How To Evaluate a Crypto Presale

Cryptocurrencies are one of the most exciting asset markets for the time being. People mostly use crypto coins for payments but some also put assets into them as a form of investment.

In this article, we explain how crypto presales work and how to tell whether you should invest your money in such financial practice.

What Is a Crypto Presale?

A crypto presale refers to an offering of tokens before the official public launch of a crypto coin. This practice has proven to typically benefit both crypto enthusiasts/investors and coin development squads.

Crypto coin developers, on the one hand, get a chance to raise enough assets to finance and complete their crypto development projects.

Investors, on the other hand, can get into possession of new cryptocurrency before some other buyers.

Organizing a presale can help developers build hype around their project and a sense of exclusivity for those first-applied buyers.

Those who are planning to take part in forthcoming early-bird events should check out the presales list in techreport.com and register on time. The number of seats is typically limited on such occasions, which is why making a reservation on time is crucial.

The Pros and Cons of Investing in Pre-Sales

Just like any other investment, pre-selling does carry its own bag of potential bugs.

For instance, if the development crew doesn’t finish and launch their coin, there won’t be any market validation of the crypto in question. Hence, the early buyers and investors won’t make a profit; au contraire.

Even if the end product sees the light of day, it’s hard to tell in advance whether its price will surge or plummet. For some investors, that’s the beauty of non-conventional investments – the fact that they can’t predict what will happen fuels their investment drive. No matter what group you belong to, learn more about crypto investments in general before you register for a new coin pre-sale.

What sometimes happens is that the first buyers quickly sell the pre-purchased token(s) immediately after the launch, to make a profit. In such cases, the coin value usually drops but it might recover after some time. It all comes down to the number and volume of investors who offloaded those coins.

The type of the crypto product in question can influence the potential profits, as well. For instance, investing with crypto payments differs from supporting an eCommerce website project. The former is potentially more likely to bring revenue but it also comes with certain legal compliance requests that might postpone profit generation. The latter, although probably lower in revenue, could start bringing profits sooner. It all comes down to the investor’s expected return on investment and niche preferences.

Green Flags and Red Flags for Pre-Sale Buyers

Whether or not crypto pre-sales will become part of your investment portfolio depends on various factors. Let’s illustrate them through several red and green flags every potential investor should spot before decision-making.

The first green flag is that the project team consists of renowned experts in the crypto and blockchain field. They’re developers, compliance specialists, and finance pundits who have a proven track record of successful coin launches. They should also provide a straightforward development trajectory with price predictions. Even though this would only be a projection, since no one can tell whether it would actually go that way once it’s launched, not offering such a calculation is a potential red flag.

Speaking of other red flags, be cautious with teams that want to hurry things up. If you’re nudged too aggressively to make up your mind, chances are higher that the crew in question might not build anything but only take the investments and run.

Also, if the community – which you should be following if you’re planning to become or already are a crypto investor – prevalently condemns the project in question, you better skip it.

Finally, don’t enter a pre-sale crypto investment if you’re not ready to lose the invested assets. Because, even if everything goes well on both the development and launch side, you can never tell what can kill the buzz and bury the coin price.

Hence, plan your moves wisely, and don’t put all your crypto investment eggs in one pre-sale basket.

Hope the explanations and tips shared above will help you make wise decisions, presale-wise.

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