Navigating DeFi Presales: A Beginner's Guide to Token Investment Strategies

A DeFi presale is when digital tokens are sold to a limited number of participants before the official ICO or market launch. During this process, tokens are typically discounted, allowing investors to profit significantly with minimal investment. For DeFi projects, this is a crucial tool to raise initial capital, which can be used to complete startup development and launch marketing campaigns, generating further interest in the token post-launch.

DeFi, or decentralized finance, differs from centralized financial systems (CeFi) by operating without external influence and intermediaries for financial transactions. It utilizes smart contracts to automate and secure transactions using blockchain technology. As a result, DeFi ensures holder anonymity and eliminates the need to trust centralized organizations.

In summary, a DeFi presale is a vital stage in the cryptocurrency or token lifecycle, enabling investors and projects to benefit and prepare for a successful entry into the decentralized finance market.

HOW DOES IT WORK?

The DeFi presale process follows a precise algorithm for a successful token launch:

1. ANNOUNCEMENT OF PRESALE: The team developing the new token typically announces the start of the presale through specialized platforms. This allows investors to learn about the project and prepare to participate.

2. SELECTION AND INVESTMENT: Investors review the offerings and choose the most promising ones. At this stage, tokens are often bought at discounted prices, making the presale attractive for early participants. It also provides initial capital for the project team to develop further.

3. PROJECT DEVELOPMENT The funds raised enable developers to complete their projects and enhance their products. This stage also gives the team valuable experience interacting with the market, addressing flaws, and increasing the token's appeal before the main ICO.

The presale supports the project financially and allows the team to correct errors in marketing strategy or technical aspects. As a result, the token price often rises before the primary sale wave, attracting new investors and ensuring high returns for early participants.

HOW TO FIND UPCOMING DEFI PRESALES?

There are several methods for determining the start of a DeFi presale. Developer teams typically announce the beginning of the process on specialized platforms and channels. These announcements play a crucial role in attracting the attention of potential investors and project participants. They include information about participation terms, token bonuses, and the presale end date.

Additionally, numerous launchpads (presale platforms) are available on specialized websites. Investors can browse current offerings and register on Launchpad platforms to receive notifications about upcoming presales. Let's delve deeper into how this happens.

WHERE TO LOOK?

Project creators often independently announce upcoming coin sales through their profiles on social networks and specialized platforms such as CoinMarketCap, Coinscope, Coingecko, and other online resources. These announcements play an important role in informing potential investors about the opportunity to participate in presales.

Users can find comprehensive lists of coins offered in presales and detailed information on prices, participation terms, and other essential details necessary for making informed investment decisions on such platforms.

Additionally, blogs and investment expert opinions often serve as valuable sources of information regarding the opportunity to acquire coins before their official market release. Investors can receive recommendations from influential figures and analysts regarding promising projects and presale conditions.

For successful monitoring and participation in DeFi presales, it's crucial to continually track news and updates in popular groups and channels within the Web3 community. For instance, actively engaging in discussions on specialized Reddit subreddits, subscribing to Launchpad Telegram channels, and following the Twitter accounts of key players can help stay updated on the latest events and trends. This approach also enables timely responses to presale opportunities and informed investment decisions.

IS IT PROFITABLE TO INVEST IN THE PRESALE STAGE?

During the cryptocurrency presale stage, high profits are possible, especially for developers and early investors. Tokens are sold at reduced prices because the project is still under development, similar to buying a new apartment off-plan. Early buyers who wait until construction is complete get the best price per square meter. Similarly, presale investors can buy tokens before officially launching on the market at a more favorable price.

However, like any high-yield project, DeFi presales come with certain risks. It's essential to consider both sides of the coin:

1. Potential high returns: If the project succeeds, investing during the presale stage can yield significant profits. When tokens hit the market, their value can rise substantially, which is attractive for early investors.

2. Risks and uncertainties: Projects at the presale stage often need full readiness and may face technical, marketing, or legal issues. Investors should be prepared for potential development delays or changes in presale terms.

To minimize risks and make informed decisions, it's crucial to actively monitor project news, study the development team, and seek expert and community advice. This helps investors assess the project's potential and make informed decisions about investing during the presale stage.

ADVANTAGES

Coin presales allow investors to increase their investments by 10 times or more compared to the initial amount. At the same time, the minimum investment amounts are significantly lower than during an ICO.

Moreover, coin presales offer even more advantages:

RISKS

Investing in new tokens through DeFi presales involves balancing risks and potential benefits:

WELL-KNOWN AND SUCCESSFUL DEFI PRESALES

In 2024, several key projects stand out in the world of DeFi that deserve attention:

These projects play a crucial role in changing traditional approaches to investment and financing. They distinguish themselves by their proven reliability, community-managed protocols, and the formation of liquid pools. However, when deciding to invest in DeFi, it's important to remember the associated risks and make informed project choices.

PRESALE VS. ICO: WHAT'S THE DIFFERENCE?

ICO (Initial Coin Offering) is an official token sale process in which the tokens already have some liquidity. In contrast, DeFi presales do not guarantee project success. Their success depends on effective marketing, social media attention, and the quality of the startup being funded.

During the presale stage, investors can buy coins at a low price. After entering the market, the value of the tokens increases, and potential profit decreases.

Thus, ICOs provide higher token liquidity and lower risks but may not yield as high returns. On the other hand, DeFi presales offer investors a chance to earn significantly more if the project succeeds, requiring minimal initial investment.

The choice between ICOs and presales depends on each investor's goals and risk tolerance.

CONCLUSION

A DeFi presale is an excellent opportunity to make money. However, the success of this investment depends on your analytical skills combined with a bit of luck. Before you invest in a project, please find out who is behind it. It would help if you were confident that experienced people who have proven themselves in other successful projects are working on the product. Additionally, only invest an amount you can afford to lose. Unfortunately, certain risks exist, and even the most promising projects can fail.

FREQUENTLY ASKED QUESTIONS

What is DeFi presale? A DeFi presale is the sale of tokens before their main release on decentralized markets.

How to find upcoming DeFi presales? Projects available for investment are advertised on specialized websites. Influencers, experts, and project creators also share Information about them on official social media pages and websites. Any information should be carefully checked before making financial decisions.

What is the difference between a DeFi presale and an ICO?

A presale means buying a token before it is fully ready or before the startup can release the final product for which it is raising money. An ICO allows you to buy tokens that already have some liquidity.

What is liquidity? In general economic terms, it is the ability of an asset to be quickly exchanged for cash without significant price changes. The crypto segment refers to the supply of available digital currencies on a CEX exchange or within a protocol.

Is it safe to use decentralized finance?

DeFi protocols are programs that handle large amounts of cryptocurrency. This makes them targets for cybercriminals. If a vulnerability is found in the protocol, deposits can be lost without any chance of recovery. The most significant theft was $80 million from the Qubit protocol, which was attacked using the QBridge deposit feature. Other blockchain project hacks resulted in hackers gaining approximately $57 million more, including IRA Financial Trust, which allows users to manage retirement accounts independently, which lost $36 million.