Being a cryptocurrency investor can be quite challenging considering the volatile market. Still returns can be considerable with enough research and risk management because people can invest in promising projects for the long term without exposing themselves to massive price spikes.
There are many more aspects to consider when investing in cryptocurrencies. One of the most important is timing so anyone learning to buy Bitcoin or Ethereum must leverage it by doing it at the perfect time or rate to benefit from high yields.
The best method of investing is to buy consistently large amounts of cryptocurrencies so that market volatility can be endured. The strategy is best achieved with renowned coins like Bitcoin or Ethereum but there’s more to it. Investors who like to venture into the market and research new projects can buy cryptocurrencies before developers list them on famous exchanges which is more profitable. Here’s everything you should know about the process.
Crypto presales and ICOs
Crypto presales allow investors to buy cryptocurrencies directly from the developer boost the project’s interest and raise funds before the team releases them to the public. Usually to participate in a presale the developer teams set an eligibility criterion for those interested by addressing a minimum investment amount or geographic location requirements.
Participating in a crypto presale offers considerable returns as investors buy the coin at a lower price which can boost the project if it is successful. For example, the Doge meme coin had massive potential to generate money and it did once Elon Musk got his eyes on it.
Users must be wary of risks. The possibility of the project flopping is significant as there’s no reassurance that the crypto audience will find the asset valuable in any way. At the same time presales are sometimes created by scammers who build a seemingly legitimate coin and then take all the money invested from users after it receives media attention.
Initial Coin Offerings (ICOs) are somewhat similar only that they’re part of a crowdfunding campaign to support the project during its early development stages. Investors must be as careful with ICOs as with presales before investing in a crypto project.
Researching new crypto projects
One of the best things about the crypto market is the massive and supportive communities. The only thing you must do is search for groups of investors who are as interested in presales as you are. You can usually find them on social media platforms especially Reddit or Telegram where you can easily connect with experienced investors. Crypto forums are also helpful if you want to expand your research area as they provide special sections for ICO announcements.
Crypto news sites also ensure a reliable source of knowledge for such projects as they contain valuable info about upcoming projects collaborations between renowned developers and updates on crypto technologies. It would also help to look into developers project websites because they might give signs of future goals and projects to help you create a line of reliable developer teams.
Establishing whether a project is profitable or not
While many crypto projects look promising you must adequately research various factors before deciding to invest. One of the most important things to check is the team behind the project as their background and experience can help you determine if they’re trustworthy and creative enough to create something valuable.
In order for the project to be useful it’s also important for it to serve a specific solution to a real-world problem. The technology behind it can significantly improve the crypto industry but that’s not necessarily important for short-term investors as gain can also be obtained from cryptocurrencies like Shiba Inu and Pepe meme coins that ensure great returns during the altcoin season.
The community around the project is an excellent factor to consider in determining its potential. The best example of this comment is the case of one of the most expensive NFTs in the world called “Everydays: the First 5000 Days” which an investor bought for $69.3 million. The artist became so famous due to having the patience to build an audience who supported his art for about 14 years online so it’s proof that a community can increase the chances of a crypto project’s success.
Airdrop hunting as an alternative
Another way of acquiring cryptocurrencies is airdrop hunting in which developers distribute free tokens for those who are eligible based on their requirements. This can also be done randomly to attract attention. This can happen during the launching phase or through a promotional campaign but users don’t have to contribute to the airdrop financially. Developers may ask those interested to join specific groups or follow them on social media to spread awareness about the projects arrival.
There are multiple benefits of participating in a crypto airdrop such as the following:
- Tokens are free, so they’re especially beneficial for beginners;
- Participants get early access to the project;
- Investors can learn new things about crypto;
- People reach a specialized community to engage with;
- There is potential for profit;
- Tokens might provide considerable utility;
Safely investing in crypto
Whether you’re into presales or regular investments it’s best to always mind the safety of your wallet by choosing a suitable one. Cold wallets are usually the best as they’re not connected to the internet so you’re not as exposed to scams. It’s also essential to enable multi-factor authentication on all your devices and keep software updated. Make sure to learn how to avoid phishing scams because they’re prominent in the crypto market.
Final considerations
Being early to the party is always a good idea especially if you’re a crypto investor and want to maximize your profits by participating in presales, ICOs, and token airdrops. These events allow you to get your hands on the latest crypto projects with significant profit potential and engage with a supportive community where you can learn more about these projects and become an expert in being the first investor of a cryptocurrency.
