Cryptocurrency is a booming business these days.
If you get in on the ground floor with different cryptocurrencies, you can actually really succeed down the line. But the trick here is to get in early enough when coins and tokens haven’t risen too much in price. And this is where presales come in.
What is a crypto presale?
For any new cryptocurrency, there is a presale stage where the new coin or token is sold to backers or investors before it is released to the public. During this phase, the coins or tokens are typically offered at a much lower price than they will be later on once released. As a result, many investors use cryptocurrency presales to buy coins at low prices, which they can then sell for a decent profit once the coin is officially released and has (hopefully) increased in value.
The idea for this is that a new cryptocurrency requires funding and backers in the early stages. By offering backers the chance to get in on the ground floor, the cryptocurrency is also securing funding and creating a community. Early supporters often have the advantage later on when the coin is released to the public, making presales a win-win for everyone.
Benefits of a presale event
Without early funding, many of these coins and tokens will fail to launch, making presales a key part of the process. Having the backing at the start allows further project development, expansion and marketing, all of which will stand the coin in good stead in the future with regards to increasing its worth. Here are some other benefits:
- Purchasing the coin or token at a heavily discounted rate (Ether was worth $0.31 in its presale, and now trades for over $1800).
- Becoming part of the founding community behind the coin or token
- Backing and aiding in the growth of a project
- Getting early access to any new projects or innovations from the project
- Benefiting from additional bonuses and incentives for presale buyers
Tips and strategies for a successful presale purchase
Of course, it’s not as easy as simply finding a new coin or token and purchasing it. There are some major strategies you will need to use in order to get the best out of the crypto coin and your investment.
First, you shouldn’t just jump into any presale. It’s important to actually look at the fundamental aspects of the project. Checking out the goal of the project, whether it is addressing any fundamental issues, giving to charity and how viable the ideas are behind the project will help guide your decision.
Even if you find one good project, throwing all your funds into it is never the best idea. It’s always better to take a look at the different options out there and potentially invest smaller amounts across a number of promising projects. Staying diverse in your presale portfolio is a must and key to mitigating any risks. With this strategy, one project can fail, but the others can pick up the slack, so you don’t suffer a loss.
Following on from this, it’s important to budget. Never invest more than you can afford to lose. Exercising caution in the highly volatile crypto world is an absolute must. Safeguarding your finances for the long term is essential.
How to invest in a crypto presale
With all those tips in your mind, your next step is to buy. Find a trusted presale platform with a good reputation such as Binance Launchpad or CoinList. Set up your wallet for storing the presale tokens and then sign up for the presale. Make a deposit of the required cryptocurrency value and then sit back and wait for the release of the token. With enough buzz and excitement surrounding your presale coin, the price should go up considerably for you to make a profit.
