In this article, we will be looking at one of those topics that seems to have a polarizing effect on most investors – the Presale of Cryptos
In the first two sections, we will begin by looking at what Crypto presales are and how they work.
In the second part of the article, we will look at what an investor can do to maximize their earnings through presale tokens.
What Are Crypto Presales?
Pre-selling is a process by which crypto companies offer interested investors a chance to buy their tokens at a specific price before their initial public offering.
The crypto companies get funds for the finalization of their project through the preselling of their tokens while the investors get to have early access to the token of the project before it is offered to the public.
Now, let us have a look at exactly how presales work and the ways in which they can be offered.
How Do Crypto Presales Work?
As mentioned earlier in the section above crypto presales lets a person with an interest in the token access the token at a specific price.
The process is often advertised by the company through social media platforms, websites, and other means of advertisement such as through organized events or sponsorship deals.
The interested parties who spend money on the presales do so expecting for the coin to be listed at a higher value than the one which they have bought them for at the presale.
Others would choose to hold the coin hoping for its value to rise in the future, giving them good returns on their investment.
The benefit of presales for the issuing crypto group will be in the form of funding, publicity through sale, and legitimacy through the trust of the investors.
What Is The Public’s Opinion About Presales?
Upon looking at the opinions of the people who have had previous experience with either attending a presale event or having bought a coin in the presale event it is pretty clear that the one thing that most of them agree upon is that the returns that you receive would mostly depend on which coin you buy.
A lot of the investors share their experience of buying crypto tokens through presales and then later regretting the decision when the coin was listed at a lower price than the one they expected.
The presale mechanism was criticized a lot of times by the same people for being borderline scams because of the way they deceive their investors.
The people who fall to the charms of well-designed websites and well-written project overviews might end up losing a lot of their money due to the failure of the projects to bring those plans to fruition.
Investors on the other end of the spectrum have benefitted largely from buying tokens at a great deal and further reaping the benefits in terms of massive returns over the years.
Regardless of which investor you are, there are still a few things that one must keep in mind while buying tokens through presales to make sure that you maximize your profit and achieve financial growth in your portfolio.
These tips are given in the section below.
How Can An investor Maximize Their Financial Growth Through Crypto Presales?
These are a few things that one can keep in mind when investing in presale events in order to make sure that they can get the full potential of their investment while avoiding any potential losses
- Looking for coin offers that are regulated: It can be said without a doubt that Initial coin offerings that are regulated are much safer a bet to make while investing in tokens
- Project prospects: While buying a token make sure to read their future plans for operation. If their future plans seem to be poorly set up or unrealistic in nature it is advisable to avoid buying into the token sales.
- Team Members: Another important thing that you should be looking at when buying a presales token is to look at the members of the team. Projects that have their backing from reputable members from cryptocurrency or from any other quality ventures can be a term for assurance of their quality and possible returns.
- Observing the crowd: While planning to invest in the token make sure that the project is something that people are enthusiastic about and has the necessary backing from trusted members or groups.
Making sure that you follow through with the above steps will help you a lot in maximizing your financial earnings and maximizing growth.
Now, let us look at what we can formulate from all the information that we have looked at until now
Final Thoughts
While it can be argued that trading with any form of cryptocurrency is a highly risky business and can lead to huge losses it needn’t be the high-risk high-reward model of trading that most see it as.
The financial literacy that one can get from understanding the topics that have been covered in the sections above regarding the crypto market and presales can help you minimize the risks that you would suffer in the market while at the same time making sure that you maximize the potential of your investment.
