Purchasing a cryptocurrency in its earliest stages, before it becomes tradable on exchanges, can be extremely lucrative if that coin gains value over time. But accessing these pre-release cryptocurrencies requires more effort than waiting to buy once they hit exchanges. This guide will explore strategies for buying crypto early.
ICO/IDO Participation
Initial coin offerings (ICOs) and initial DEX offerings (IDOs) represent the earliest fundraising rounds for new cryptocurrencies. Investors can buy the crypto tokens directly from the developers before public trading begins.
- Research upcoming ICOs/IDOs through listing sites like CoinSchedule and ICO Drops. Assess the project validity.
- Register for the ICO/IDO through the project’s website. Most require KYC verification.
- Fund the investment using accepted payment methods like BTC, ETH, USD or EUR.
- Upon ICO/IDO completion, receive the new tokens in the registered wallet.
- Hold the tokens until exchange listing or utilize for platform access.
ICOs/IDOs offer large discounts compared to eventual exchange prices. However, many projects fail to deliver returns despite raising millions. Thorough due diligence is vital.
Airdrops
Crypto developers often airdrop free token allotments to community members for marketing and engagement.
- Follow crypto thought leaders, developers and influencers on social media to hear about upcoming airdrops.
- Register interest in the airdrop through the company’s channels. Email and Telegram are common.
- Provide a valid wallet address to receive the token distribution. Double check for scams.
- Wait for the airdrop, then hold or trade the tokens. Listing the asset may increase its value.
While risky, airdrops offer users the chance to gain exposure to new crypto projects for free. The token amounts are usually small but have profit potential.
Crypto Faucets
Cryptocurrency faucets distribute satoshis or small coin amounts to users at regular intervals.
- Locate faucets issuing new crypto tokens by browsing sites like CoinMarketCap.
- Complete any required sign-up steps and input a receiving wallet address.
- Check faucet frequently to claim available token rewards. Amounts are tiny but add up.
- Once enough tokens accumulate, hold or trade them as desired.
Faucets provide a simple way to indirectly buy into emerging cryptos over time. The money gained can be reinvested into larger holdings.
Mining and Staking
Validating transactions for proof-of-work and proof-of-stake blockchains yields rewards in the native cryptocurrency.
- Research which new networks offer mining or staking capabilities.
- Obtain the required equipment or tokens to contribute compute power.
- Configure systems to start mining or staking the cryptocurrency.
- Accumulate the mined/staked crypto rewards until exchange listing.
While competitive, mining and staking new cryptos can accrue substantial holdings before broader availability. Just ensure security and proper setup.
Private Sales
Wealthy investors and institutions can sometimes access private token sales before the public.
- Network with crypto project leaders and developers to gain private sale access.
- Negotiate purchase terms like valuation caps and vesting schedules.
- Complete legal contracts and transfer investment capital privately.
- Receive token allotment in wallet once the private sale finishes.
Private sales come with high minimums but offer the earliest possible entry. Extensive connections within the industry are necessary.
Over-the-Counter (OTC) Desks
OTC crypto brokers fill large orders off-exchange from inventory. Some OTC desks source pre-release tokens.
- Contact established OTC desks to inquire about new crypto availability.
- Verify the legitimacy of any offerings, as scams are common.
- Negotiate OTC purchase terms privately based on desired order size.
- Settle the trade through accepted payment methods. Receive tokens in wallet.
Purchasing through OTC desks is complex but opens access to tokens not yet openly traded. Regulation varies.
Conclusion
Obtaining emerging cryptocurrencies before exchange listings requires dedication and research but can produce major investment returns. ICOs/IDOs, airdrops, faucets, mining and private OTC trades offer ways to gain early exposure, balanced with substantial risk. Rigorous due diligence is a must when investing in new assets. But backing the right crypto project early on could prove tremendously profitable over time.