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Let’s start with a very simple idea. Imagine that someone asks what the difference between a “vehicle” and a “car” is. I would probably explain that the “vehicle” is the great main category. A “car” is just a specific vehicle type. A truck, a truck and a motorcycle are also vehicles.
In the world of cryptocurrency, the words “presale” and “ico” have this same exact relationship. Many people are confused with these terms, but in reality it is very simple once you see the overview. This guide will be your simple road map. This relationship will break down and give a clear answer to the question: “ICOS versus presales: key differences explained.”
Understand the umbrella “presale”
Before we can compare the two terms, we need to understand the main category. In this case, “presale” is the large general term that covers everything that covers everything.
What is a cryptographic presale?
In the simplest terms, a cryptographic presale is any fund collection event. It is where a new project sells its new tokens to investors before it is launched in a public exchange such as Binance or Coinbase.
It is the earliest stage that can be involved in a new cryptographic project. When looking for new investment opportunities, you are essentially looking for the upcoming cryptographic presales. These are the special events that give it the opportunity to buy a new token at its “early morning”.
The original model: What is an ICO?
Now, let’s talk about the “car” in our analogy. An initial, or ICO currency offer is one of the oldest and most famous types of presale. It is a specific type of presale with its own set of rules.
How an ico works
An ICO is a specific pre -sale type where the project team itself directs all fundraising by themselves. They do it directly on their own official website.
There is no great exchange or other third party platform involved in the sale. This direct model to the investor is the key characteristic that makes an ICO an ICO.
The era of “Wild West”
The main reason why ICOs are so famous is for the “ICO boom” of 2017. This was a wild and crazy moment in the cryptographic world where thousands of new projects were launched in this way.
Many of the most famous and successful projects of Crypto Today began as classical initial (ICO) offers. However, this model is also known for being of great risk to investors.
Modern evolution: pressures beyond ICO
The cryptographic world has grown and evolved a lot since 2017. Types of newly safer new forecasts have been created. This is a key part of the understanding of ICO versus presales: key differences explained in the current modern market.
IEO (initial exchange offer)
An IEO is a type of presale that is housed and administered by a great exchange of centralized cryptography. In this model, the exchange will verify the project in search of quality before agreeing to house the sale. This makes it a much safer option for investors.
IDO (initial offer of Dex)
A gone is a type of presale that occurs in a decentralized exchange launcher (DEX). These presales often use lottery systems to give everyone a fair opportunity to participate. They are very popular in the world of Defi, which represents decentralized finances.
A simple comparison table
A table is an excellent way to clearly see all differences. Here is a simple breakdown of the most common types of presales that you will see.
Common pre -sale types that you will see.
| Feature | ICO (the original) | That is (the insurance) | Gone (the ferio) |
| Where it passes | Project project website | Centralized exchange | Decentralized elunchpad |
| Trust level | Bass (requires deep investigation) | High (examined by exchange) | Medium (community and code trust) |
| Access method | Generally open to anyone | KYC requires in exchange | Whitelist & Lottery |
| Main benefit | Direct investment in an idea | High security | Fair access |
| Main risk | High possibilities of scams | High competition | Smart contract errors |
What kind of presale should you look for?
Now that you know the different types of presales, you can choose the one that best suits your own personal style as an investor.
If you are a high -risk policyholder
An ICO could be a good option for you if you feel comfortable with a very high risk. It is for people who want to invest directly in a new idea without intermediaries getting along the way.
If you prioritize security and trust
An IEO is probably the best for you if security is your number one priority. The revision process carried out by the exchange provides a very strong layer of security and trust.
If you are a defi enthusiasm
A gone is perfect for people who feel comfortable using decentralized exchanges and personal wallets. They are the most common pre -sale type in the modern defi world.
Always verify the market context
No matter what kind of presale interests you, you must always know the general conditions of the market. Before investing, it is an intelligent idea to verify the current prices of the cryptography market to see if the market is healthy.
Conclusion: these are the details
Let’s go back to our analogy of vehicles and cars for the last time. All cars are vehicles, but not all vehicles are cars. In the same way, all ICOs are a type of presale, but not all presalents are ICO.
At this time, it must have a very clear understanding of the ICO versus the presales: key differences explained. The word “presale” is the great category, and ICO, IEO and gone are only specific types that have their own rules and platforms.
Understanding these details will be done by a much smarter and more safe cryptographic inverter. If you ever have questions about the presale model of a specific project, it is always a good idea to contact a team of experts in search of help.
