A quick look at crypto-focused media will show that presales are having a major moment. It seems that every other day, a new crypto project is raising millions in presales and being hyped as the next big thing. Seeing all of this, you might be tempted to get in on the action yourself and begin investing in presales. But how do you go about doing this?
The key to making the most of crypto presales and avoiding possible pitfalls is doing the necessary research, leveraging all the tools you can find, and having a bit of luck.
What is a Crypto Presale?
As the name would suggest, a crypto presale refers to the sale of a cryptocurrency before it hits exchanges or is fully rolled out into the market. Before a token is launched, its creators typically earmark a portion of its supply to be offered either in a private or public presale. Presales serve multiple functions, including letting investors buy at a cheaper price and then sell for a profit, gauging the industry’s interest in the project, raising funds for the project’s development, and so on.
For investors, presales offers the chance to not only profit in the future but it also comes with perks like early access to the community and priority when other perks open up.
How to Invest in Presales
If crypto presales seem like a good investment option for you, here are a few steps to get started with them.
Research Presales
Like every other investment vehicle, you need to do your research before you put your money into presales as not everyone is worth your while. One way to do this is to turn to reputable crypto-focused media to see which ones are considered high-quality by the industry. Look into the presale cryptos ranked by Techopedia, for example, to see which looks promising. Take it a step further by looking into them individually to decide whether or not you want to buy into them. Another way to research presales would be to visit online forums, Reddit communities, Telegram groups, and other places where crypto enthusiasts congregate online. These should give you an idea of presales you can invest in.
Decide on Criteria
Even after you find a selection of quality presales to invest in, you still need to decide on your investment criteria. For example, you might want to focus more on one type of crypto versus the other such as gaming cryptos or meme coins. You may also have a preference for tokens that can be staked or tokens that will be listed on certain exchanges.
The more you read about crypto presales, the more you’ll know what types appeal most to you based on your goals and preferences. Take your time to figure this out and you’ll be all the wiser for it.
Choose Your Presales
After you decide what presales you want to invest in, your next step should be deciding the specifics of your purchase. For example, how much do you want to invest? Keep in mind that investing is always a risk and to never spend more than you can afford to lose. Besides the amount itself, you want to know how long you want to hold on to your tokens.
Some investors sell their tokens as soon as they are rolled out in exchanges and some wait even years to sell. Keep in mind that some presale tokens are vested, meaning holders cannot sell them for a certain period of time. Either way, make sure you are investing a sensible amount and know how long you plan to hold on to them.
Post-Investment Activities
Your presale journey does not stop after you’ve made your purchase. You have to first make sure that your tokens are stored securely in a wallet whose details you keep safe. Also, make sure to monitor the price of the token in case it appreciates in value and you want to sell your stash. You can leverage trading bots to automatically sell your tokens or set up price alerts that will let you know when the token appreciates. You should also follow the project on social media or subscribe to their newsletter (if they have one) to stay on top of new developments like airdrops.
Conclusion
Crypto presales have become one of the industry’s favourite ways to raise funds for new projects and for investors to be the first to get involved in these projects. Presales exist for virtually every type of crypto and if you’re looking to invest in one, you’ll have no shortage of options.
As we’ve broken down in this article, there are several steps you should take such as conducting research, deciding how much to invest, and monitoring the projects’ performance afterwards.
