2024-04-29 11:46:26
What Is Cryptocurrency Listing?
The authors of many crypto projects consider listing a cherished goal. Getting on a major trading platform provides access to a wide audience of investors and serves as a kind of quality certificate, increasing confidence in the cryptocurrency and its potential. At the same time, novice investors may not fully understand what a cryptocurrency listing is and what benefits it provides.
In this article, we will tell you what path new coins take before entering the open market, how their price changes at different stages, and how to use these moments to make money.
Content
Cryptocurrency Listing
In simple words, cryptocurrency listing is the process of adding new assets to trading platforms. When a cryptocurrency appears on an exchange, all users have access to it. They can exchange it for other tokens or fiat money.
For an exchange to add a new cryptocurrency, developers must confirm its safety, technological reliability, liquidity, and usefulness. Investor interest and the reputation of the team behind the project are also essential. Cryptocurrencies that successfully go through the listing process on major exchanges can get more attention and attract more investors.
ICO and IEO
Before applying for cryptocurrency listings, developers try to raise funding for the development of their projects. Initial Coin Offering and Initial Exchange Offering methods provide ample opportunities for this:
- ICO (Initial Coin Offering). The company issues a certain volume of tokens and sells them to investors in exchange for Bitcoins, Ethereum, or other cryptocurrencies. ICO is conducted without intermediaries.
- IEO (Initial Exchange Offering). The project authors cooperate with a crypto exchange, which conducts token trading directly on its platform.
How can I learn about adding new cryptocurrencies to the listing?
To receive up-to-date information, we advise you to follow:
- announcements and news of exchanges you trust on websites and social networks;
- crypto monitoring services, which often publish calendars of upcoming listings;
- thematic Telegram channels.
In addition, you should regularly monitor the official websites and social networks of the crypto projects you are interested in. There, you will be able to get the latest information directly from developers.
Beginner investors are also often interested in where to see cryptocurrency listing on the exchange. As a rule, the list of top coins is displayed on the homepage of the site. By clicking on it, you can see a list of all cryptocurrencies available for trading.
Steps after the application for listing: Basic steps
For a new cryptocurrency to appear on the trading platform, you need to go through five steps:
- Submission of an application: developers send the exchange detailed information about the project.
- Verification: platform specialists thoroughly analyze the crypto project and provide an answer within 3-5 days, but sometimes, the process is delayed for weeks.
- Discussion of terms: if the decision is positive, the platform sends a document with the terms of cooperation, after which the parties sign the agreement.
- Marketing campaign: developers announce the upcoming listing to the community and hold events to attract attention to the project.
- Trading launch: on the agreed date, the coin becomes available for transactions on the exchange.
Effect of Listing on Token Price
Having found out what a cryptocurrency listing is, let’s talk about how this process affects their value.
Once tokens are added to an exchange, their liquidity increases as they become available for trading to more market participants. This can lead to an increase in demand and a rise in prices.
Earnings from Listing
You can buy new tokens before they are even listed on an exchange and profit after the listing when the rate increases. New cryptocurrency listings also allow you to earn on arbitrage, as the price of the asset on different exchanges may differ. You can buy a token cheaper on one exchange and immediately sell it more expensive on another.
FAQ
You can find out about new coins that will soon become available for trading on the websites or social networks of exchanges. Up-to-date cryptocurrency listings are always published on the main pages of exchanges.
Sometimes, it is difficult to predict whether the price of a new cryptocurrency will increase after listing or not, so this type of earning can be risky.
After the application is submitted, the crypto project is verified by the exchange. If the answer is positive, the parties discuss the terms and sign an agreement. Developers conduct a marketing campaign and announce the upcoming listing to the crypto community. On the agreed date, trading starts.
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