What you need to know about listing on CEX exchanges
The very word listing in the crypto sphere means listing. Listing a token and a coin on the CEX crypto exchange means that all users will freely and easily use them for their investment or trading actions, operations, namely, to easily sell and buy them. This, in turn, increases their liquidity, and especially if it entered a popular exchange with a huge number of users.It is worth noting that the listing also has a marketing strategy. For the most part, when listing a new coin or token, the exchange itself makes some kind of official statement. In turn, this is picked up by many news resources and promote the event. That is, the listing helps to attract the attention of the entire team to the project of investors and token owners.
How is listing on the CEX exchange carried out?
When a person creates his own blockchain project and releases his token on a certain platform, he conducts an ICO - attracts investments in his startup. Everything went well and the team sold the tokens to investors and received a certain amount of money.Now their task is to prove to their investors that their project is not some kind of fraud. How can this be done? I think you can guess - to create the value of the token in parallel with its development.The more time has passed since the completion of the ICO, the more caution and distrust of investors and society grows. After all, they must be sure that they have acquired a high-quality and promising product that they can sell on the market at any time.Caution and distrust of investors can end badly, namely the end of the project itself. That is why, in order to relieve the tense situation, the owners need to create the value of a coin or token by creating a growing supply and demand for it, in other words, to bring it to the market. This can be done through the exchange, where the listing of the token is required on as many exchanges as possible.As a rule, the project at the first stage chooses a couple of small exchanges and only one of the most popular ones. After all, listing on such exchanges is paid - and the larger the exchange itself, the more and more expensive you will have to pay for it. But in this case, it is better to choose one exchange. Then you need to submit an application for listing and after consideration it is accepted and an invoice is sent for its payment. After receiving the payment, the exchange is engaged in the technical connection to the trading and informs you about the start time of these trading. You, as the owner of the token, must make an official statement about the beginning of the existence of your token on the exchange and you can start trading it!
How to make money on listing in CEX crypto exchanges
According to statistics, many tokens grow in price by 30-40% after the opening of trading on the exchange. This is called the stock market effect. The data that some new coin will soon be added to a well-known exchange, the interest of users is very warmed up. Nevertheless, it should be taken into account that the effect is often short-lived and after such a boom, the value of the token may decrease. And if the listing takes place on a small site with a small number of traders, then the price may generally remain at the old level due to low demand. But sometimes you can see the opposite situation, when immediately after the listing, the price of the token simply starts to drop sharply. Investors seek to fix their profits and actively begin to sell their assets on the stock exchange.
Listing earning strategy
Consider the strategy of earning on the listing in more detail - it includes:- studying, checking and tracking news about future listings;- purchase of an asset in advance, if it is already traded, with a previous sale of the asset after entering new exchanges, or purchase and sale for the first time after listing.In most cases, if the token has an increased interest, then the raised value of the asset due to the exchange effect will be held for several days or weeks and only then will it constantly decrease. But despite this simplicity, it is worth noting that the strategy has certain risks. The first is the wrong entry and exit point. It is difficult for people who have entered this area to determine the correct time for entering and exiting an asset, through which one can become an investor for a long time. Therefore, to minimize this risk, you need to choose assets with good growth potential. There is also the risk of choosing the wrong exchange. It is important to understand here that one of the important roles in the profitability of such investments is played by the popularity of the platform where the listing takes place. Adding assets to CEX exchanges may not cause such a general hype.
