What is cryptocurrency listing and how can you lose money on it?

When you start to become interested in the cryptocurrency market, at first you get the impression that only the laziest don’t make money on it.

Some engage in arbitrage on different exchanges, others play on the cryptocurrency rate, and still others make money from listings.

Listing a cryptocurrency is the process of adding an asset to a cryptocurrency exchange, where traders can buy and sell a coin for other cryptocurrencies or fiat money. That is, after the listing, it will be possible to easily buy or sell a new coin at the market price.

Before a cryptocurrency appears on the public market, its price is quite arbitrary and it is difficult to guess how much a new coin actually costs.

It is assumed that after the new cryptocurrency begins to be freely traded on the exchange, its price will definitely skyrocket and thousands of percent can be earned on this movement.

But is everything so simple in this matter and how guaranteed is profit?

Real Cryptocurrency Listing Experience

I usually do speculative trading of cryptocurrencies through a broker , and recently I had the desire to participate in trading in the initial offering of cryptocurrencies on Binance .

The listing of such a cryptocurrency as Omni Network (OMNI) was planned for the coming dates; by all indicators, this coin should have risen in price quite significantly after the start of trading. The purchase was carried out without using leverage through spot.

I wanted to purchase Omni in the first seconds after listing, since, according to reviews, it is at this time that the price increases rapidly.

The listing began at 14:00, and my order was opened at 14:00:17, that is, 17 seconds after the start of trading and at a price of 49.96 USDT per coin. Opening the trade took 17 seconds, although I immediately clicked on the “Buy Omni” button, which means the execution speed on Binance is still the same.

After the start, the price began to decline rapidly, literally in 41 minutes it fell to 35.84 USDT per Omni, at this price it was decided to close the position. As a result, losses amounted to about 30%.

Now the price of Omni is around $25, that is, if the coins were not sold, the losses would be 50%.

You can lose money during listing in another scenario. An interesting example was the SAGA listing. Here the scenario for the development of the event is a little different, after the start of trading the price began to decline, and only after 2 hours did it begin to rise.

As a result, if you bought SAGA at the original price, you most likely sold at the beginning of a downtrend and again ended up with losses.

As a result, we can conclude that making money on a listing is not as simple as others say about it. cryptocurrency farming more , although there are a lot of nuances that should be taken into account when participating.