The crypto market is also known for its volatility. So how do you build a balanced portfolio that allows you to benefit from the growth potential while minimizing risks? One strategy is to invest in token presales of promising projects. A token presale also called an Initial DEX Offering (IDO), allows investors to buy tokens of a new cryptocurrency project before it officially launches and gets listed on exchanges. During presales, tokens are offered at huge discounts compared to the potential future price when trading begins. Investing in presales gives you exposure to new and emerging projects early on.
Benefits of investing in presales
There are several advantages of participating in crypto token presales:
- Massive discounts – As mentioned earlier, tokens are offered at discounts during presales which could be 30-90% cheaper than the listing price. This gives investors a chance to gain higher returns.
- Early access – You get early exposure to potentially game-changing and innovative blockchain projects even before others in the market. Being an early investor allows you to understand and support the project‘s growth right from the start.
- Higher allocation – Most presales have individual caps on investments to prevent whales from taking up all token supply. Retik Finance’s presale stages this ensures higher allocation for retail investors like you and me.
- Community rewards – Many projects offer additional tokens or NFTs to early backers as a community reward once the token gets launched.
Assessing presale opportunities
While presales provide attractive opportunities, it is vital to assess each opportunity thoroughly before investing:
- Research the startup team behind the project – Do they have relevant experience in blockchain technology and business management? Do they have developers and advisors with proven track records?
- Evaluate the problem they are trying to solve – Does the project provide real-world utility and solve a major industry challenge? For instance, decentralized storage projects address cloud storage limitations.
- Check the legitimacy of partnerships and backers – If big venture capital firms or companies have invested in the project, it indicates there is long-term value.
- Assess tokenomics – Are token supply and distribution fair for investors? Make sure there are lock-up periods for team tokens.
- Review technical documents – Check the project‟s technical whitepaper. If launching on platforms like Polkadot and Kusama, assess their canary network results.
Diversification across market segments
As crypto presales allow early participation in new projects, they provide an avenue to diversify across various crypto market segments:
- Blockchain platforms like Aptos and Acala that enable the deployment of dApps
- Metaverse and NFT platforms like Unique Network provide infrastructure
- DeFi protocols focused on lending, trading, insurance, etc.
- Scalability solutions like Starknet using ZK rollups
- Infrastructure providers like API3 bring real-world data on-chain
- Interoperability projects allowing cross-chain data/asset transfers
Diversifying across these segments balances your portfolio by reducing the correlation between assets.
