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How to Buy New Promising Tokens Before They Surge in Price
How to Buy New Promising Tokens Before They Surge in Price
05 Sep, 2024
How to Buy New Promising Tokens Before They Surge in Price 2

There are several ways to discover and purchase new cryptocurrencies before they are listed on major exchanges. These include participating in token presales, initial exchange offerings, crypto airdrops, or taking advantage of launchpool and launchpad campaigns on crypto launchpad platforms like BullPerks and GamesPad.

In the fast-paced world of crypto, being early in investing can be the key to unlocking the substantial returns that attract so many speculators. Once a cryptocurrency is listed on major exchanges, it’s often too late to achieve the kind of gains that early investors seek when buying native tokens through a crypto launchpad.

In this article, we’ll guide you on how to access new crypto projects before they get listed and explore the tools available to help identify promising opportunities.

Find Promising Blockchain Projects Before They Are Launched

Finding promising cryptocurrency startups is an integral part of successful investing

Source: Freepik

Identifying new tokens directly on the blockchain is essential. Platforms like Ethereum are home to many new blockchain projects, so starting your search there makes sense.

Block explorers such as Etherscan allow you to track transactions and spot new tokens as they emerge. Familiarity with DEX data aggregators like DEXTools can help you discover the most traded crypto currencies, while DeFi portfolio trackers, such as DeBank, provide insights into the movements of successful retail investors.

Blockchain analytics platforms like Dune Analytics offer a more comprehensive view of on-chain activity, making it easier to identify emerging projects by analyzing large-scale blockchain data.

Keep An Eye on the Coming Token Presales of Promising Crypto Projects

Powering innovation: investing in crypto startups at early stages

Source: Freepik

Another important path to early investment in the cryptocurrency market is through crypto presales, which allow investors to invest in tokens before they are officially launched and listed on exchanges.

This fundraising mechanism offers an opportunity to buy into blockchain businesses at an early stage, often at a discounted price, before the token becomes publicly available. This early access can lead to significant gains if the startups perform well post-launch, as tokens purchased during the presale may increase in value once they hit the open cryptocurrency market meaning more gains.

Platforms like CoinCodex offer valuable resources for tracking upcoming presales and token sales, maintaining an updated list that includes a variety of sale types, such as Initial Coin Offerings (ICOs), Security Token Offerings (STOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs).

In addition to providing details on active and upcoming presales, CoinCodex also offers insights into completed sales, allowing investors to analyze trends and outcomes of previous token launches for more security.

ICOs

ICOs were the original method of fundraising for blockchain projects, where tokens were sold directly to the public, but this model has evolved with new approaches like IEOs and IDOs.

IEOs

In an IEO, tokens are sold through a cryptocurrency exchange, providing an added layer of security since the exchange platform typically performs due diligence on the project before listing it.

Finding the best IDO launchpad platform to secure return on investment

Source: Freepik

IDOs

An IDO, on the other hand, takes place on decentralized exchanges (DEXes), offering greater accessibility and liquidity immediately after the token sale, but without the same level of centralized oversight. IDO is normally launched through crypto launchpads.

STOs

STOs are another form of presale, focusing on tokens that represent financial securities, and they are subject to stricter regulatory compliance.

Risks and Challenges for Users

While the potential for high returns exists, crypto presales come with significant risks. Projects at the presale stage are often in their early development phases, which means there is limited information available to users to assess their viability and long-term success.

Additionally, this fundraising model a minimum amount of investments, which may not be accessible to all investors. There is always the possibility that the project could fail to deliver, resulting in a loss of the initial investments.

How to Research a Project for Investing

Thorough research is essential when evaluating crypto presales for additional security.

Investors need to assess the project's whitepaper, the team behind it, the technology, and its potential market impact.

Understanding the tokenomics—how the token is distributed and what its use cases are—can provide critical insight into its future value.

Platforms like CoinList offer token sales for high-quality projects, but with more stringent requirements. Investors must often complete a Know Your Customer (KYC) process, and there may be restrictions on who can participate ro ensure regulatory compliance.

However, these more rigorous standards can provide more security, as platforms like CoinList tend to list more established projects with greater potential for success.

Overall, while crypto presales can be a high-risk, high-reward opportunity, careful research and due diligence can help investors identify projects with strong potential. Those who enter at the presale stage are essentially betting on the future success of the project, and when done wisely, it can lead to substantial returns.

Signing up with a top launchpad platform for the best IDO offerings

Source: Freepik

Another strategy for accessing new cryptocurrencies before they are listed involves participating in crypto launchpads and launchpools. Launchpads have become a popular way for projects to introduce their tokens to the market, providing early investment opportunities to users who are willing to engage with the platform.

