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What Is A Presale, And Why Are They Used?

The world of crypto-finance has developed a lot of its own jargon in the last few years. This can make it quite a confusing and intimidating place for newcomers. Cryptocurrencies have grown immensely in value since their inception and even the top financiers have taken notice of this.

James K.
Oct 23, 20231443 Shares19244 Views
The world of crypto-finance has developed a lot of its own jargon in the last few years. This can make it quite a confusing and intimidating place for newcomers. Cryptocurrencies have grown immensely in value since their inception and even the top financiers have taken notice of this.
A lot of people tend to kick themselves after hearing about a massive rise or fall in the crypto-world. Skilled crypto-traders have gone on to become billionaires, and Bitcoin, just one example of the many forms of cryptocurrency, has garnered a market cap of over $400 billion.
So how can you get in on the trend early? This is where pre-sales come in. Pre-sales are an important step in the process of understanding cryptocurrency finance. If you know how to research them well, and time them just right, you can make a lot of money on cryptocurrency pre-sales.

What is a Pre-Sale?

Just like the name suggests, a pre-sale is a sale that happens before the currency in question is actually launched. This is not unique to the cryptocurrency market, and is in fact a centuries-old practice.
Most of us have at least heard of property development. In property development, developers usually acquire a certain amount of capital with which to start the project. They then host investment summits that allow them to draw in interested investors who help to complete the funding of the project. These investors then hold a stake (a share) in the project and will profit as the project profits as well.
A lot of startups and well-recognized corporations have also been funded similarly, and it’s a technique that’s been proven successful for companies and investors alike for countless years now.
The world of cryptocurrency is no different, and crypto-creators tend to apply the same principle to their business strategies - often with great success. In crypto, these presales involve two parties – developers and investors – both of whom can benefit from the presales if the crypto launch is to be a success. Presales help developers raise extra capital to complete their projects. Investors can get the tokens at low prices and sell them at high prices once the crypto goes public (source: https://insidebitcoins.com/buy-cryptocurrency/best-crypto-presales).

Why Do Pre-sales Happen?

Even though cryptocurrencies are generally regarded as highly cost-effective, scalable enterprises, the more money that gets poured into them, the more valuable they become. Much like a startup company or even a large-scale corporation, these business models tend to rely on investors to become really successful.
Basically, most crypto-creators will start by developing their coin and then start marketing it to the greater public before they launch it. The idea is to get as many investors involved before the coin launches, so that it gains more value upon launch.
It’s important to note that a cryptocurrency is backed only by the assets invested in it. The initial worth of the currency is determined by the creator i.e. 1 BTC equalled around $0.0008 upon launch as set by the creator, Satoshi Nakamoto.
However, as more people start to invest in the coin, its total worth goes up in accordance with the amount invested in it. While Bitcoin did not have any pre-sales available at the time, as it was released anonymously, a lot of cryptocurrencies that followed realized the massive potential of treating their unique cryptocurrency much like any startup company or corporation.
Since then, it has become common practice for crypto-creators to run lengthy pre-sales terms before launching their cryptocurrency. This helps to guarantee that the coin will have relative success in the market as well as to stabilize it upon release i.e. it doesn’t simply crash overnight due to lack of activity.

Why Are Crypto Pre-sales Important?

Crypto pre-sales are widely considered to be one of the most predictable ways to make money with cryptocurrency. The world of cryptocurrency is very challenging, even to the most skilled investors and traders. It’s often hard to predict how a specific coin will perform, based on the fact that the market can be quite volatile.
That’s why the pros tend to love pre-sales. A pre-sale gives you the chance to invest in a cryptocurrency before it’s launched. So, if the coin does really well after launch, and the price rises dramatically, you’ll be able to make a pretty decent profit. Even if the coin doesn't have dramatic success in its initial launch phase, you’re still likely to make some profit just if the coin does reasonably well, and the price climbs even a little after launch. Some of the world’s top cryptos today performed well in their presales, most notably Ethereum, which raised over $18 millionbefore hitting the mainstream market.
Being able to vest your interest in a cryptocurrency gives you the unique chance to profit on the coin from the second it’s launched. As any seasoned veteran of the investment world will tell you, time definitely is money. However, knowing about crypto pre-sales can only be done with time and effort spent into researching the market a lot.


In general, crypto pre-sales are one of the most sure-fire bets when it comes to making cash in the world of crypto finance. Start researching the latest and greatest pre-sale trends in the crypto market today and book yourself a spot for the spectacular event that is watching a new cryptocurrency come to life. You will likely even earn a pretty decent profit doing so, so the sooner you start, the better.
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