If you’re just starting to invest in cryptocurrency, you may have come across the term “whitelist” and wondered “what does whitelisting mean in crypto?”
The first thing to know is people who are whitelisted often have more investment opportunities than the average person, putting them in a better position to make money.
Of course, you want to know how and why this happens. In this post, we’ll explain what whitelisting is, why they’re used, and how to get approved for a crypto whitelist.
So let’s start with the first question: “what does whitelisting mean in crypto?”
What is a Whitelist?
A whitelist is usually something that gives specific people priority or sole access to an item or offer.
For example, a whitelist for a new piece of technology (such as a top-tier gaming computer) might only allow specific people to purchase it. Or, the whitelist might give those people early access, discounts, etc. to the item. It depends on what the creator of the whitelist decides.
What Does Whitelisting Mean in Crypto?
It’s pretty much the same concept in crypto. The whitelisting practice is usually associated with new coins, initial coin offerings (ICOs) and initial exchange offerings (IEOs). However, they don’t generally grant pre-access as much as they restrict access to certain parties.
Crypto whitelists will typically list a user’s address instead of their name or personal info since cryptocurrency mostly operates based on virtual addresses.
Many whitelists have criteria to meet before being eligible such as having a referral code or a minimum amount of funds to invest.
How Do I Get on a Crypto Whitelist?
The first step to be chosen for a crypto whitelist is to find a deal you want to participate in.
The best way to look for whitelist opportunities is to join the coin or NFT’s discord server.
Discord servers often include important information about the coin or token you’re interested in. You’ll also be able to interact with others interested in the project and give you a point of contact for administrators.
Look for background on the project’s founders, a roadmap of the token’s release, the latest announcements, and more. Here is an example of what a roadmap looks like.
There may also be instructions on how to apply for the whitelist. Look for platform-specific requirements that must be met to submit your application. This could include emailing a particular member of the launch team, joining their online forum, etc.
You will probably be asked to provide your cryptocurrency wallet address, personal identification, and birthdate to verify your identity.
What Happens When You Are Whitelisted as an Investor?
When you have been whitelisted in crypto, you become eligible for certain offers such as a presale for a new cryptocurrency, participation in a brand-new exchange, or a crypto-related event in general.
As we mentioned before, the whitelist itself will not list your personal information. However, you will still have to provide your personal information to be submitted to the whitelist.
You might be expected to provide your name, email address, and/or a government ID. This information is used to verify who you are and ensure you are eligible to be on the whitelist.
Once your information is received and confirmed, you’ll receive an email explaining how the sale or coin offering works and how you can make your purchases.
Investors are usually chosen randomly from the pool of applications.
What is an NFT Whitelist?
Some whitelists are NFT-specific. A quick reminder: NFT is short for non-fungible token and represents a unique digital asset.
To learn more about non-fungible tokens, visit our blog post on what NFTs are and how to make them.
When you have access to an NFT through a whitelist, you are guaranteed minting access. You also gain access to premium prices that others don’t have access to.
Additionally, the whitelist allows you to avoid network traffic and outrageous gas fees while also being able to choose the time you want to mint your NFT.
While cryptocurrency whitelists can provide many benefits, it can take time and effort to be accepted.
This includes doing your research before applying as well as completing the application process.
Keep in mind you won’t always be chosen.
If you’re interested in learning more about cryptocurrency, be sure to visit our latest blog posts or visit our illustrated chapters on Crypto Basics. Or, learn more about crypto lingo using our Cryptionary function!
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