Digital assets can be traded even before they are officially listed on decentralized or centralized exchanges. Simply put, a premarket allows you to buy and sell cryptocurrencies before they become available to all traders. Follow this article and find out how to trade pre-market.

What is pre-market trading?

This mechanism has quickly become popular in the cryptocurrency space as investors seek to gain access to new tokens as early as possible, and projects seek to raise capital before entering the market.

• Access to assets before others – traders can buy tokens before the official listing (while others rush to make deals, the assets will already be in their wallets).
• Risks – traders do not always understand the real potential value of an asset, so both risks and opportunities are hidden here.
• Speculative nature – prices in the premarket can change several times a day depending on demand.
• Collateral mechanism – on some platforms, sellers post a deposit to guarantee the fulfillment of the trade.

Pre-market crypto trading can be carried out in several formats:

1. Decentralized exchanges (DEX) – on platforms such as Whales Market, tokens are sometimes sold through smart contracts before their official launch.
2. Centralized exchanges (CEX) – platforms such as Bybit, Binance, and KuCoin have special sections that offer pre-market trading. There, users can place orders for future assets.
3. OTC market (Over-the-Counter) – traders negotiate with each other outside the main exchanges. This is the least regulated format, but it allows you to buy and sell unique assets.

There are several important differences between pre-market trading and classic cryptocurrency trading:

• Trading time. Regular trading takes place after the official listing, while the cryptocurrency premarket takes place before it.
• Price determination. In the pre-market, prices are agreed between the buyer and the seller, while in the regular market, prices are determined on the exchange through the mechanism of supply and demand. Some large investors may artificially inflate or lower the price of a token before listing.
• The risk of project failure. Not all crypto projects survive the premarket. If the token is not successful, its value may drop to zero, and the team will simply disappear.
• Liquidity. In the premarket, it is usually lower, so the value can fluctuate. This means that it can be difficult to quickly buy or sell an asset at the desired price.
• Guarantees of trade execution. In classical trading, the exchange acts as a guarantor of trades, while in the pre-market, smart contracts or collateral are more often used. On some platforms, sellers may not fulfill their obligations. To minimize this risk, use smart contracts on DEX or centralized exchanges (CEX).

Who trades pre-market?

Pre-market cryptocurrency trading is typically available to institutional investors, large-scale traders, and select retail investors who have access to advanced trading platforms. When considering who can trade pre-market, it's usually those with access to global exchanges that support early trading hours. Pre-market trading today is driven by market-moving news, institutional strategies, and liquidity providers looking to capitalize on price fluctuations.

How to buy cryptocurrency on the premarket?

Pre-orders on the pre-marketplace work as an agreement between the buyer and the seller:

1. The seller (usually the airdrop recipient or an early investor) puts the token up for sale before the official listing.
2. The buyer offers a price and reserves funds for a future trade.
3. The pre-market crypto platform acts as a guarantor, holding the assets until the listing or execution of the trade.
4. When the token is officially launched, the asset is transferred to the buyer if the conditions are met, or the deal is canceled if not.

Some platforms may allow you to set market or limit orders. In this case, if you trade in pre-market, the trade is executed automatically when the conditions are met.

Where can I find projects for pre-market trading?

If you want to participate in pre-market futures trading, look for crypto exchanges, OTC platforms, and decentralized premarket places. How do you trade in pre-market? Let's take a look at a few of them.

Crypto exchanges with pre-market trading: Bybit, Binance, KuCoin, OKX

Bybit Pre-Market Spot allows you to buy launchpool tokens before their official launch and uses a collateral system: you can post a guarantee, which reduces the risk of fraud. Another advantage is an intuitive interface that is suitable for both beginners and professional traders.

KuCoin Pre-Market allows traders to buy tokens just before they are listed on KuCoin. Buyers and sellers agree on the price through P2P trading.

Although Binance does not officially have a crypto pre-market, Launchpool and Launchpad fulfill this role. Users can buy new tokens using USDT or BNB staking. After listing, such assets usually increase in value.

OKX Jumpstart is a special platform to invest in new tokens in advance. It works through staking or lottery and is one of the most popular platforms among Asian investors.

OTC trading platforms

If you want to bypass centralized exchanges, you can try OTC (Over-the-Counter) platforms. These are platforms where you can make deals outside the exchange.

Whales Market is a decentralized OTC market specializing in pre-market crypto. It uses smart contracts for security. You can buy not only tokens but also points of projects that turn into airdrops.

Many traders use private groups on Telegram or Discord to buy tokens on the premarket. However, there is no guarantee that the seller will fulfill their obligations, so trades are risky. To reduce risks, trades are often conducted through trusted intermediaries (escrow services).

Some P2P platforms, such as LocalCryptos or Hodl Hodl, allow you to organize private trades with pre-existing tokens. Here you can find investors who will sell tokens before they are listed.

Decentralized premarkets

DEX pre-markets allow you to buy crypto coin pre-market without the participation of centralized platforms.

• Whales Market is the most famous DeFi pre-market. It supports pre-trading of tokens that are not yet available on exchanges and uses smart contracts, so it has a high level of security.
• Some projects use decentralized exchanges such as Uniswap, Balancer, or SushiSwap to pre-distribute tokens.

Forums and NFT marketplaces

Some traders use OpenSea and Rarible to sell future tokens in the form of NFT trades. However, this method is less popular than its alternatives.

How to buy launchpool token before the official listing

Follow this algorithm:

1. Find a platform that offers pre-market trading. For example, Bybit (you can sign up using our link and get gifts).
2. Check the terms of the deal. Examine the available tokens, collateral requirements, and asset lock-in period.
3. Place an order. If you are a buyer, specify the number of tokens and the amount you plan to pay. If you are a seller, offer your assets.
4. Block the funds. Most platforms hold funds until the trade is completed.
5. Receive the tokens after the listing. When the asset becomes available, the tokens are automatically transferred to the buyer or the trade is canceled, then the funds are returned.

Trading on the crypto pre-market is an opportunity to enter promising projects early, but it requires careful pre-market data analysis. However, launchpool tokens are often sold in the pre-market at a lower price than after listing, but the real market value after launch may be lower than you expect.

It is important to choose trusted pre-market trading platforms, monitor liquidity, and assess risks before investing.

Earning money on the pre-market crypto market is a real opportunity to make a profit, but it involves high risks. The most effective pre-market trading strategy is arbitrage, along with long-term investment, and speculation on the listing.

If you want to learn how to trade in pre-market, the main rule is a thorough analysis of projects and platforms, as well as readiness for market volatility. If you use pre-market trading correctly, it can become a powerful tool for making money in the cryptocurrency industry. And with our Bybit | Bikotrading.com referral link, trading is even more profitable.