Some crypto projects offer their tokens to curious investors during the development stage. This process is called a “presale” or “pre-sale” of the crypto because it happens before the initial coin offering (ICO). This is why presale tokens are available at much lower prices. An ICO is similar to an IPO of crypto tokens. Lately, there has been a lot of criticism because investors tend to take benefit of ICOs by gathering large amounts of coins, thereby evolving market manipulators.
Presales benefit investors and developers, particularly if the project is well-functioning and increasing. Crypto presales are used as crowdfunding, supplying developers with the required funds to complete the project. This option allows investors to enter the crypto before it hits the public market and becomes significantly more expensive.
Presales also help developers spread the word about their projects, attracting more attention from a marketing perspective. The event plays a crucial role in attracting investors after the ICO launch. Presales have been held since 2009, when Bitcoin, the first and oldest cryptocurrency in the world, was launched. Those investors who bought BTC and held it for more than a decade are now millionaires.
Also Read: Detailed Cryptocurrency Market Analysis
Types of Cryptocurrency Presale
There are two types of pre-sales:
- Investor-Only Pre-Sale: Only available to high-net-worth investors willing to invest large sums of money into a project. While the amount invested may be significant, investors can take advantage of the price appreciation once the tokens hit the open market.
- Public Pre-Sale: These pre-sales allow retail investors to get access to a project’s token before it is released to the public. However, public pre-sales do not always generate the desired money from individual investors.
How to Participate in a Cryptocurrency Pre-Sale
You can participate in a cryptocurrency best crypto presales by following 3 simple steps:
Find and select a cryptocurrency to purchase in the pre-sale. A complete list of such cryptocurrencies is available on CoinMarketCap or CryptoTotem. Research the project by reviewing its website, whitepaper, and development team.
Select an exchange to purchase coins from. Before you create an account on an exchange platform and deposit funds, ensure it is a reputable company. Choose world-famous cryptocurrency exchanges to ensure a trusted third party manages your assets.
Purchase. After creating an account and wallet, you can find a presale coin on the chosen exchange and purchase tokens.