Pre Market Crypto: Trading Tokens Before Launch

Bittime - The world of crypto is constantly evolving, and new ways to participate in the market emerge regularly. One of these innovations is the crypto premarket, which allows users to trade tokens before they are officially launched or distributed. 

This article discusses the concept of crypto premarket, how it works, as well as some of the benefits and risks associated with this trading style.

What is Pre Market Crypto?

Unlike traditional financial markets that have a pre-market session before the official opening bell, crypto markets operate 24/7. However, the concept of crypto pre market or pre-launch market in crypto refers to the trading of tokens that have not yet been launched or distributed to allocated wallets. This provides an opportunity for investors to speculate on the potential value of a token before entering the main market.

Pre market crypto not limited to tokens; they can also facilitate trade protocol points, which could potentially be converted into an airdrop in the future. However, it is important to remember that pre-launch trading is highly speculative and requires thorough research before investing.

Why Are Crypto Pre Market Platforms Becoming Popular?

Before the advent of pre-market platforms, investors used less secure methods to trade pre-launch tokens, such as peer-to-peer (P2P) arrangements. This method is often fraught with trust issues and accessibility limitations.

Pre-launch marketplace platforms offer a safer and more efficient alternative. They usually operate as follows:

• Escrow Service: Funds from the buyer and seller are held in escrow until the trade is completed. This reduces the risk of either party failing to fulfill its obligations.
• Decentralization (Optional): Some platforms use smart contract to automate the entire process, eliminating the need for a central authority.
• Increased Liquidity: The pre-launch marketplace connects global buyers and sellers, creating a more liquid environment for pre-launch assets.
• Market Insights: Pre-launch market activity can provide valuable insight into potential investor interest and demand for a token before the official launch.

How Pre Market Crypto Works

Pre Market Crypto functions similarly to traditional P2P trading platforms, with one key difference: Escrow secures funds for both parties. Here are the process details:

1. Order Creation: Buyers and sellers can create or fulfill existing orders. Orders specify the price and quantity of the desired asset.
2. Security Deposit (Seller Side): Sellers may be required to deposit collateral as a guarantee that they will deliver the tokens once the trade is completed. Failure to do so may result in loss of part or all of the guarantee.
3. Fund Deposit (Buyer Side): Buyers must deposit the full amount for the tokens they wish to purchase. These funds are held in escrow until the seller delivers the tokens.
4. Trade Solutions: Both parties have a certain period of time (settlement period) to fulfill their obligations. Smart contracts or platform mechanisms facilitate the release of funds and tokens once the trade is completed successfully.

Types of Crypto Pre Market Trading Available

The pre-launch market offers the opportunity to trade a variety of pre-launch assets, but remember, it is highly speculative:

• Pre-TGE Token Trading: These markets allow trading of tokens before a Token Generation Event (TGE), often associated with a project airdrop.
• Points Market: Some projects award points to users as a measure of their activity on the platform. Points can be traded before being converted into tokens.

A Look at Whales Market: A Decentralized Crypto Pre Market Platform

Whales Market is an example of a decentralized crypto premarket platform built on the Solana network (with expansion to other chains). This platform serves:

• Pre-TGE Token Trading: Users can buy and sell tokens before the official launch.
• Points Market: Trade the points awarded by the project for future token conversion.
• OTC Trading: Facilitate secure over-the-counter (OTC) trading for certain tokens.

Whales Market uses smart contracts to manage the entire process, creating a trustless environment. Users interact with the platform through these contracts, ensuring safe and automated pre-launch token trading.

Conclusion

Pre Market Krypto offers a glimpse into the future value of a token, allowing early investors to capitalize on growth potential. The platform also provides a safer alternative to traditional P2P methods for pre-launch token trading.

How to Buy Crypto in Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor graphic movement Bitcoin (BTC) price, Ethereum (ETH) Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.