Understanding Cryptocurrency Presales: A Complete Guide on How to Stay Ahead of It.

Hello everyone, How are you doing, I welcome you again to my blog in the Steem Alliance community.

Today, we will discuss an interesting topic on the platform which will be: Understanding Cryptocurrency Presales: A Complete Guide on How to Stay Ahead of It

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• Introduction

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Cryptocurrency presales, also known as pre-ICOs, are a popular fundraising tool used by blockchain projects to raise money before their actual initial coin offering (ICO) or token sale.

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In this article, we will discuss cryptocurrency presales, how they work, and how to participate in one efficiently.

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What is Cryptocurrency Presale?

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A cryptocurrency presale is a fundraising method organized by a blockchain startup before its official ICO or token sale.

During a presale, early investors are given the opportunity to purchase tokens at a discount or with extra benefits as a reward for their early participation.

The monies earned during a presale are usually used to fund the development and launch of the project.

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How does a cryptocurrency presale work?

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Cryptocurrency presales usually follow the same pattern before launching in the following order:

1 . Announcement: The project will surely have to announce the presale, including start and end dates, token price, and any incentives or discounts that will be given to the investors as early benefits.

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2 . Whitelisting/KYC: To comply with regulatory requirements, investors who are interested in participating in the presale may be required to complete a whitelisting process as well as Know Your Customer (KYC) verification.

3 . Token Allocation: The project then establishes the overall amount of tokens that will be available for presale, as well as the allocation for each of these investors which will be based on their contribution(the amount invested).

4 . Contribution: Investors make contributions to the project in exchange for tokens, Payments are normally done using common cryptocurrencies such as Ethereum (ETH), BNB, or USDT.

5 . Token Distribution: After the presale, the project distributes tokens to investors' wallets based on the allocated amount.

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How to participate in a cryptocurrency presale

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Participating in a cryptocurrency presale consists of many steps, be sure to read the steps effectively:

1 . Do Your Research: Analyse extensive research on the project, team, and whitepaper to understand the goals, technologies, and potential risks of the investment.

2 . Registration: If necessary, complete the whitelisting and KYC verification steps to be qualified to participate in the presale you are interested in so as not to miss out.

3 . Contribution: Send the necessary amount of cryptocurrency, some do have a minimum token you could send to participate, so be ensure to send the right amount and above to the project's wallet address during the presale period.

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To avoid errors, make sure that you follow the project's guidelines.

4 . Token Receipt: Once the presale has ended, the project will send the tokens to your wallet. Make sure you store them securely till the launching date, then it is up to you how you manage your risk from there.

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Conclusion

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Cryptocurrency presales might be a lucrative investment opportunity for early blockchain project supporters, provided you have the liquidity for it.

However, they also have their own risks, such as regulatory uncertainty and the project might eventually fail, which Is why It is necessary to carry about a good extensive research and due diligence before engaging in any presale.

Also, make sure that you follow the project's instructions carefully to avoid any potential complications throughout the pre-sale period.

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In the next article, we will discuss how to carefully analyze projects pre-sale that have more winning rate and how to stay away from the bad ones

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^{' NB: This post concerns education, not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor}

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