Crypto presales have become an increasingly popular way for new blockchain projects to raise funds before their official launch. A presale allows investors to purchase a project’s tokens at a discounted rate before they hit public cryptocurrency exchanges.
Participating in crypto presales can be a lucrative investment opportunity if you get in early on a promising project. However, there are also many risks involved with crypto presales that you need to be aware of.
This guide covers everything you need to know about participating in crypto presales as a beginner investor.
What is a Crypto Presale?
A presale in a crypto project would be a type of crowdfunding exercise where an investor can acquire the project’s tokens at an early stage before it are listed on the exchanges. Presales enable the projects to have capital in order to finance their development and operations.
How to Identify Legit Crypto Presales?
In fact, it is really hard to know now, with so many new cryptocurrency projects doing presales, what is legit and what might be a scam. It is something one would have in the back of his or her head, looking out for certain key things that would help decipher if the particular presale offered hope.
Start by checking whether the project has a very detailed whitepaper or litepaper that clearly spells out their vision, plans, and how their crypto is actually meant to be used. It’s also a good sign if there’s an experienced public team working on the project in a decentralized way. An active social media community is usually a positive indicator.
It is also very critical to verify whether the project has audited its code properly and had its verification done by some respected entities in the crypto field. Decent projects in this industry tend to have partnerships with or backing by respected organizations, investors, or even individuals in the blockchain/crypto space.
Not Sure What the Next Step Is?
If you’ve done your homework and identified what looks like a promising crypto presale that you want to take part in, here are the typical steps involved;
First, set up a cryptocurrency wallet where you can receive the presale tokens. Then follow the instructions on how to officially sign up for this presale.
Part of the registration will likely include connecting your crypto wallet and fulfilling KYC (Know Your Customer) verification requirements. After you do that, you may contribute funds to this project within the fixed time of the presale.
By the end of the pre-sale period, the project will send the tokens to the wallet address that you used. Just be sure to keep good records because, in most cases, the profits from actually selling those pre-sale tokens are looked at as capital gains.
Conclusion.
As it is with risks in the astronomical figures and potential rewards, so it can be with these wild west crypto presales. Could that shiny new token project you just invested in be the next Ethereum, or will it fizzle out like a dying star, leaving your investment reduced to stardust?
Only the vigilant ones, who can separate the gems from the grifters, will be able to fully reap the bounties of what crypto presales can offer. Study the whitepapers and litedocs like ancient texts, looking for the hidden clues that separate vision from vapor.
Scrutinize the teams for the true believers, not the pretenders just looking to catch a hype wave. Crypto presales represent the tantalizing frontier of fortune-shifting possibilities, where the gritty and discerning ones will thrive. The prizes are there for the taking.
Have you ever participated in crypto presale, let us know.
