Cryptocurrency projects are applying for ICOs to raise funds. So, what does pre-sale mean and why is it important? Simply put, an ICO is when projects offer their own tokens to investors at a specific price and for a limited time. This mechanism is actually a well-known pre-sale method in the traditional world as well.

The reason projects hold ICOs is clear. They need initial capital to achieve their goals. By offering their coins at pre-sale prices, they raise the necessary funds and also generate early buzz about the project. After a successful ICO, a significant advertising impact occurs in the market, increasing interest in the project.

Of course, every ICO participant wants to make a profit. The answer to what pre-sale means is actually this: early investors can make substantial profits if the token price increases when it hits the exchange. But on the other hand, after entering the exchange, the price can fall below the ICO price, and in this case, you could incur losses. It’s essential to thoroughly research the project you are investing in.

Today, we must say that the situation is somewhat different. Due to market uncertainty and falling prices, interest in ICOs has decreased. Most ICOs we see are trading at 2x, 5x, or even 10x below their ICO price once they hit the exchange. Therefore, smart investors prefer to buy tokens on the exchange at lower prices when the price drops, rather than buying directly from the ICO.

At this point, a sincere piece of advice: instead of participating in ICOs, closely follow the projects you like and buy them at much more affordable prices once they are listed on the exchange. If you truly believe in a project, you can buy a very small amount of pre-sale tokens. But no one’s advice or market FOMO should force you to make decisions. Do your own research, draw your own conclusions, and act accordingly. The investment decision should be entirely yours.