How to Earn on Coins Before They Hit the Market

[Allocaio]

The cryptocurrency industry is showcasing significant growth in 2024, drawing in international investors of different caliber. As of May 22, the market capitalization reached $2.57 trillion, with Bitcoin, Ethereum, and many altcoins increasing in price by 50% this year. The most substantial profits since the start of the year belong to investors that got in new projects, like Dogwifhat, where returns exceeded 20x. Early bird investors, pools, and communities invest in such projects at the earliest stages, securing the lowest prices for tokens. The most common formats of early token investments include presales and allocations.

Token Presales and Allocations

A Presale is an investment stage where crypto projects sell their tokens before officially listing them on an exchange. Presales typically occur in multiple stages, with the token price gradually increasing, culminating in the token’s launch on public markets.

Allocation refers to the distribution of a certain number of tokens among investors participating in the early funding rounds of a project. Investors purchase lots and subsequently receive tokens. Allocations operate similarly to presales, offering investors access to tokens at favorable terms.

Presales and allocations can be open, private or of a combined type, with information about the early investment stages shared only among a select group. The most promising projects often secure support before any public announcement, resulting in fewer tokens available in the public presale stage.

[albon]

From the last part of your point, how can you make a good profit from a token given a private sale and a public sale? Actually people are now more aware about this so they don't want to buy tokens by trusting private sales and public sales. Before a token hits you can buy from the pre market if you want, as there are now good project listings as a pre market on many major exchanges. Currently lots of good new projects are starting trading right after pre market listing where lots of investors are getting profit.

[kai]

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Before a token hits you can buy from the pre market if you want, as there are now good project listings as a pre market on many major exchanges. Currently lots of good new projects are starting trading right after pre market listing where lots of investors are getting profit.

If I'm not mistaken, Premarket also makes the price of the token soar so high that when the token price is listed it is Dump. Isn't this dangerous for us to invest in Premarket? Personally, I don't want to buy Premarket coins because they tend to be manipulated because I noticed that ByBit Exchange has Premarket and after listing the price is Dump. Cmiiw