Projects like BullPerks and GamesPad are among the many cryptocurrency launchpads that offer token sales for upcoming projects. Through these top launchpads, potential investors can buy a project’s native tokens at an early stage, typically before they are listed on major exchanges.

However, participation often requires holding the launchpad’s native token, which grants users eligibility to invest in the new tokens being offered.

Crypto launchpads are particularly known for hosting initial DEX offerings (IDOs), which allow projects to raise funds through decentralized exchanges (DEXes).

IDOs give early access to investors, enabling them to purchase the native virtual currency at a set price during the launchpad's token sale event.

One of the key advantages of IDOs is the immediate liquidity they provide. Once the token is launched, a liquidity pool is created on a DEX, allowing investors to trade the token immediately after the sale, which helps to stabilize the token's price.

Participation in a launchpad event often involves a tiered system, where the number of native tokens held by the user determines their level of access. Higher tiers typically offer more favorable conditions, such as a larger token allocation or earlier access to the sale. Some of the top crypto launchpads also use a lottery system for allocating participation slots, particularly for highly anticipated token sales.

Launchpools, Differences from Launchpads

Crypto launchpads or a launchpool platform?

Source: Freepik

Launchpools, on the other hand, offer a different approach to early-stage token acquisition in the cryptocurrency market. Instead of purchasing crypto tokens, users can stake a certain amount of their crypto assets (often stablecoins or the platform’s native tokens) to earn rewards in the form of newly issued tokens.

This staking process allows users to accumulate funds in the form of crypto tokens over time before they become available on exchanges. Binance, one of the largest exchanges, pioneered this method with its Launchpool platform, allowing users to earn new project tokens by staking assets like BNB or BUSD.

Both launchpads and launchpools provide unique opportunities for early participation in promising cryptocurrency projects. By getting involved in cryptocurrency launchpools and crypto launchpads, investors can gain early access to crypto tokens, often at favorable prices, before they enter the broader market and will be accessible to all community members. This can lead to significant returns, particularly if the cryptocurrency project performs well after its public launch.

How an Initial DEX Offering Works

An IDO with a launchpad platform

Source: Freepik

Here’s how the process of an Initial DEX Offering (IDO) typically unfolds on a crypto launchpad.

Preparation Stage

First, during the preparation stage, project teams and developers carefully plan their crypto project, creating a technical roadmap, defining token economics, and building the crypto project's website.

This groundwork is essential to ensure the blockchain projects are ready for launch. Next, the project team seeks out a suitable crypto launchpad for the IDO.

Crypto projects undergo an audit and move to a fundraising stage through the chosen crypto launchpad. Popular exchanges like Uniswap, PancakeSwap, and SushiSwap are often used for listing the token launched through a crypto launchpad.

Token Presale Stage

Once the crypto launchpad platform is secured, the token presale takes place. Early investors, usually pre-registered on a whitelist by a crypto launchpad, participate in the presale by purchasing crypto tokens at a special price.

However, they do not receive the crypto tokens immediately but instead get token commitments, with actual token distribution happening later.

Public Token Sale

Following the presale, the public token sale begins. The native tokens may be sold in batches to more investors with predefined volumes and prices, or through an auction where the crypto token price is determined by competitive bidding.

Establishing a Secondary Market

Once the public sale is complete, the project team lists the crypto token on an exchange platform by creating a liquidity pool, which includes their tokens and external contributions, like a portion of the launchpad's IDO proceeds. This step establishes a secondary market for the crypto token.

Post-IDO Stage

In the post-IDO phase, investors finally receive their crypto and can trade them on the exchange platform or use them within the cryptocurrency project’s ecosystem.

Launchpools

Launchpools, on the other hand, allow community members to participate in staking and earn new tokens by staking coins, often listing the token shortly after the staking period ends.

Look for Crypto Airdrops

Hunting for crypto airdrops is yet another way to acquire cryptocurrency before it hits the market. Airdrops often distribute free tokens as a promotional tool or to ensure fair distribution among community members and investors.

Listing sites can provide details on upcoming cryptocurrency airdrops, while interacting with decentralized finance protocols that haven't yet issued their own tokens may position you for retroactive airdrops when these projects decide to launch a token.

Follow the Latest News and Updates

Finally, staying up-to-date with the latest news and being active in crypto communities is crucial. Forums, social media platforms, and curated articles on emerging projects can provide valuable insights into promising new coins and tokens before they gain broader attention.

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