A new year is upon us and with it comes new opportunities to invest in cryptocurrency. The industry is always offering new tokens to invest in as well as the tried and tested veteran coins. For investors, this creates a bit of a dilemma. While there is the option of investing in tokens that have existed in the market for years, there is also the temptation of a crypto presale.
Both have their loyal followers who firmly believe that one is better than the other. But in 2024, which should an investor opt for?
Crypto Presales
In the crypto world, a presale is an event that is held for a new token before it is released into the wider market. Most people buy their tokens from crypto exchanges, whether centralised or otherwise. But there is a period before the token is released to these exchanges when investors can buy it. During this time, called a presale, the token is usually sold at a lower price.
To participate in a presale, investors usually need to sign up ahead of time and can usually only buy a certain amount of the token. The idea of participating in a presale is that should the token go on to become popular on crypto exchanges, the value of the initial tokens will go up and presale investors can make more of a profit. At the same time, those who want to invest in the project long-term may also find it more beneficial to enter during the presale period.
2024 will likely see many new projects enter the space thanks to a predicted bull run and it could be a chance for investors to get in early and make a huge profit.
Pros
- Lower prices: The tokens sold during presales are usually listed at a lower price. This means that investors can get on board with the project for cheap.
- Community access: Because presales are restricted to only a certain number of investors, there is the chance to connect with a select group of people who are also passionate about the project.
- Profit-making: Because the tokens are bought cheaper and before they hit the wider market, there is the chance to resell them for a profit later.
Cons
- Lack of security: While there is the chance to make money from presales, there is still the possibility that the token might fail and presale investors will not be able to make their money back.
- Rug pulls: Some presales are attached to scam projects that trick investors, only for the token/project to never be released.
Established Tokens
Established tokens refer to cryptos that have been in the market for years now and have already proven themselves in the market. Unlike with a presale, they can be easily purchased on exchanges and don’t have a complicated process. A major example of an established token would be Bitcoin which has been in the industry for over 10 years. Established tokens can be tempting to invest in because they carry much less risk. At this point, we know that Bitcoin is not a rug pull and that there is a demand for it.
On top of this, established tokens can be beneficial to invest in during periods of major market movements. Take Bitcoin, which has seen positive market movements thanks to the launch of the ETF, the decision taken by the feds regarding interest rates, and much more. It looks like it has nowhere else to go but up and many investors would peg it as the more obvious investment choice.
There are dozens of other tokens like Bitcoin in the industry that fall into this category as well.
Pros
- Less risk: Because these tokens are established, there is less risk of investors being scammed or not being able to turn a profit.
- Easy accessibility: Established cryptos can be bought relatively easily as they are listed on most exchanges and other trading platforms.
Cons
- No early-access benefits: Tokens that have been in the market for a long time will not likely be sold at a discount and its developers will not be offering any of the perks that come with a presale purchase.
Conclusion
2024 is full of investment opportunities for crypto lovers and these include both the newer tokens on the scene offering presales and the cryptos that we’ve known about for years. Any investor looking to make this choice has to consider their level of risk tolerance and what they’re looking to get from their efforts.
If they are willing to take lots of risks then a presale token that may or may not do well in the market might be right for them. On the other hand, a risk-averse investor might fare better opting for an established crypto like Bitcoin.
