How to Buy Unlisted Cryptocurrency? (Beginner’s Guide)

As crypto investors, we’re always looking for ways to invest early in good projects. One way to do this is by buying tokens before they’re listed on major exchanges using Pre-Market Trading.

Pre-Market Trading allows you to buy tokens before they officially launch on exchanges. This gives you the chance to secure them at lower prices, with the potential for significant gains if the project does well after listing.

How Pre-Market Trading Works?

Pre-Market trading is a way to buy and sell tokens before they are officially listed on an exchange. It involves agreements between buyers and sellers who trade directly with each other.

Sellers in Pre-Market trading are often early holders of a token, like project developers or private investors, who want to sell some of their tokens before the official launch. Buyers are typically investors looking to get in early on a token they believe has potential.

Buyers and sellers negotiate the price of the tokens. A buyer agrees to pay the seller’s asking price or proposes a price they are willing to pay. Once both sides agree, the trade is confirmed.

When a buyer purchases tokens through Pre-Market trading, they don’t receive the tokens immediately. Instead, they get them once the token is officially listed on the exchange. Sellers deliver the tokens as per the agreement.

This system gives buyers early access to tokens, often at a negotiated price. For sellers, it offers liquidity before the token’s launch, allowing them to monetize their holdings in advance. Both parties benefit from Pre-Market trading: buyers secure tokens early, and sellers get the funds they need before the public listing.

What Do You Need to buy Unlisted Cryptocurrencies?

To buy unlisted coins, you first need an account on an exchange that offers Pre-Market Trading, such as KuCoin, Bitget, or Bybit. These platforms allow you to access tokens before they are officially listed, providing early investment opportunities.

Next, you’ll need to complete the KYC (Know Your Customer) verification process. This typically involves providing personal information and a valid photo ID to confirm your identity. It’s an essential step to ensure a secure trading experience.

Once verified, you can deposit funds into your account. This can be done by transferring cryptocurrencies or depositing fiat money using various methods such as bank transfers, credit/debit cards, or other payment options available on the exchange.

In my experience, KuCoin is one of the best platforms for buying coins before they get listed. One of its key advantages is how quickly it lists new tokens compared to larger exchanges like Binance and Coinbase. This gives investors an early entry point to promising projects, often before they gain mainstream attention.

I frequently use KuCoin’s Pre-Market Trading feature to purchase tokens ahead of their official listing on the platform. If the project behind the token succeeds, its value often increases significantly after being listed, providing a strong potential for returns.

The real potential, however, lies in holding the token until it gets listed on a major exchange. Bigger platforms attract more traders, which can lead to a significant rise in the token’s value as demand increases. If you’re looking to start, you can create an account using the link below and get an extra 10% discount on all trading fees.

How to Buy Unlisted Crypto in Pre-Market on KuCoin?

1. Go to the Pre-Market Page:

Go to https://www.kucoin.com/pre-market/ to find the tokens available for trading. You’ll see a list of tokens with details such as trading duration, pledge rate, settlement time, and fee rate.

• Trading Duration: This indicates the time period during which the token is available for Pre-Market Trading. For example, “10/25/2024 08:00 – 11/22/2024 13:00 (UTC)” means you can trade the token during these dates and times.
• Settlement Time: This is when the tokens will be officially settled and delivered to your account, e.g., “11/22/2024 17:00 (UTC).”
• Pledge Rate: This is the percentage of the order value you need to lock in as collateral. A 100% pledge rate means you must commit the full value of your order.
• Fee Rate: The fee for Pre-Market Trading is 2.5%, which is the cost to execute your trade during the pre-listing phase.

2. Choose a Token:

Browse through the available tokens and select the one you’d like to buy. Be sure to research the project behind the token and understand the risks involved.

3. Place Your Order:

To place an order, click Buy on the token you’ve selected. Before proceeding, transfer the USDT you deposited into your Funding Account to your Trading Account, and then click Confirm to finalize the transfer. Any pending orders will also be visible below, allowing you to monitor the market activity for the token.

4. Order Execution and Token Receipt:

Once your order is executed, you will receive the token at the settlement date. For example, if the settlement time is “11/22/2024 17:00 (UTC),” your tokens will be transferred to your account at that time.

Read More: Bank Account Freeze by Cyber Crime for P2P Trading (Recovery Steps)

How to Research Before Buying Coins in Pre-Market

1. Understand the Project

Start by reviewing the project’s whitepaper. This document outlines the purpose, technology, and roadmap of the project. Make sure the goals are clear and realistic.

2. Check the Team Behind the Project

Research the team members and their experience. Look for proven track records in blockchain, technology, or business. If the team is anonymous, proceed with caution.

3. Analyze the Use Case

Assess whether the token solves a real-world problem or has a unique use case. Tokens with a strong utility tend to have higher adoption potential.

4. Look at Partnerships and Backers

Check if the project has reputable partnerships or backing from established venture capital firms. This can indicate credibility and potential for growth.

5. Review Social Media and Community Engagement

Active social media channels and a vibrant community on platforms like Telegram, Discord, or Twitter are good signs of interest and support. However, beware of fake hype or bots.

6. Verify Tokenomics

Understand the token’s supply and distribution. Ensure there’s a fair allocation of tokens and no excessive supply that could lead to inflation or dumping.

7. Assess the Roadmap

Check the project’s roadmap and see if the team has met past milestones. A realistic and clear timeline shows professionalism and focus.

8. Read Market Sentiment

Look for discussions on forums like Reddit or crypto communities. This can give you insight into public sentiment and potential risks others have identified.

9. Check Pre-Market Trading Terms

Analyze the trading duration, pledge rate, settlement time, and fees. Ensure you understand how these terms impact your investment.

10. Look for Red Flags

Beware of unrealistic promises, lack of transparency, or overly aggressive marketing. Projects with vague details or excessive hype often fail to deliver.

11. Simulate Potential Risks and Returns

Evaluate the downside if the project fails and compare it to the upside if it succeeds. Make sure the potential reward outweighs the risk.

By conducting thorough research, you can make informed decisions and minimize risks when investing in tokens during pre-market trading.

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