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Diving into Crypto Presales: Your Guide to Getting Started

Diving into Crypto Presales: Your Guide to Getting Started
By Guest Author
September 10, 2024

Crypto presales are a growing avenue for investors looking to enter the crypto market before a new token is officially launched. This process allows investors to purchase tokens at a discounted rate, often before they become available to the general public. But what exactly are crypto presales, and how can you participate in them?

Understanding Crypto Presales

A crypto presale is an early chance to buy a new cryptocurrency before it's open to everyone. It's similar to buying shares in a startup before they are available to the public. During a presale, a company sells a limited number of tokens to early investors at a lower price. 

Smart investors search for promising presale coins, like those reviewed by the experts of Valuewalk, hoping to find the next big cryptocurrency. Projects like Pepe Unchained, Base Dawgz, and PlayDoge, are showing signs that early adopters of presale coins can see significant returns and are well worth looking into if you are looking for an opportunity to invest in new cryptocurrencies.

Presale coins let you participate in new projects, support new ideas, and be part of the digital finance world. Some of these coins work like money on online gambling sites, where you can bet, play games, and access special features securely.

Why Join a Crypto Presale?

  • Participating in crypto presales can have several benefits:
  • Big money: Sometimes, the value of tokens can go up a lot after the official sale, meaning you can make a big profit.
  • Early access: You get to be one of the first people to use the new cryptocurrency.
  • Community: You become part of a group of people who believe in the project.
  • Support innovation: By investing in presales, you support new and innovative projects that could shape the future of technology.

How Do Crypto Presales Work?

Seed Funding

Seed funding is the first step in a crypto project's journey and comes from the people who start the project (founders) or from their friends, family, or rich investors (angel investors). This money helps the project start growing.

Presale

A presale is when a new cryptocurrency project sells its coins to people for the first time. It's like a special early sale. The money raised helps the project grow even more. There's usually a limit on how much money (hard cap) the company wants to raise. This first funding, along with money from the founders, friends, family, or early investors, is important for developing the cryptocurrency project. 

Crypto presales can take different forms, but they generally involve selling a portion of a project's tokens to early investors. These presales can be private (private presale), meaning only select investors are invited, or public (public presale), where anyone can participate.

Listing on Exchanges

Once the coins are sold to the public during a presale, the project puts them up for sale on special places called cryptocurrency exchanges. This means anyone can buy or sell the coins. It's like putting something on a store shelf.

Subsequent Money

Sometimes, a cryptocurrency project needs more money to grow. They can sell more coins to raise extra cash. This helps them make their project better and tell more people about it.

The Risks of Crypto Presales

Like any investment, crypto presales come with risks:

  • Scams and Failures: Not all projects succeed, and some might be scams. It's important to research thoroughly before investing. For example, Amazon’s Pre-Sale Token Scam involved scammers falsely claiming that Amazon was launching its crypto token through a “pre-sale” event. They created slick websites and ads promoting “Amazon Coin” or “AMS Token” at a huge pre-sale discount. Promises of high returns, such as 200% bonuses, and the lack of an official announcement from Amazon were common red flags of a scam.
  • Market Volatility: Cryptocurrencies are speculative investments and are known for their price volatility, which can affect your investment.
  • Regulatory Risks: Different countries have different regulations around cryptocurrencies, which can impact your investment. The regulatory landscape plays a significant role in shaping investment opportunities and risks.

Where to Find Presales

Crypto News Websites

Crypto news websites are dedicated to providing the latest updates and information about the cryptocurrency market. Many of these platforms cover upcoming presales, providing details about the project, the team, and the tokenomics. Examples include CoinDesk, CoinGecko, Cointelegraph, CryptoNews, and Bloomberg Crypto.

Social media 

Social media sites are important tools for crypto projects to connect with their community and share what they offer. Twitter and Telegram are especially popular for announcing and sharing updates about presales.

  • Twitter: Many crypto projects have official Twitter accounts where they share news and interact with their followers. Following relevant crypto influencers can also help you discover new presales.
  • Telegram: Many crypto communities and projects have active Telegram groups where members discuss projects, share information, and sometimes announce presales.

Crypto Communities

Online groups and forums about cryptocurrencies are great sources of information. Members often talk about potential investments, share ideas, and suggest promising projects. Popular crypto forums and communities include Reddit, BitcoinTalk, Bitcointalk forums, and various Discord servers.

Launchpads

Cryptocurrency exchanges have started offering launchpads, which are platforms for vetted projects to conduct token sales. These websites make investors feel safe and confident. Examples of crypto exchange launchpads are Binance Launchpad, KuCoin Spotlight, and Gate.io Startup.

By combining information from these sources, you can increase your chances of finding promising presale opportunities. However, always conduct thorough research and due diligence before investing.

Steps on How to Join a Crypto Presale

  1. Research projects and evaluate their potential: Read the project’s whitepaper to find out what problem they solve and the people behind the project. Check their website and social media profiles. Evaluate their potential for success. Remember, not all presales are winners.
  2. Sign up: Go to the project's website and create an account.
  3. Verify yourself: Prove who you are by giving personal details such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
  4. Buy coins: You can buy the presale tokens. This usually involves sending cryptocurrency (like Ethereum or Bitcoin) to a wallet address given by the project team. Double-check the wallet address and follow the instructions to ensure you send the funds correctly. You can often buy the coins cheaper during a presale.
  5. Receive and hold the tokens: After the presale ends, you’ll receive the tokens according to the presale agreement. Some projects have vesting periods which means you have to wait before you can sell them. There might be a lock-up period, which means you can't sell or transfer the tokens right away.

It's important to understand the terms of the presale to know when you will receive the tokens. Once you have them, you can decide whether to hold them for the long term or sell them, depending on your investment strategy and market conditions.

Important Tips

If you're interested in participating in a crypto presale, the following tips could help:

  • Understand the terms: Always read the terms and conditions of the presale to know what you're agreeing to.
  • Don't invest money you can't afford to lose: Crypto investments can be risky, so be careful.
  • Be careful of scams: Make sure the project is legitimate before investing.
  • Diversify your investments:  Don't put all your money into one project; spread it across different investments to reduce risk and volatility.
  • Secure your tokens: Use secure methods to store and manage your tokens, like hardware wallets.
  • Stay Informed: Keep up with market trends and project updates.

Notable Examples of Successful Crypto Presales

Several projects have successfully raised funds through presales. For example, Ethereum and Filecoin started with special early sales. In 2014 Ethereum raised over $18 million to build a super-smart computer (blockchain), and Filecoin made $52 million to make a way to save stuff online.

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