How to Buy New Crypto Before Listing (The Ultimate Guide)

cryptocurrencies-basics

Written By: BOSS Editorial

Published: August 6, 2024

Reading Time: 9 minutes

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Once a cryptocurrency is listed on a centralized (CEX) or decentralized exchange, buying it is easy. But how can one get it before listing? How can one get in before the asset’s momentum takes off, potentially earning a return in high multiples?
One obvious way is by being part of the team behind the asset, but it’s unrealistic and time consuming. There must be simpler ways.
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What is Crypto Pre-Listing?

When a cryptocurrency is listed on a DEX, the team needs to put up on that DEX enough of that asset and a corresponding asset from which it can be bought. This is known as a pair. Common cryptos to pair with a new asset include ETH, WETH, USDT, USDC, BUSD, and others. And creating such pairs on an exchange is called providing liquidity.
To sufficiently support good trading volume, the team needs to provide a rather large amount of such liquidity. And if the team is planning to list on multiple exchanges, it can get very expensive to provide such liquidity. This is because, while it has a vast supply of the asset it’s listing, the team does not usually have a large supply of ETH, USDC, or other pairing token. To remedy that, the team will sell some of their total supply of the asset before a listing and accumulate enough pairing assets for the listing.
There are also other important reasons for pre-listing sales. Teams want to reward early investors and supporters by giving them a special lower price for their loyalty and their belief in the project. This is good for the asset too, since strong pre-listing demand could indicate strong interest in the asset and can thus create strong upward momentum for the asset’s price once listed. The question then turns to how to buy new crypto before listing.
Pre-listings usually take the form of a public sale, a private sale, or a seed round. 
A public sale is usually the last pre-listing sale and is a chance for everybody to buy new crypto before listing. Because of that, the per token price in a public sale is usually the highest pre-listing price.
A private sale precedes the public sale, with a lower per token price and access often limited to those on the whitelist, those with a special invite code, or simply those community members who are following the project closely enough to see the opportunity of participating in a private sale.
Lastly, a seed round is usually open for big, early investors who bring not only money but their reputation to the table, much like a VC or even an Angel round in traditional finance. In return for getting the lowest price, these investors usually accept longish lock-up periods to ensure that their interests align with the project’s in the long term.

Why Buy Crypto Before Listing?

Clearly, buying crypto before listing is attractive because of the lower price offered, especially for those who can get into earlier rounds of a private sale. A public listing puts a crypto token on the radar of traders and investors. Even rumors of getting listed on some of the more popular CEXs like KuCoin and Binance can trigger a price spike. The principle is much the same as with rock bands: “I knew them way back before nobody knew them” can be a big advantage in both getting Dave Grohl’s autographed drumsticks from his days in Nirvana and picking up some Ethereum or Solana before each got listed. 
At the very least, picking up some amount of a token expected to explode in value and/or popularity after listing could count as “schmuck insurance” — saving the person from FOMO once the asset’s price goes 10x or even 100x. There are plenty of stories of people turning $60 of SHIB into $100k.  

Key points to Consider Before Investing in Pre-Listed Crypto

Still, even with all the possible advantages of buying a crypto asset before its first listing, it’s worth first considering a number of key points: 

  • In-depth Research: Meticulously research the project’s team, technology, and roadmap. Not all pre-listed cryptocurrencies are created equal, and some may be scams. Even if it doesn’t seem like a scam, how have similar projects fared? Is this one unique enough? Does it solve a real problem or have a strong community behind it? There are many reasons an asset’s price can go parabolic. Do a lot of research and narrow it down to those that fit your trading/investing strategy.
  • High Risk: Pre-listed cryptocurrencies are inherently speculative investments. Be prepared for the possibility of losing your entire investment. While this is also true of all crypto investments, pre-listed assets have not yet been tested by the market, making the risk much higher. Sometimes, even the best projects, teams, and communities do not resonate with the market. Sometimes, the price tanks right after launch, either on its own or driven by short sellers. With big opportunities come big risks.
  • Liquidity Challenges: Selling pre-listed tokens can be difficult due to limited trading volume before exchange listing. That’s why assets are listed on exchanges in the first place. Much like stock options in a company you own, pre-listing tokens are meant to be held until the listing, not bought and sold pre-listing (though some options exist, depending on the asset and markets that trade in it). 

