To date, the crypto market is flooded with thousands of crypto-assets, and their number is growing exponentially. The lion’s share of tokens enters the market thanks to presale. Presales are held regularly and attract millions of dollars of investment. However, investors do not always get what they expect. Today’s article will help you figure out what a presale is, how to choose it, and how to pay for a crypto presale with NOWPayments.
- Presales can bring early investors a significant part of the profit.
- As is the case with any financial tool, before investing, it is necessary to conduct a thorough analysis.
- NOWPayments allows you to pay for crypto presale in an easy and convenient manner.
What is cryptocurrency presale?
Presale is a kind of crowdfunding. This is when a certain crypto project declares it is a promising product, and funds are needed for further development. Investors provide capital to the project and, in return, receive its tokens, which will benefit them in the future, for example, the right to participate in the project’s governance or simply a profit from the token price increase.
The number of tokens can be fixed or a certain percentage of the total supply. The price for the token is set by the project team. It can vary at different stages and depend on the conditions of a particular presale.
Presale for any project is an opportunity to raise funds for further development, and for investors, it is an opportunity to purchase tokens at a lower price.
How to pay for crypto presale?
Before sending your funds, you need to understand who and what you are paying for. Therefore, before devoting your hard-earned money, DYOR (do your own research) and analyze the following factors:
The first, and perhaps the most crucial, success indicator is the project’s tokenomics. It is necessary to study what utility the token carries, what supply it has, and what model of token distribution and unlocking. If this distribution is described in a nutshell, then this is a clear sign of a scam. Study how many percent of tokens will go to marketing, operating expenses, the product itself, and how much goes to early investors, partners, founders, and so on. What is the token release schedule, so if tokens come into circulation too quickly, the price is likely to fall. Study the hard and soft cap, as well as analyze whether it is likely to achieve them.
Be sure to see if there are links to social media and evaluate the activity of people. Evaluate the reasons for both positive and negative reviews. Analyze how the project team is communicating with the community.
Evaluate the project team and their business experience. If they do not have successful experience in running their business, then they most likely will not be able to grow a real money-making business out of the project.
White paper. The document must be written in clear language. All aspects of the project should be described in detail:
- the tasks that the project solves;
- roadmap of the project with precise deadlines and steps for the development of the project;
- the scheme of the project and possible partner integrations.
To participate in a presale, you need to follow these steps:
- First of all, you will need a crypto wallet, for example, Guarda or Metamask.
- Next, you should take care of the available funds to pay for the purchase. In your wallet, generate a crypto address (public key) for the cryptocurrency you want to use as payment.
- Buy the required amount of crypto on a reliable crypto exchange, such as Binance (custodial) or ChangeNOW (non-custodial).
- Transfer the cryptocurrency to your wallet.
Select a reliable presale campaign and go to the presale address page.
- Carefully read the terms of the presale.
- Decide on the amount you want to use to participate in the presale.
- Go to the payment page and, in case the project happens to support NOWPayments, click “Pay with NOWPayments”. If not, choose the crypto payment provider the project supports.
- Select the cryptocurrency you want to pay with.
- Send the required amount to the recipient’s address or scan the QR code (in the case of a mobile crypto wallet).
- That’s it! Wait until the end of the presale period and get your purchased tokens.
So, the obvious advantage of a presale is the opportunity to buy tokens at a lower price than before the start of open trading on exchanges. But, at the same time, you need to do your own research and consider the risk of losing your invested funds. NOWPayments provides a payment gateway for crypto projects.