How to Participate in an ICO Presale

An Initial Coin Offerings presale is a great way for investors to obtain tokens before everyone else, at a reduced cost, as well as a number of other perks.

In other words, presales are commonly only opened to the strategic investors, the early supporters and the wealthy individuals who then pour in significant amount of capital to the project.

Follow this guide for details on how to partake in an ICO pre sale, and the steps you must take to secure your share of the tokens.

Research the Project

Make sure you do your due diligence on the project, team, tech, tokenomics and roadmap before ever touching an ICO presale.

Check the projects whitepaper, website, and their presence on social media and community engagement, in order to evaluate the credibility, feasibility, and chance of success for the project.

Read the project communication with a grain of salt and see that the communication is transparent, clear, and professional, and that it follow your investment objectives and the amount of risk you are able to handle.

Join Whitelists and Waitlists

ICO Pre-Sales are when they require you to sign up for a whitelist or waitlist to participate. Whitelists: Lists that require users to qualify, and often include requirements like KYC verifications, accreditations, or holding a specified limit of tokens.

Waitlists Waitlists are a best effort tool to help with managing demand and granting presales on a first-come, first-serve basis. When it comes to ICO presale, you just have to register to the whitelist or waitlist of a project via its website or official channels, then follow the instructions that are given.

Complete KYC/AML Verification

Most ICO presales require  AML (Anti-Money Laundering) and KYC (Know Your Customer) verification.

These include a KYC (know your customer) process where you are required to submit your personal details such as your full name, address, date of birth along with documents that prove your identity.

Observe KYC/AML verification by way of steps launched by the mission, publish required docs, and look forward to approval as to take part in presale.

Allocate Funds

After successfully applying to the ICO presale, receive permission to buy tokens (whitelisted), or to obtain a slot in the presale, collect the amount of money you want to invest.

First, decide how much you want to invest in the presale - in accordance with your risk appetite, investment goals, and the terms of the project's token supply.

Have a signification amount of money in your cryptocurrency wallet or exchange account in order to proceed with the investment once the presale opens.

Participate in the Presale

Just make sure not to miss out when the ICO preorder begins by doing what the project instruct and secure your share of the token.

Usually this means sending your contribution using cryptocurrency (like Bitcoin or Ethereum) to the address of the wallet that the project provides before the deadline.

Make sure you paste the right wallet address, and provide the necessary transaction data like an ID or memo to help your contribution to be processed.

Confirm Receipt of Tokens

Keep an eye on your cryptocurrency wallet or exchange account after you have taken part in the ICO presale as soon as the tokens arrive.

Upon completion of the presale you will receive your tokens either right away or at a later time according to the projects token distribution schedule.

You need to confirm if you have received tokens and to check with the transaction information such as the numbers of the tokens and any discounts or benefits.

Secure Your Tokens

When you have received your tokens from the ICO presale, also be sure to secure them properly. Send the tokens to a safe wallet of your choice like a hardware wallet or a cold storage software wallet. 

Secure your tokens from burglary, hacking or any illegal access by: Do Use two-factor authentication (2FA) and follow safety suggestions for wallets.

Conclusion

An ICO presale is when a company sells its coins before the actual, official ICO time, and participants get early access to the tokens at a discount, but also need to be really careful and do the full research. Do your own research, pass KYC and AML verification, and manage the funds wisely.

Follow the steps at the project to get your token. Because ICOs are speculative and risky, punt only as much as you can afford to lose.