In the realm of cryptocurrency, investors and whales know the benefit to buy crypto before listing on CEXs (Centralized Exchanges), and they do this to make quick profits as the project gets listed on CEXs. Now you may be wondering how to buy crypto before listing and taking advantage of early investing, as well as other benefits.
In this article, we’ll learn how to buy crypto before listing, the benefits of investing in crypto before listing, ICO, IDO, and many more things. So, read till the end for a complete and better understanding.
4 Ways to Buy Crypto Before Listing?
Buying a cryptocurrency before the listing has several advantages, but to get those advantages, crypto users need to know how they can buy crypto before it gets listed on major CEXs such as Binance, Coinbase, OKX, and others.
Here are the 4 different ways through which crypto enthusiasts can buy cryptocurrencies before they get listed on DEXs:
Crypto presale
Crypto presale is a method through which the web3 crypto project raises funds to support their project during the initial phase and before the launch of their tokens through an Initial Coin Offering (ICO). In the presale, the web3 project offers its tokens only to the selected investors at a discounted price and many incentives, including token airdrops, bonuses, and many more things.
Besides, lots of benefits crypto presale also have risks such as project failure, regulatory issues, exploiter attacks, lack of liquidity, and others. However, investors as well as crypto giants prefer crypto presales to make massive returns from their investment once the token gets listed on DEXs.
Additionally, it is also important to do deep research before heading into a crypto presale.
Initial DEX Offering (IDO)
The Initial DEX Offering (IDO) is also a fundraising tool for the web3 crypto project, which takes place on a Decentralized Exchange (DEX) similar to the traditional IPO (Initial Public Offering), but here there isn’t any central authority involved. However, crypto projects use IDO to raise funds as well as to list their tokens on DEXs.
In IDO, crypto investors and retailers are eligible to buy the project tokens directly through DEX without listing on major cryptocurrency exchanges. Additionally, as an early contributor and supporter, IDO offers lots of benefits. Here you’ll get tokens at a discounted price, free airdrops, and many more things.
Besides benefits, it also has risks like smart contract vulnerabilities, regulatory issues, and a lack of liquidity.
Token Airdrop
Airdrop is another way to add cryptocurrency before it gets listed on major cryptocurrency exchanges, and you will receive a massive return on your investment. However, some airdrops are free, while in some airdrops, you need to make an initial deposit to support cryptocurrency projects in their token listing. In a free airdrop, you have to behave as a participant and contribute to the project; in return, you will receive a free airdrop.
However, Airdrop is also a marketing tool to raise awareness about the crypto project, where they distribute free tokens in the form of a token airdrop.
Launchpad Platform
This is another type of adding a token to your wallet before it gets launched on DEXs. Here, to add a crypto project token, all you need to do is stake an amount of tokens into a launchpad for a specific period, and later, when the token gets listed, you will receive a free token based on the amount you staked in the launchpad.
However, Launchpad also offers additional benefits to the participants, like bonus tokens. Currently, a Launchpad platform is available on the major cryptocurrency exchange Binance.
All the previous methods to buy cryptocurrency before listing are much more beneficial; you’ll get tokens at the lowest price (discounted price), and sometimes you’ll also receive free airdrops, lots of incentives, and many more things.
Despite the optimistic view, it also comes with many risks, such as a lack of liquidity, regulatory concerns, and smart contract vulnerabilities. One more thing users need to understand: before getting involved in an ICO or IDO, make sure to do proper research.
Benefits of Buying Cryptocurrency Before Listing
To buy crypto before listing offers several benefits, which are as follows:
- You’ll get the tokens at a discounted price as compared to when they get listed on DEXs. This is because you support the crypto projects in their early stage.
- As an early investor, you’ll also get lots of bonuses in the form of airdrops, also get an invitation to exclusive events and meetups, and many more things.
- As you buy tokens at a discounted price, if crypto projects complete their successful launch, you’ll gain a massive return on your investment.
- As an early investor, you’ll get to know more insights as well as the latest developments in the cryptocurrency landscape, which will help to make informed decisions.
However, these are the following benefits you’ll get if you buy cryptocurrency before its listing on DEXs.
What is an ICO (Initial Coin Offering)?
An ICO stands for Initial Coin Offering, also a method to buy crypto before listing, which is used to raise funds for a crypto project, just like a traditional IPO.
In this, investors will get the project’s tokens in exchange for funding the crypto project. However, to raise funds through an ICO and attract investors, crypto projects typically create a white paper with proper roadmaps and also cite their tokenomics.
Additionally, if an investor is interested in the project, they can easily buy the project tokens either with cryptocurrency or with fiat. The main reason for crypto projects to offer an ICO is to raise funds for the initial development of the project, where they use the funds to develop the project, such as in marketing, project expenses, and also during the token launch.
However, ICO investors, besides getting projects’ tokens, also get lots of benefits like lots of bonuses, airdrops, exclusive invitations to events, and many more things. Besides benefits, it also comes with heavy risks like project failure to sustain, regulatory concerns, and smart contract vulnerabilities.
So, before getting into ICO, make sure to do good research, and look for a big personality that is backing the project and the goal of the project.
ICO vs IDO
ICO (Initial Coin Offering) | IDO (Initial Dex Offering) | |
1 | In ICO, the project’s token sale is managed by a central authority. | As it operates on DEXs, it eliminates central authority. (Promotes decentralization) |
2 | In an ICO, investors need to complete KYC before participating in it. | IDO, anyone can easily participate in it as it works on DEXs. |
3 | In ICOs, projects’ tokens are costlier as they involve a central authority. | While IDO projects’ tokens are cheaper than ICO and here investors gain massive returns on their investment. |
Conclusion
In the crypto industry, projects offer token presales at a very discounted price while fundraising, where crypto enthusiasts show their interest and make heavy investments before the token gets its listing on any exchanges, and later they benefit. Buying crypto before listing offers lots of benefits to its early investors, like airdrops, bonuses, exclusive invitations to events, and many more things. However, these benefits come with heavy risks like regulatory concerns, liquidity issues, and smart contract vulnerabilities.
How do I buy crypto before launching on Binance?
To buy crypto before listing on Binance, here you can use Binance’s “launchpad feature,” where you can participate by just staking Binance coin (BNB) or FDUSD, and once the token gets launched, you will see a free token in your Binance wallet.
Is it good to buy presale crypto?
Participating in crypto presales is one of the best ways to generate massive returns, but it also comes with lots of risk, where you can lose all of your investments if you go with the wrong or illicit crypto project.
What are the benefits of buying presale tokens?
Buying crypto before listing or buying presale tokens has lots of benefits, like you’ll get tokens at a discounted price, getting a free token airdrop, lots of bonuses, and exclusive invitations to events.
Which coin will reach $1 in 2025?
Coins like HBAR and Cardano (ADA) have the potential to reach $1 in 2025.