Adding a coin to a trading platform is often accompanied by a several-fold increase in the price of the asset in a matter of minutes. The strength of the movement depends on the exchange where sales are scheduled to begin and the size of the project’s community. To earn on the listing of cryptocurrencies, you need to register on the trading platform and subscribe to the pages of the development team in social networks. Next, you need to buy tokens of the network in which the coin is issued. For example, coins created in the Binance Smart Chain blockchain are initially available only for BNB.
How cryptocurrencies are listed
The successful start of trading on the exchange determines the future of the coin. In case of a positive outcome, the company increases confidence in the product, increases the number of community members and receives additional funds for the development of the project. The very procedure of preparation for listing is divided into several stages, which may be similar on different platforms:
- Transfer to the exchange of a roadmap with a detailed description of the purpose of the product, the date of creation; technical documentation (white paper); source code repository and description of the members of the development team.
- Analysis by the administration of the trading platform.
- Conclusion of an agreement on access to coin trading and scheduling of the listing. Additionally, it is determined whether the pre-sale of a limited number of tokens will be available to registered users of the site.
Usually, decentralized exchanges have a much easier time getting permission than large CEXs like Binance. Due to weak controls, investors often encounter fraud. Earning money from cryptocurrency listings involves a calibrated analysis before deciding whether to include a coin in an investor’s portfolio.
In case of complaints from participants in the trading process, changes in the requirements of regulators, small liquidity, violation of the rules of the crypto exchange or fraud on the part of developers, the project will be removed from the exchange – delisting.
Tokens, ICOs, IEOs
Pre-purchase of coins can bring good profits. This is due to the limited supply of coins before the general trading. Such sales are conducted to attract investment and to dial up the initial amount of liquidity for the start of the listing. It is an indicator of the community’s interest in the product: if bidding ends in a few minutes, it indicates high demand. The most common forms of raising are ICOs and IEOs, which have distinctive features.
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Who can invest | ICO | IEO |
Any user | Registration on the exchange is required | |
Beneficiary | Developers | The trading platform takes % of the collected amount |
User identification | Not required | Profile verification |
Preliminary verification of the project | Not conducted (in most cases) | Evaluation by exchange experts |
Marketing | Conducted by developers | In promotion, a significant place is taken by the trading platform, which informs all registered users through social networks |
After a large number of fraud cases in 2017, at the peak of ICO popularity, a new form of fundraising was proposed to increase the protection of investors’ interests. IEO simplified pre-sale participation to a routine cryptocurrency exchange transaction through an exchange.
Listing results on the charts
Some coins, after a successful start, consolidate at new price levels and show long-term steady growth. Others, having started sharply, quickly slip back to the initial indicators and stagnate for a long period. Almost all of them start with growth, allowing traders and investors to make big profits in a few minutes.
Positives
Last Survivor is a meta universe project based on BSC. With a starting price of $0.01, it reached the $1.6 level in just a few minutes, showing a one-step increase of 1600%. The price subsequently dropped to $0.33, remaining 30 times the initial price.
Operon Origins, the first NFT card battle game with a starting price of $0.15, reached $23 per token, or 15,000%, in the first hour of trading.
Negatives
Decentralized startup FlokiPad, an exchange platform based on the Binance Smart Chain ecosystem, failed to live up to the market’s expectations. As a result, its value more than doubled in the first few hours.
The TryHards meta universe development team released a native game token. After a brief burst of activity, the price quickly returned to the initial price without bringing any profit for long-term investors.
Project analysis
The parameters for choosing an investment object depend on the strategy used – short-term speculation or long-term investment. The trader needs to assess the current value of the product and compare it with the market value.
If the startup is undervalued and the ideas embedded in it are in demand, it is possible to consider the coin for purchase.
Scalability
The technology on which a project runs determines its ability to grow. A good product should be able to handle the influx of users without delays and increased transaction fees. If developers do not provide the proper level of liquidity at the beginning of the listing, it will lead to a sharp rise in price in the first minutes of trading followed by a rapid decline. Eventually the price will come to equilibrium after some time, but the imbalance created at the start will lead to large losses for traders and limit future growth of interest in the product.
Large community
The size of the audience in social networks, the volume of active addresses in the blockchain and the number of users reflect the real value of the project. Subscribers of Telegram channels, Twitter and Discord form a community where communication with developers takes place and reflect the real interest in the product and its demand.
Analyzing communication channels, you can judge about feedback communication with users and the speed of solving technical problems.
Other factors to analyze
In order to comprehensively evaluate the product and determine the prospects for a possible listing, you should familiarize yourself with the white paper and road map. The data obtained will help to understand what market needs the project addresses and on what technologies it is based.
Many developers hold Ask Me Anything workshops where community members can ask questions regarding everything from bug fixes to marketing plan and tokenomics.
How to make money from cryptocurrency listings
There are a few basic strategies to profit from starting to trade new coins:
- Pre-Sale. By participating in pre-sales, you can buy a coin at an initial price a few days before the listing. Developers organize a contest, everyone who wants to participate submits bids. Winning accounts get into the white list, which gives the opportunity to participate in the pre-sale with a limit on the maximum purchase amount for one participant. Usually the limit is $50-$1000, but there are exceptions.
- Early speculation. Traders track the appearance of liquidity in order to be among the first buyers. After the price increases 3-5 times the position is liquidated. With the emergence of sniper bots, it is becoming increasingly difficult to acquire tokens manually at a price close to the starting price.
- HODL. A strategy of long holding in expectation of growth of the asset rate.
How to make money on a listing without buying tokens
There are ways that allow you to get coins without investing money and then sell them profitably at the beginning of trading on the exchange.
Name | Description |
---|---|
Airdrops | Free token distribution to attract attention to the project. Conducted on a competitive basis. |
Bounty | You can earn cryptocurrency for performing simple tasks: registration on the project website, reposts in social networks, help in translation into local language. |
Recommendations for investors
Long-term investments allow you to earn on the listing of cryptocurrencies when using the following tips:
- Beginning investors should not try to buy at the starting price, you should wait for stabilization and the beginning of moderate growth.
- It is necessary to divide the allocated amount into 2-3 parts: in case of price decrease, you can average the entry point, and when the price rises, the profit of early orders will cover the possible loss of later ones.
- It is worth entering new projects with a small amount of capital, gradually increasing investments while maintaining development prospects.
Summary
The listing of cryptocurrencies on trading platforms is an event that determines the future fate of the project. Thanks to the inclusion of the coin in the list of trading resources, companies increase investor interest and reputation, attract new users, increase capitalization and gain development prospects. Traders, in turn, can earn on the listing of cryptocurrencies due to short-term fluctuations in the exchange rate. Long-term investing requires a more careful selection of projects than speculation.
Frequently Asked Questions
❓ Where is it more profitable to participate – in ICO or IEO?
Due to the negative coloring of the first option, more and more projects choose the second one. This is due to the media support from the exchange and the confidence in this method on the part of many investors.
💡 What is tokenomics?
It is a plan that contains data on the volume of coins issued, stages of issuance, distribution among participants. Knowing it, you can tell exactly at what point in time how many coins are in circulation, when they were created and who owns them.
💰 Where can I find out about upcoming coin giveaways?
Such information is posted on social networks and on the official website of the project.
🔎 Where are the White Paper and Road Map?
The white paper and road map are published on the official project website and in the social networks of the community.
🧾 How to participate in the listing?
You need to register an account on the exchange and replenish your wallet with the amount of the proposed investment.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.