Cryptocurrency listings: is it worth investing in new assets?
New digital assets are created around the world almost every day, and the cost of creating your own cryptocurrency today is only a few tens of thousands of dollars.
But the newly created coin is, so to speak, money for internal use; the real value of such an asset is questionable.
In order to determine the real value of a coin and increase its popularity, a cryptocurrency listing is necessary.
Listing a cryptocurrency is the act of listing an asset on a digital exchange, after which the coin will begin to be sold and bought in accordance with market laws.
Typically, the listing process consists of several stages: first, a description of the new asset appears on the trading platform, then the asset is added to the list of available assets for trading. The start date of trading marks the cryptocurrency's listing.
Earning money by listing cryptocurrency
Many investors believe that cryptocurrency listings offer an excellent opportunity to profit from the increased liquidity of a new cryptocurrency. It's generally accepted that after the start of trading, coins typically rise in price, with such increases often reaching hundreds of percent.
To make money, you need to monitor announcements of new cryptocurrencies appearing in the list of available assets on one of the popular crypto exchanges, for example, Binance .
Once operations with the selected coin become available, it is purchased and all that remains is to wait for the price to rise.
But the main question most investors ask is: how guaranteed is profit from a cryptocurrency listing? Does the price of a new asset always rise after trading begins?
Surprisingly, yes, according to research conducted by one analyst, most new cryptocurrencies grow in the first days after listing:
Subsequently, price growth slows, and some assets even begin to rapidly decline in value. Moreover, the number of coins that began to decline immediately after trading began is much smaller than those that increased in value after their listing.
This is understandable, as the listing strategy is quite popular, and many investors begin actively buying new coins immediately after they appear on the exchange. Afterward, interest wanes, and players dump dubious assets.
I personally don't use a similar strategy due to the high risk of crypto exchanges going bankrupt, which could result in not only no profit, but also the complete loss of all funds in the account.
In my opinion, it is less risky to make transactions through regular brokerage companies - https://time-forex.com/kriptovaluty/brokery-kriptovalut
