How to get in on crypto presales
So you want to get in on the next big thing in crypto? Participating in presales can be the way to go, and these early bird opportunities can offer great returns on investment.
In this article, I'll go over how to get in on it and what to consider before investing.
A quick introduction
Crypto presales are events where participants can buy tokens or coins before they are released to the general public. These presales give early investors access to the new tokens at a discounted price and allow companies to raise money for their projects while developing.
You can look at it like the web3 way of investing in an early-stage company before it's listed on a stock exchange.
If you want to understand more of what happens before a token is launched, I recommend starting on our article on how you're too late if you're trading on Binance.
Ways to get in on crypto presales
Participating in crypto presales has been somewhat complex for anyone new to the space. There hasn't been any simplified go-to guide, and navigating the space without a network to point you in the right direction can be challenging. Hopefully, this article can help with changing that.
Whether through a community or a launchpad, there are a lot of possibilities for the average Joe to participate in crypto presales. In this article, I'll keep most of the focus on investment communities - which I think is the way that will give you the most benefits in the long run.
Joining an investment community
Investment communities, also known as community VCs or syndicates, are essentially groups of people who share a common interest in investing and trading crypto. In addition to being an excellent platform for networking and shared knowledge, you'll get access to a deal flow of presales for early-stage crypto projects.
The way it works is that the community members pool their resources to handle a transaction that would be impossible to execute individually. This tactic allows anyone to get in on the next big thing together with the prominent, wealthy, traditional VCs usually running this business. Investment communities rocks.
The communities usually operate with a private channel or server on Discord or Telegram, creating their personal ecosystem of private investors doing due diligence together. It's a great way to be a part of something bigger in this space, learn new things, and even make new friends. This is also where the deal flow is being shared.
So, where do you find these communities?
We know most communities bring in new members through "word of mouth" and members inviting friends. While there's not any platform to pick and choose from, there are a lot of communities out there. Most of them are on Twitter, so searching for relevant keywords like "crypto investment community" or "crypto VC" can give you a head start.
We're going to change that. One of our goals at Presail is to make presales easier and more accessible for everyone. In the meantime, I'll highlight some known communities for you in this article.
First, there are some factors you should take into consideration before applying to join a community.
- What's the entry fee?
- What's the commission you will pay per investment?
- How big an allocation can you expect?
- What's the minimum and maximum contribution amount per investment?
- Have the community invested in many successful deals in the past?
For some communities, you'll have to hold a specific token or NFT to get access, while some take a fixed fee or are entirely free to join. However, free access isn't necessarily the best thing to aim for. Most communities have websites where they front their portfolio and track record of deals they've raised funds for.
Doing your research and learning about the community's previous investments should be on your to-do list, as this can be a good indicator of what to expect from the group.
Here are some known communities worth taking a look at. Note that not all communities are open to the public at all times.
Participating through launchpads
Crypto launchpads are platforms that enable crowdfunding for early-stage projects. This allows the projects to raise their funds from heaps of private investors, while the investors benefit from the low token price before its launch on the market.
Projects usually raise funds for their last round through launchpads before tokens are released to the public. This means that investment communities and other VCs might already be onboard at a better price.
With that said, there are some benefits. Predicting how a project will perform is easier the closer they are to launch, and the best launchpads are selective on which projects they're working with.
The launchpads, therefore, safeguard investors by screening out potential scams or rug-pulls, ensuring the projects have reached a level of maturity and that it offers a scalable infrastructure. They're actually doing a lot of the due diligence for you.
Here is a list of some of the most known launchpads out there.
Crypto presales have come to stay. We're still early in the cryptocurrency space, and the increase of projects being developed and investment communities making their mark as big players will streamline the process of onboarding new private investors to the market.
The presales are no longer a game just played by the wealthy, traditional VCs, allowing everyone to hit the next unicorn before it launches.
By the way, one final tip. Joining a community that uses Presail to automate its presale workflow will give you access to an investor portal to track your investments. With all the complicated vesting schedules and different distribution dates you're about to experience, that's worth considering.