When the price charts start to show spiky trends, with intraday action leading to massive gains and massive losses, people back off from high-cap cryptos to focus on low-cap assets that could offer them “stable” gains.
However, even when these low-cap assets are picked, the volatility of macroeconomic conditions trickles into them, leading their prices to show even greater spikes.
So, that’s when the third option becomes the best one to choose: crypto ICOs.
These initial coin offerings offer a relatively “risk-free” way to enter the cryptocurrency space. Since the tokens aren’t being traded on live exchanges, people think of them as getting to the ground floor of an amazing investment opportunity, like investing in a seed that will reap better fruits once the tree emerges.
Ethereum had its start that way. Solana brought gains in this manner. But why are these assets treated like the key to success when the market is unpredictable?
While there are many reasons why people gravitate toward ICOs during periods of extreme greed or fear in the market, it is important to articulate them properly so investors have legitimate reasons to invest in the next best crypto presale when it arrives.
All early investment opportunities contain assets priced at less than a fraction of a dollar. These under-$1 cryptos reach consumers when they are still affordable. Once volatility sets in and these tokens go live on exchanges, their prices could skyrocket, leading to massive gains for early movers.
The parabolic increase can be very high, sometimes reaching 100x the initial price, which makes top crypto ICOs a wealth-generating element within the crypto community.
While crypto ICOs aren’t exactly risk-free — even if they have all the right audits and their visions are clear — there is no real risk while the presale is still ongoing. If, upon release, the project does not pan out in the long term, it can still offer gains as a short-term trade, provided the buyers are fast enough to liquidate the presale as soon as the listing day arrives.
Crypto presales offer retail investors a way to get into a project before the marketing hype sets in. Getting ahead of the hype cycle means acquiring a crypto asset before the media pumps its narrative. This leads to inflated gains once the token goes live on an exchange.
If there is a particular utility-focused project with immense upside, investors can buy and hold it for the long term. It helps them survive the bear cycle and potentially capitalize on bullish momentum once it arrives.
Furthermore, long-term holding often translates to staking rewards, which means regular gains for investing in a project that could have strong long-term value.
Crypto presales don’t only involve the simple act of buying tokens before listing. They also offer unique bonus perks — either through referrals or quests — that could help early investors gain a major advantage over tokens already on the market. These perks can increase the asset’s value over time.
With crypto ICOs, users have the opportunity to get in on the ground floor of a project with high potential upside and the benefit of asset diversification. Diversified investment is the key to success when diving into crypto, since the loss of one asset could be offset by gains from another.
This hedging approach against market volatility is something only a crypto presale can provide.
When the market is volatile, price action is predictable. Crypto presale investors, who are insulated from the immediate effects of market conditions, are in a better position to ride price spikes and make massive gains — both in the short and long term.
Through crypto ICOs, retail investors are often better positioned compared to institutional traders. For instance, if a token goes live and then major players move in, early movers are at a massive advantage. The institutional influx leads to large price swings, generating exponential gains for early investors.
As already mentioned, early movers who acquired the crypto at a discount can exit as soon as the token goes live if it doesn’t show any upside and starts to correct. This approach ensures that early investors still have a chance to profit from short-term trades, even when the token’s long-term value fails to materialize.
