Investments in cryptocurrencies tend to be very volatile, and early investors stand a better chance of cashing in on the profit. Learning how to buy new crypto before listing can be a game-changer, as tokens often appreciate significantly in value after public trading begins.
But it usually comes at a great cost such as scam attempts, low liquidity, and inadequate deregulation. This guide aims to help you discover and purchase new cryptocurrencies prior to their central exchange debut while protecting you against risks and maximizing gains.
How to Buy New Crypto Before Listing
To buy new crypto before listing, explore ICOs, IDOs, and private sales. Research projects, join whitelist events, and use launchpads like Binance Launchpad or Polkastarter. Always verify legitimacy to avoid scams.
What Are Pre-Listing Cryptocurrencies?
Pre-listing cryptocurrencies are digital tokens available for public purchase before listing on major exchanges like Binance and Kraken. They are often sold through ICOs, IDOs, community sales, crypto launchpads, and even venture capital rounds.
Why Do Investors Buy Pre-Listing Cryptos?
- Lower barrier of entry: Pre-listing investors get access to the tokens for a fraction of what they are selling, hence allowing them to reap the long-term benefits.
- Higher profit returns: Due to the increased recognition from the wide audience, many tokens go through a price boom when listed on major exchanges.
- First-Mover Advantage: The earliest investors don’t just benefit from an increase in price but might also enjoy airdrops, staking rewards, and even governance rights.
Investors who venture into listing tokens stand to earn a lot, but all of these opportunities come with prerequisites of timing, proper research, caution, and being wary of risk.
Buy New Cryptocurrencies Before Listing
1. Participate in Initial Coin Offerings (ICOs)
ICOs are a common way to fundraise as projects get to auction their unlisted tokens at the initial stage to early investors. The successful ICOs include Ethereum (ETH), launched in 2014 at $0.30, and Binance Coin (BNB) which started at $0.15 in 2017 and is now popular in the cryptocurrency market.
How to Participate in ICOs:
Research: You can find ICOs that are upcoming using ICO tracking platforms like Coinlist, CoinGecko, and ICO Drops.
Verify Details: Scrutinize the whitepaper, roadmap, and the team to check the validity of the project.
Avoid Scams: Always ensure you go through the official project website instead of clicking random links.
Boasting of remaining a popular fundraising method, ICOs have had more scrutiny placed upon them recently. In 2017 alone, they raised 5 billion dollars globally, and many projects still use this method to seek initial backers.
2. Engage with Crypto Communities
Initially new projects gain traction in crypto communities on Telegram, Discord, Twitter(X) and Reddit. Getting information from these communities can be overwhelming, requiring one to sift through a lot of details, as discussions often begin months before the listing.
Example:
Friend tech began as a Twitter/X program and later transformed into a community-powered initiative. Supporters could buy tokens well before they were available to the public. This approach of involving the community first can be very useful in identifying promising projects before they gain widespread attention.
3. Monitor Decentralized Exchanges (DEXs)
A variety of tokens are traded on decentralized exchanges, such as Uniswap, PancakeSwap, and SushiSwap, before being incorporated into centralized exchanges. These DEXs are often frontrunners when it comes to the listing of new tokens.
How to Track New Listings:
An easy way to keep track of new tokens is to check out cameos on CoinMarketCap, CryptoRank or DEXTools.
Check Liquidity and Volume:
Always look at the liquidity and trading volume before purchasing to ensure you’re not dealing with a low-quality project.
Case Study:
A number of people targeted the Pepe (PEPE) token when it first launched on Uniswap back in 2023. It initially gained hype before being listed on Coinbase and Binance. Those who scooped it up on Uniswap early made a killing as the token’s popularity grew.
4. Explore Crypto Launchpads and Incubators
ICOs have always been very risky. Alleviate some of those risks with launch pads and incubators, as they focus on more credible and established projects providing vetted investment opportunities.
