The cryptocurrency listing process is an important stage for a project that could shape its future. After passing the listing, the company that issued the cryptocurrency improves its reputation and increases the number of users. Oftentimes, the price of the coin itself can also start to rise. However, not all companies manage to pass the listing procedure. In addition to the high cost of the idea, there are other stages that the project has to go through. How is the listing of cryptocurrencies on exchanges, we will analyze in this article.
Definition
Listing – adding to the list. In the cryptocurrency sector, this means that the coin is added to trading on the exchange. As a result, the coin will become available for purchase and sale, after getting into quotes, the price will also be influenced by market mechanisms of supply and demand. In addition, the listing is of great marketing value. The procedure is always accompanied by official statements from the developers. This can help attract new investors and users of the coin, as a consequence of this, the liquidity of the asset increases.
How the asset is listed
As a rule, the project developers are involved in starting the procedure. To do this, they submit an application to the cryptocurrency exchange of interest. The stages and requirements for services are different, but the procedure is almost the same:
- Filling out the questionnaire. In the questionnaire, you need to indicate the purpose of the project, the date of its creation, a link to the source code, Whitepaper, roadmap and developer data;
- After that, the project is analyzed by platform experts;
- Experts decide whether to add a new asset to the list of trading resources;
- If the project is approved, an agreement is made.
An application can be considered for several days or weeks.
Project companies initially try to send applications to unpopular sites, since the conditions and requirements for them are milder. This strategy is beneficial for developers. If everything goes according to plan, then the growth of quotations may attract representatives of other exchanges. However, the circulation of crypto sites is rare.
Listing Fee
Listing can be a costly affair for developers. The amount you have to pay may differ depending on the popularity of the site or exchange. The listing prices of the top exchanges can be as high as several million dollars.
However, there are also free ways to get listed. For example, there are small exchanges that benefit from receiving new coins, so they add them for free. Top platforms from time to time hold promotions, during which the service for adding coins is free. An example is the Binance crypto exchange. It sometimes hosts voting among users, where the winning coin gets the right to a free listing.
The exact exit price cannot be given. Information about this is stored in confidential agreements that provide for non-disclosure conditions.
Binance CEO Changpeng Zhao said that no amount of money would force the company to list a substandard coin. It encourages project creators to think about whether their cryptocurrency is good for users. To this statement, he added that projects such as Ethereum, Litecoin, EOS and Ripple were added for free.
Delisting
If a project is on the trading floor, this does not mean that it can be there forever. The service has the right to delist. Delisting is the exclusion of a coin from a resource. The following reasons may serve to remove a project from the site:
- Changes by regulators;
- Hacker attack on a crypto project;
- Complaints from traders;
- The developers stopped adhering to the plans for the development of the project;
- No growth in the value of the coin for a long time;
- Little liquidity;
- Violation of the rules of the crypto exchange;
- Developer fraud.
If the price of an asset starts to rise during the listing, the delisting has the opposite effect. If a cryptocurrency is removed from a cryptocurrency exchange, then traders usually react negatively to this. They begin to understand that the project has no prospects and are selling the coin.
How to make money on listing
As mentioned earlier, after listing, the price of an asset rises rapidly, so the way to make money is simple:
You need to follow the news and look for companies that are planning to list;
After that, you need to buy the asset, until the moment it gets on the exchange;
You need to sell the coin after it is included in the list of traded coins.
It is important to correctly determine the moment when you need to sell the coin. Newcomers are advised to sell assets within a few days after listing. If you know how to analyze the stage of correction, then you can predict the moment when the price of the coin will be at the highest level.
Conclusion
Listing cryptocurrencies on trading platforms is an event that determines the further fate of the project. Thanks to the inclusion of the coin in the list of trading resources, companies increase investor interest and attract new users, increase their reputation, increase capitalization, and gain company development prospects. Traders, in turn, can make money on short-term investments. But in order to start earning digital assets, we can recommend you a trader’s assistant – the RevenueBot trading bot. The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 35 thousand customers who earn money thanks to trading bots.
Why should I choose this service?
- Pay the commission only after making a profit.
- The bot settings open up a variety of ways to make a profit.
- Inside RevenueBot, a marketplace is implemented where customers can buy a ready-made bot so as not to bother creating their own, or sell their own if the configuration has shown efficiency. Also, the services of a mentor (an experienced customer of the service) are purchased on the marketplace, who is ready to answer the questions of newcomers. Over time, you can become a mentor yourself, getting additional profit for this.
- Regular updates of the service’s features that optimize the trading process.
- The presence of the RevenueBot referral program allows you to earn money on trading, even without resorting to trading. Attract new customers for the service and get up to 30% of the profit they receive every month (but not more than 15 USD).
This is a small list of the advantages of the service. You can continue to list the positive qualities of RevenueBot, but why do this if you can go to the official website of the service and see for yourself everything? It is highly recommended to make decisions faster, because the crypto market does not stand still, but grows at exorbitant steps. Who knows how much profit is missed by someone who does not dare to come and start trading with RevenueBot.