Crypto presales; how to invest before it's on Binance

Crypto presales; how to invest before it's on Binance

Crypto has a hidden private market. Presales. People learn about this the hard way when they buy a token at the top, thinking they're early. If you found this article, you're about to be introduced to the lucrative part of web3.

I'll go over the importance of understanding what happens before a token launch, why you're too late when buying on an exchange - and how to get in on presales.

Presales quickly explained

Crypto presales are early rounds of fundraising held by cryptocurrency projects. This allows the projects to raise funds and create buzz during development while allowing investors to get in on the ground floor with discounted prices on their future tokens.

It's like the crypto way of investing in a company before it's listed on a stock exchange. Buying tokens in a presale is similar to buying shares in a company, but with the project being built on blockchain technology - and you get tokens instead of shares.

When investing in a crypto project through a presale, you typically buy tokens that you expect will increase in value when launched to the public. And based on statistics, you're right on this assumption.

Let's look at an example. You're probably familiar with Solana, one of the biggest cryptocurrencies in the space. They launched at Binance in April 2020 with a price of $0.84 per token, but did you know they had a presale? The early investors got their tokens at $0.22.

The difference? 64x ROI vs. 17x ROI based on current prices.

If you're trading on an exchange, you're late.

We have a saying at Presail.
"If you trade on Binance, you're too late."

For almost all cryptocurrencies you can buy on an exchange, there has been a presale before it launched. Any investor involved in that presale had a better price on their tokens than the listing price on the exchange. What's so important to understand, and we're coming back to this point further down in the article, is that everyone can access these presales.

There's no doubt that there are great investment opportunities in finding up-and-coming cryptocurrencies already on exchanges; this is, after all, crypto. However, you should remember that if you did 2x on one of your holdings, the early-stage investors probably did 10x.

Above is an example of the fundraising stages of a typical crypto project. It's controversial having Binance in the last box, and most projects never reach that exchange, but the point is to visualize the price difference and how you're the latest to the party buying on an exchange.

So how do you find these crypto presales?

Presales is quite a hidden market, so it's understandable that most people don't know about it. By doing some quick searches on Google, there's no doubt that there's been a great lack of valuable information on the topic.

You're being told to dedicate your life to research, become an influencer, or "hang out in elite communities." Okay then, great. I'll just log in to Twitter, get 100,000 followers, and call Satoshi Nakamoto to see if I can join him for dinner.

No worries; participating in presales is super easy and accessible for everyone. In the next section, I'll introduce you to investment communities and how that's your best way into early-stage investment opportunities.

Investment communities

Hundreds of investment communities are participating in presales in crypto projects. These communities are groups of individuals going together with their funds and investing together, making it possible to execute a transaction that would be impossible for most people to do alone.

The communities are usually approached by projects looking for funding directly, making it possible for you to sit at the other side of the table.

What's great is that everyone can do this, and most communities will welcome you with open arms. You'll expand your network, become better at doing due diligence (you're doing this together in most groups), and get access to early-stage investment opportunities.

I can't emphasize this enough; thorough due diligence is the key to any successful investment. It's extremely valuable to be part of a community that puts in the effort on this front. DuckDAO is a great example.

Andy, CFO at DuckDAO

When you're ready to take the next step and explore the investment community space, jump over to the article on how to get in on crypto presales. We highlighted some of the most known investment communities for you to look at.

You're early to the presale space

4.2% of the world's population owns crypto.
95% of those haven't heard about presales.

Many great new crypto projects are being developed, and investment communities play a bigger part than ever in funding these startups. Projects are starting to see that it's more valuable to be backed by a thousand dedicated community members instead of a traditional, self-funded VC. This makes finding the next unicorn accessible to everyone.

To finish the article in familiar crypto style, remember always to do your due diligence regardless of what stage you're investing in and whether it's with a community or not. There's never a guarantee that the project you're investing in will return positive ROI.

Even Bergan Bugge

Even Bergan Bugge

Account Executive at Presail