​​What You Need to Know Before Joining Your First Presale

As a beginner in the crypto space, you might feel intimidated to take that first step. But joining a presale is exactly how you get access to early opportunities in Web3; the kind where the rewards can be bigger. 

In this quick guide, we’ll walk you through the elemental steps you need to take to guarantee both your safety and your rewards as you start exploring the world of token presales.

What Is A Token Presale?

A token presale is when you get access to tokens before they are listed on official exchanges; either decentralized or centralized. By joining early, you are supporting a project in its early stage, where founders require funding to fulfill their startup goals.

How Does A Presale Work?

A presale is when project founders decide to raise funds by exchanging tokens that represent the value of their project.

They can do this in different ways:

• ICO (Initial Coin Offering): The project runs the sale directly on its website, managing marketing and communication.
• IDO (Initial DEX Offering): The sale runs on a decentralized exchange, with everything executed through smart contracts. (We have a blog comparing ICOs and IDOs, check it out.)
• IEO (Initial Exchange Offering): The presale is hosted by a centralized exchange.
• Crypto Launchpads: Dedicated platforms designed to launch projects, like a Web3 version of a business incubator.

At CoinTerminal, we are an IDO launchpad; a platform designed to launch projects efficiently and securely through smart contracts. We’ve removed all barriers to access: no token gating, no staking, refundable sales, and even automatic rewards. With a contribution of $250, you’re automatically entered into our $5K monthly lottery, even if you later request a refund. [Check our active sales here.]

Why Do Crypto Projects Offer Token Presales?

Simply put, startups need funding. Presales are the way they raise the resources to move from idea to product. They are a key stage of any Web3 project’s development cycle.

What Happens After The Token Presale Ends?

After the presale ends and tokens are distributed, the project typically lists on a centralized or decentralized exchange. How tokens are released depends on tokenomics;  usually through vesting schedules that control supply and prevent pump-and-dump schemes.

We also have a blog comparing ICOs and IDO launchpads, and why IDOs are often safer for investors since everything is automated through smart contracts.

What Are The Benefits Of Joining A Token Presale?

By joining a presale, you get to:

• Discover the project from the very beginning, before hype drives prices up.
• Understand the project’s audience and potential for sustainability.
• Get tokens at an earlier (often cheaper) price.

But remember, always do your own research before investing.

How Do You Find Legitimate Token Presale Opportunities?

It depends on what type of presale you’re looking for:

• ICOs: Websites like ICO Drops list upcoming offerings.
• Launchpads: Tools like CryptoRank let you explore trusted launchpads. (We also have a blog on how to spot a legitimate launchpad.)
• Social media and KOLs: Following reliable key opinion leaders helps you stay updated.
• Data aggregators: Platforms that track presales and token launches.

Tips For First-Time Token Presale Investors

• Safety first: Use a privacy-conscious browser like Brave or DuckDuckGo. For email, consider ProtonMail instead of Gmail.
• Keep passwords secure: Write them down and store them safely.
• Set up a wallet: Multi-chain wallets like TrustWallet or MetaMask are beginner-friendly and widely used.
• Start small and learn: Browse projects, practice, and enjoy the process of seeing how blockchain is shaping the future.

Final Thoughts

Joining your first presale can feel intimidating at first, but it quickly becomes exciting and rewarding. Each presale is a chance to support innovation in Web3 while learning how this ecosystem works.

Be sure to check our other blogs for more tips and tricks to become savvy in crypto. And if you’re curious about what’s live now, [check our active sales at CoinTerminal].