Take Note:
Binance Launchpad: This platform has hosted successful initiatives like Tokocrypto (TKO), Axie Infinity (AXS), and StepN (GMT), which garnered millions of dollars during the token sales.
Along with DAO Maker, Seedify, and Mycoinpoll is renowned for pioneering new and innovative projects, making it a safer investment alternative for most investors.
5. Analyze Venture Capital Investments
Prominent venture capital firms, like a16z or Sequoia Capital, are generally among the first investors looking into a project before it publicly launches. Many successful blockchain projects typically receive funding from VC firms, and these firms will continue to fund promising crypto projects with an expectation of exponential growth.
Example:
Solana’s (SOL) presale received substantial funding from a16z and Alameda Research, driving its growth. Early investors were well-compensated as it became one of the top cryptocurrencies by market cap.
Tracking VC-Backed Projects
- To stay updated on investments by VC firms like a16z, Paradigm, or Multicoin Capital, follow them on Twitter/X.
- Cayuse, Messari, and Cointelegraph are innovative platforms you can use to keep track of funding rounds and find exciting projects looking for funds.
6. Investing in crypto presales
In crypto presales, investors can buy tokens before they become publicly available and sell them at a higher price later. If the project gains popularity and widespread adoption, it can achieve extraordinary returns.
How do crypto presales work?
Projects can sell their tokens in phases. Assuming there is a discount and bonus system employed for early buyers, they are rewarded with bonuses.
Investors can execute such presales with the aid of crypto launchpads, the project’s website, or even through private sales directly.
Trending Presale Platforms:
PinkSale: This is the magnificence of token presale, and the platform is famous for the launch of the presale tokens.
BSCPad & TrustPad: Early-stage investment launches on the Binance Smart Chain.
Polkastarter, DAO Maker, and Mycoinpoll are Ethereum-powered platforms that enable initial investments in new projects.
Illustration:
Tamadoge (TAMA) In presale, it made $19M, and after going public, the price skyrocketed.
Benefits and Risks of Early Investment
✅ Benefits:
- Buy tokens on a centralized exchange for a lower cost: Confidently purchase tokens at a lower cost before they become available on centralized exchanges.
- Availability of Great Returns on Investment: Early investors can make a fortune after tokens get listed for sale if they perform due diligence appropriately.
- Additional Promotions: A well-wisher from afar is likely to receive airdrops, staking rewards, and even governance privileges provided by the other side that result in additional gain.
⚠ Risks:
- Scams and Fraud: ICOs, ID-oriented, and tokens offered for sale on decentralized exchanges have increased odds of being fraudulent. Check the document provided of the project before proceeding with the set investment plans.
- Low Liquidity: The Illiquidity of some pre-listed tokens may pose a difficulty to sell them after they go live, severely limiting trading capability.
- Regulatory Uncertainty: A while ago, ICOs as well as tokens open to sale had a higher risk of regulatory enforcement action in certain markets which jeopardizes investors.
Best Practices for Investing
- Conduct Thorough Research: Always read the whitepaper, team details, and project roadmap to understand the project’s vision and long-term goals.
- Analyze tokenomics—supply, allocation, and vesting—to assess the project’s long-term value and sustainability.
- Interact with the Community: Block groups on Telegram or Discord help in receiving information as well as measuring the sentiment around the project.
Diversify Your Portfolio
Refrain from funneling all investment money into one outlayer project. Maximizing the probability of getting lucky with a token means investment diversification.
- Mix trusted coins with risky assets to balance your portfolio.
- Choose Strong Wallets and Exchanges
- For better security, store your tokens in Ledger or Trezor hardware wallets.
Avoid sharing private keys and make sure to check URLs to avoid phishing attacks.
Conclusion
Investors research extensively and time their investments precisely to profit before cryptocurrencies get listed on major exchanges. By using ICO trackers, crypto launchpads, and DEX aggregators, you can find the best investment opportunities if you start early.
Check the project’s credibility, monitor VC spending, and engage in crypto communities to boost your chances of success. Staying informed and cautious helps you invest in new opportunities before listing.
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