In short, pre-listing tokens provide an early opportunity to get into something that may end up paying off in a big way. But may also implode. Always DYOR and don’t invest more capital than you would be ok losing. Now that you know how to buy new crypto before listing, it’s time to decide which crypto to buy.

How to Find New Crypto Projects Before Listing

Once you’ve considered your risk appetite and are ready to engage with pre-listing assets, it’s helpful to know where to find new crypto projects before listing. There are many sources of what traders call “alpha” — early information with profit potential if acted upon. Here are just a few common ones:

  • Social Media Platforms: Follow prominent crypto influencers and communities to stay updated on upcoming projects. But absolutely make sure to check the influencer’s track record. Don’t just look at their successes but failures too! Anybody can hit it big once. But if 90% of their recommendation didn’t pan out, you may be better off looking elsewhere for your lead. 
  • Cryptocurrency News Websites: Many news outlets cover pre-sales and ICO announcements. Again, check the reputation of the site: do you know the difference between Coindesk and Cointelegraph? The good thing about news sites is that, if an asset is making headlines, it may be a sign that it’s gaining momentum. The bad thing is that it may be a bit late at that point. Influencers tend to know about hot new cryptos before news sites (but not always).
  • Crypto Forums and Discussion Boards: Participate in discussions to discover new projects and gain insights from experienced investors. This is a better source than both news sites and influencers, because these are often earlier stage discussions that can involve people directly working on the project.
  • DEX (Decentralized Exchange) Data Aggregators: Platforms like CoinMarketCap and DappRadar list upcoming pre-sales and ICOs. So that is a good source to see what’s out there and then hone in on the most lucrative ones. See what’s getting the most buzz. Figure out why. 

It’s smart to corroborate information among all of the above sources. Each one gives you a piece of the puzzle. Connect the dots and let the most promising pre-listings float up into your investment radar.

Sniping platforms: A Tool for the Savvy Investor

There is one tool that is so effective in getting new tokens early that it probably should be illegal. But it’s not! Sniping platforms – also known as sniping bots or sniper bots — allow users to select a desired token and the amount they’re willing to spend on it. Then, when the token launches, the bot will “snipe” it in the earliest blocks before humans can get to it. This pretty much guarantees to be among the earliest people to get the new token, which can have a massive advantage if the price then rapidly appreciates once non-bot users start accumulating it. 

  • How to use sniping bots: If a bot is easy to use (like Noti), using it is exactly like described above — a user selects an asset and how much they want to spend on it. The bot will do the rest automatically in a millisecond when conditions have been met (good bots have advanced settings that can be selected for more precise trading conditions). 
  • Sniper Bots features: Features depend on the bot. Some only snipe, others do copy trading as well. Some protect from MEV attacks. Others (e.g. Noti again), actively protect from rug pulls (when the team pulls liquidity, making the token impossible to sell = worthless). So when selecting a bot, make sure to take some time and understand all its features and costs (some charge a % of your trade’s value for each transaction).

The reality of crypto trading is that bots are becoming prevalent enough and easy enough to use that it is now easier to join them than to fight them. An individual can truly optimize trading with sniping platforms.

FAQ:

For those not familiar with buying crypto pre-listing, the above guide may still leave some gaps to be filled. So here is an FAQ with additional information:

  • Q: Is it safe to invest in pre-listed cryptocurrencies?

Every investment carries risk. Same rules apply to pre-listing crypto as to the listed crypto — DYOR, don’t put too much capital into one asset, and be very clear about your available exit strategies.

  • Q: How much should I invest in a pre-listed crypto sale?

That entirely depends on your risk tolerance and appetite for greed. Generally, it’s a good idea not to invest more than 10% of your capital into any single asset.

  • Q: What are some red flags to watch out for in a pre-listed crypto project?

Anonymous team or team members with previous history of scams. Lack of clear vision, roadmap, use case, etc. — if you’re confused about why a crypto project exists, it may be a red flag. Lack of an active community.

Summary

Exchanges come in hierarchies. As crypto assets get listed higher and higher on the pyramid of exchanges, the price often reflects that. More importantly, as projects continue to build their products and create value from them, this success can have a major positive impact on its token price. Just look at Ethereum’s growth from 2016 to 2024 as an example.
Getting in early can thus offer tremendous advantages and profit potential. Some pre-listing opportunities — such as the public sale — are open to all with no special skills or tools needed. Others require being in the know (private sale early rounds) or having special tools (sniper bots). Either way, there are plenty of chances to get in early for those willing to do some research.