“I should’ve purchased Bitcoin back when it was cheap” is a regret that many crypto investors are all too familiar with. While the Bitcoin train has left the station a long time ago, you still have the opportunity to invest early in new up-and-coming cryptocurrency projects.
All you have to do is buy a promising crypto asset before it starts trading publicly on crypto exchanges.
This strategy can offer very high returns if the altcoin you bought is a success after launch. Though this also comes with the potential risk of losing your money to scams, rug pulls, and dead-on-arrival projects.
With that said, here’s all you need to know about buying crypto assets before their listing.
Where to find new crypto before listing:
The first step of investing in cryptocurrencies before their listing is actually finding the right ones. Here are a few strategies we’ve used in the past to successfully locate promising crypto projects:
Crypto Launchpads
Crypto launchpads are platforms that allow crypto projects to raise revenue from retail investors. You can think of them as the “Kickstarter” of the crypto world where individuals can fund a permission project. In most cases, contributors receive early access to the cryptocurrency behind the project through initial DEX offerings (IDOs) — allowing them to become early investors.
Some of the most popular crypto launchpads include:
Participating in crypto launchpad investment can offer high returns, but it also comes with inherent risks. For example, you can lose your entire investment if the project fails to deliver on its promises.
Data Aggregators
Data aggregators collect and analyze large amounts of data from various sources to provide insights into market trends, prices, and trading volumes. These aggregators also collect data about upcoming projects and crypto investing opportunities before they’re listed on any mainstream exchanges.
You can scan these aggregators for the latest info on things like pre-sale events to spot new crypto investment opportunities.
Aggregators we personally use on a regular basis include:
Telegram Pre-sale Groups
Telegram pre-sale groups are also starting to become a popular way for crypto investors to discover new coins before they are listed on popular exchanges. If you’re in the right Telegram community, you’ll often get news about an upcoming project before it hits the wider web. This’ll give you the opportunity to invest in the coin early in its development.
But, joining these groups also carries the risk of you getting caught up in fraudulent projects that go silent after the initial round of investment is complete. So, make sure to carefully research and evaluate any project before investing your money in them.
Twitter and Social Channels
Modern-day social media platforms are an inherent part of crypto marketing. Projects & influencers often use these platforms to share information about upcoming pre-sales or IDOs. So, keeping an eye out for crypto-related discussions on social apps can be a good way to discover new investment opportunities.
However, do thorough research before investing in any project promoted on social media. We cannot stress enough how important it is for you to scrutinize the legitimacy of a project and carefully assess its potential.
Keep a critical outlook no matter which entity or influencer is promoting it. We’ve seen so many examples of massive influencers with millions of followers promoting blatant pump & dump scams over the years.
ICO/IDO Calendars
ICO/IDO calendars compile information about upcoming pre-sales or IDOs in one place. You can then use these calendars to plan your investment strategies ahead of time. They can also help you stay updated on the latest market trends and track important dates — like the final date for an ongoing IDO.
Some ICO/IDO calendars also allow their users to filter results based on factors like investment size, project type, and launch date. Plus, you can also find detailed information about upcoming projects such as their team members, project goals, and funding targets.
In our experience, these are some of the most reliable ICO/IDO calendars on the market:
Crypto News Sites
As their name suggests, crypto news sites are online outlets dedicated to all things crypto. They cover everything from market trends to regulatory developments.
Whenever a new promising project is on the horizon, these news sites publish information about upcoming pre-sales or IDOs. You can take advantage of this coverage by visiting these sites on a regular basis and scanning their content for new investment opportunities.
Some of the most popular crypto news outlets we recommend include CoinDesk, CoinTelegraph, and CryptoSlate.
Crypto Conferences/Events
Crypto conferences and events give a platform for upcoming projects to showcase their crypto-based products and services. Attending these events can help you learn about upcoming projects and even get early access to pre-sales. Plus, you can also get the opportunity to connect with like-minded individuals who share similar interests in crypto.
Some notable names in crypto conferences include Consensus, Devcon, and Blockchain Week. These events are also popular among crypto enthusiasts and industry leaders alike. So, attending them can give you a deeper understanding of how the crypto market works.
Why Invest in New Cryptocurrencies Before Listing
The simplest answer to this question is that it can result in massive profits and a return on your investment. This is because new crypto assets are usually sold for a fixed price before they’re listed on exchanges leaving a lot of room for growth.
For example, let’s say you bought 100 new tokens of a promising crypto project for $100 during its pre-sale event. Now, if the demand for this coin increases after listing, its price will go up as well. So, if the price of one token reaches $5, you can sell your 100 coins and make an easy profit of $400.
Of course, this example is of an ideal situation where everything goes to plan. Keep in mind that there’s always a risk of failure for most new projects after listing.
Early Access to Promising Projects and Innovative Technologies
The other major reason why you’d want to invest in upcoming projects would be to become an early adopter of innovative technologies. You can also invest in cool projects to help them deliver on the vision — again — like Kickstarter.
Researching New Cryptocurrencies
We’ve said this before, and we’ll say it again; do your research before investing your money in a project. Even the most basic investigation can help you assess the credibility, potential market demand, and viability of the project. This will also protect your investment from many potential scams and rug pulls.
Here are a few techniques we use to ensure that we’re investing in the right upcoming coin:
Project's Website
The project's website is a great place to start your research. Consider factors that determine its legitimacy. Ask questions like: How polished does the website look? What is the “About Us” page? Is the written content on the site professional enough for an actual business?
Team Background
Investigating the team members' backgrounds can give you a good idea of their experience and expertise. A team with crypto industry veterans has a higher chance of succeeding than a team without any notable names.
Whitepaper
Whitepaper is the detailed document that outlines the project's technical specifications, goals, and potential use cases. Read it thoroughly and ensure that the project's current trajectory matches these goals.
Community Engagement & Social media
High community engagement can often lead to success. If a project has an active engagement on social media and forums, it is more likely to have a strong following after launch as well.
Managing Risks
We cannot overstate the risk of investing early in crypto projects. Some factors that can sink your investment include:
But, don’t lose hope yet. Here are a few methods we use to ensure the safety of our investments:
Investment Diversity
Do not put all of your eggs in one basket. Invest in several new projects to lower your risk.
Realistic Expectations
Do not expect Bitcoin-levels of profits from new tokens. Set realistic expectations and invest accordingly.
Professional Advice
If you’re ever unsure about the legitimacy or potential of a project, consult a professional financial advisor and follow their advice.
Conclusion
Investing in cryptocurrencies before they’re listed on public exchanges can be a good opportunity for huge returns. But if you’re not careful, this investment can all go to waste in no time.
If you’re still interested in funding upcoming projects, make sure to do thorough research and practice caution. Even if the project is backed by famous influencers or well-known industry veterans, do your due diligence before parting ways with your hard-earned money.