A cryptocurrency sale or token sale is a fundraising event where the creator company/team sells its tokens intending to raise money to develop its product. Cryptocurrencies are by far the easiest way for startups to raise funds for their new projects for digital currencies are more liquid than traditional assets and can have many benefits for both investors and users.

Pre sale, private sale, public sale, etc. are some of the stages of a token sale. Different stages of a token sale will have different rules with possibly different prices of the token and different offers for buyers. This is where investors and buyers can ensure maximum benefits. Here’s how buying crypto in a presale is generally more beneficial than buying in a public sale.

What is a presale?

A presale is usually the first or second phase in a cryptocurrency token sale. This is generally followed by the public sale.

In a presale, the creator will issue tokens for a limited number of people and sell them on a first come first serve basis. The buyers have special advantages of purchasing tokens during the presale. For instance, they will probably get the token at a lower price as compared to the public sale.

Why purchase tokens in a presale instead of a public sale

In a token sale, the issuer will generally increase the token price with each stage. So, the very first stage will have the lowest token price, which will be increased in the second stage, and so on. That means the early buyers will automatically be at advantage. And when you can manage to buy tokens at a low price, your returns will automatically increase when you sell during or after the public sale.

Let’s understand this with the example of PurpleX.

Purplex token sale will be held in multiple phases. In the presale, the token will be issued at a discount price than the expected launch price (listing price).

Large buyers will get more benefits for they can buy more tokens at a discount price and can get more value for their investment. The price of pre-sale tokens will almost certainly increase at the time of official launch and listing, so you can make significant profits even if you sell immediately after the launch.

Another benefit of investing in a token presale is offers and rewards that are exclusive only to presale investors. For example, some crypto ICOs offer free tokens as a bonus to every buyer on their purchased token value. So, if an ICO is offering a 10% bonus, you’ll receive 110 tokens while paying only for 100 tokens. Those 10 extra tokens are practically free for you and will add to your profits.

If possible, one should try to buy tokens in the very first sale to get the lowest price. However, it is not always possible to get your hands on a token in the very first sale, especially for popular cryptocurrencies with a high demand. Also, if you are a beginner, we advise you to do your research before investing in a new token and wait for the market response before you go all in.