How to Buy New Crypto Coin Before Listing?

We all are aware that the cryptocurrency market is dynamic in nature. However, their constantly evolving nature is paving the way for traders to buy and exchange cryptos in a beneficial way. However, early investment in the new cryptocurrency before it gets listed is turning out to be a highly lucrative option for marketers.

In this blog, we will highlight the process of buying new crypto before listing along with covering essential steps, risks, and some of the best practices you can opt for. 

Understanding Pre-Listings Crypto Coin

Pre-listing refers to the period before a cryptocurrency is available for trading on major exchanges. During this time, investors have the opportunity to buy the new cryptocurrency through various methods. Here’s a detailed and simplified explanation of these methods:

1. Initial Coin Offerings (ICOs)

They are the crowd-funding events for new cryptocurrencies. First, the project is announced and then the project team publishes a document called white paper which explains about the project and how you can raise the funds from it. After that investors can buy tokens directly from the project using cryptocurrencies like Bitcoin and Ethereum. In return for their investment investors received tokens at lower prices before they were available on public exchange.

2. Initial Exchange Offerings (IEOs)

These are similar to the ICOs but are conducted on cryptocurrency exchange. The project partners approach the cryptocurrency exchange to host the token sale which is verified by the exchange to ensure the legitimacy and potential. After this, the investors can buy tokens directly through the exchange platform using their account. 

3. Decentralized Finance (DeFi) Platforms

These platforms allow the investors to purchase the taken directly without a central authority. Platforms like Uniswap or Pan cake Swap allow investors to purchase new tokens directly on the platform and add them to their wallet.

4. Private Sales and Presales

These are the fundraising round and tokens are sold to selected investors before the public launch. These are made to a selected group of investors such as venture capital and institutional investors or early supporters of the project. The tokens are sold at discounted prices with the aim of providing an opportunity for early investment before the general public can buy tokens. 

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Steps to Buy New Crypto Before Listing

Research the project

The first step involves conducting thorough research before getting into the project. You must look into the project’s white paper that clearly explains the project goal and tokenomic, look for the team members that are experienced and reputable, and check for the project technology that is innovative and viable, Is the community strong and active to support the project? Does the project have a market potential? Along with this do also verify the project’s legitimacy to avoid scams in the future. 

Identify the sale type

The second step is to determine whether the token sale is an ICO, IEO, or on a DeFi platform. Each type has different procedures and requirements. As ICOs require registration on the project’s website, IEOs need an account on the hosting exchange, and DeFi requires a compatible cryptocurrency wallet.

Prepare a currency wallet

The third step involves creating a wallet for storing your new tokens. You need to choose a wallet that supports the tokens blockchain for example Ethereum, Binance smart chain, etc. Some of the popular wallets you can choose from are:

1. MetaMask: A versatile wallet compatible with Ethereum and Binance Smart Chain.
2. Trust Wallet: A mobile wallet supporting multiple blockchains.
3. Ledger Nano: A hardware wallet providing high security.

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Acquire Necessary Cryptocurrency

Most new tokens are sold in exchange for established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or Binance Coin (BNB). You can purchase them by registering on a major exchange (e.g., Binance, Coinbase), then depositing fiat currency or other cryptocurrencies, and at last purchasing the required cryptocurrency (BTC, ETH, BNB).

Participate in the Token Sale

There are three platforms and you need to follow their procedure to get their platform:

1. ICOs:
   1. Register on the project’s website.
   2. Complete KYC (Know Your Customer) verification if required.
   3. Send the required cryptocurrency to the provided address.
2. IEOs:
   1. Register and verify your account on the hosting exchange.
   2. Deposit the required cryptocurrency into your exchange wallet.
   3. Participate in the IEO during the specified time frame.
3. Defi Platforms:
   1. Connect your wallet to the platform (e.g., Uniswap, PancakeSwap).
   2. Swap your cryptocurrency for the new token directly on the platform.

Risks and Precautions

Investing in new cryptocurrencies before they are listed involves significant risks. Here are some key considerations:

1. You should always verify the project’s legitimacy through independent research as there can be fraudulent projects in the market that can exploit the height for new tokens. 
2. You need to be informed about relevant regulations as different countries have different regulations and it can impact the legality and security of your investment.
3. So, there are chances that when the new tokens are released they might be extremely volatile. So, prices can be dropped significantly after the initial hype. 
4. Do ensure that selling your tokens may be challenging due to the low liquidity. So, be prepared to hold your investment for a longer period. 

Learn how to profit from crypto mining for more information so that you can make good profits from the market.

Frequently asked questions (FAQ)