Crypto Exchange Listings: A Guide to Earning Profits
Listing is the process of adding a new trading pair to an exchange. It is often accompanied by a surge in the asset's price, which can increase several times within a matter of minutes.
Listing on the most popular exchanges is seen as an indicator of a project's quality. It encourages trading and enhances the liquidity of a specific asset.
To get a token listed on a centralized exchange (CEX), the project creators first need to submit a listing application. This application is reviewed by the exchange representatives. If approved, the project authors must pay a listing fee, and the exchange will add their token to the list of trading pairs. However, the listing process on an exchange has its own unique characteristics. Each trading platform has its own set of rules and requirements that assets must meet before they can be listed for trading. Exchanges perform a thorough analysis of a project before deciding whether to list the asset or not. This analysis includes evaluating the project's team, mission, and community.
The larger the exchange, the greater the chance that the asset's price will experience a positive reaction to news of its listing.
How to profit from cryptocurrency listings?
To put it briefly, the scheme works like this:
- The announcement of the token's listing is made.
- Investors can buy the token on a DEX like PancakeSwap, or on a CEX.
- Investors can choose to sell the token before the listing or during the listing itself.
Let's take a closer look at this process.
The announcement of the listing
The news about a token's listing is typically announced in the exchange's news section, on Twitter, and other social media platforms. These announcements usually happen in the morning. It's important to note that before a token is officially listed, the information about the listing is considered insider information, and it's illegal to use it for personal gain or to leak it to others. Doing so can result in severe consequences, including hefty fines and imprisonment.
To keep up with the latest listings, there is a Telegram bot available that automatically collects information about upcoming listings and shares it with subscribers – https://t.me/coin_listing
Buying tokens on DEX or CEX
After the news of a token listing comes out, it's important to find the contract address of the token and information about where it can be purchased right now. You can use CoinMarketCap to do this. Simply search for the name of the token and find where it's being traded. This could be on another cryptocurrency exchange, in which case it's better if you already have a balance there to make the purchase because time is of the essence. Alternatively, it could be on a decentralized exchange. It's important to keep an eye on how the token has already reacted to the news and how much it has grown in price.
There are two options: either buy the token right away (if it hasn't already reacted strongly to the news), or start tracking the price (in order to have the opportunity to buy the tokens cheaper).
Selling tokens before or during the listing
- Earning before listing.
You can quickly buy the token in the first few minutes after listing, while it hasn't reacted much to the news yet. You can do this on a DEX or another exchange where it's traded. Within a very short period of time, you should sell the token, thereby making a profit from the price difference.
- Earning during the listing.
After buying the tokens, you need to deposit them on the exchange where the listing is expected. Then wait for the trading to start and quickly sell all assets on the first candle, of course, if the price suits you.
Final words
Earning profits from listings is definitely possible, but you need to act very quickly and closely monitor news about listings on exchanges. However, it's also very risky as you may be late to the party and buy the token at its peak price. That's why this method of earning money requires a level-headed approach.