The cryptocurrency price increases after being added to the list. Therefore, crypto listing becomes so popular, and demand for it is still growing.
Listing: The Basics
The main criterion for the value of any currency is its prevalence. The more the number of people who use a coin, the greater its value. Information that some new cryptocurrencies will be added to the top platform significantly stirs up interest in them.
An increase in demand for an asset inevitably leads to an increase in its value. On average, after adding, the value of cryptocurrency increases by 25-30%. This is the so-called ‘stock market effect,’ which is achieved through popularization. It should be noted that the effect is often short-term, and after the hype, the value of the coin begins to gradually decline.
Sometimes, the opposite situation is also observed, when immediately after getting into the listing, the value of the coins begins to decline sharply. As a rule, this applies to coins launched as part of an ICO. Those who invested during the token sale seek to take profits and actively sell the asset on exchanges.
How can an investor make money on this?
Experienced investors have learned how to make money on any cryptocurrency market events, and listing is no exception. The scheme of earnings is quite simple:
- The news summary is monitored.
- Having found information about the upcoming addition, the investor buys the asset before it enters the exchange.
- After being added to the exchange list, the coins ‘merge.’
The most essential is to choose the right exit point from the market. As a rule, the coin has increased interest; the value is held for several days or a week and then gradually decreases. Novice investors are advised to sell coins without delay. With experience tracking price corrections, you can wait for the highest price.
Despite its simplicity, the method is also associated with several risks:
- The news may be fake.
- Wrong choice of a digital asset.
- Incorrect exchange choice.
Pros and Cons of Listing
It is no accident that developers put in so much effort to get listed on exchanges. Adding a token to a listing has a number of benefits for the developer:
- Increase in attractiveness for investors.
- Facilitation of the project development.
- Increased confidence in developers.
- Better capitalization.
- Expansion among the community and the area of influence.
For investors, adding to the listing is a guarantee and an opportunity to earn more. Experts have verified the reliability of such coins. An increase in liquidity is also a significant advantage for investors. Those who invested in the asset during the token sale can now be sure that they will be able to sell coins and take profits.
The disadvantages of adding to the listing include a complex procedure and the payment for a commission for analysis. In addition, after entering the exchanges, cryptocurrencies attract special attention, and from that moment on, any change in the project’s policy will be instantly reflected in the value of the coins.
