiencing a consistent upward trend, you should still look for signs of fluctuation. Treat crypto presale as you would any other assets and don’t be afraid to sell once you think it’s time to do so. 

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Words: Clarence Clarke