Pre-market cryptocurrency earnings: why it's not a 100% guarantee of profit

For some reason, it's generally accepted that almost all cryptocurrencies are rapidly increasing in price, so it's advisable to be one of the first to buy a new coin.

But I already described how easy it is to lose money on the cryptocurrency listing in my previous article - https://time-forex.com/kriptovaluty/cryptocurrency-listing

Not all cryptocurrencies rise in price immediately after listing, and even if they do, it's technically difficult to buy crypto at the best price.

For this reason, buying cryptocurrency before it officially goes public, known as the Premarket, is becoming increasingly popular among investors.

Most bloggers claim that buying a new cryptocurrency before its release is a 100% chance of making big money, since after trading begins, the new coin can increase in price tenfold or even a hundredfold.

But in reality, it's quite difficult to earn more than 90% on such an operation. So what about all those thousands of percent?

The secret is that during a pre-sale, you don't actually buy cryptocurrency; you merely declare your intention to buy it. Funds equal to the amount of your intended purchase are blocked in your wallet, and the same happens to the seller's wallet.

This means you'll receive new coins only after the trading starts. The seller has two hours to transfer them. If they don't, you'll receive compensation equal to 90% of the transaction amount. (Pre-market conditions on the Bitget ).

As a result, an interesting situation arises: the bidding begins, and the seller sees that the price has increased by 500% compared to the pre-sale price. He refuses the deal and pays a penalty of 100%.

And then he sells his coins, but at a more favorable market price and earns 500%.

If, however, the price drops after the start of trading, as happened with the last listing of the MERL coin, which at the pre-sale price was worth $1.65-1.75 per coin, and an hour after entering the exchange, it became worth $1.40.

It is clear that the sellers saw that the exchange price was lower than the pre-sale price and were happy to fulfill their obligations to the buyers.

In such a situation, the only option is to hope that the cryptocurrency purchased beforehand will rise in price for some reason, or sell it at a loss. Forget about making fabulous profits on the new cryptocurrency.

Earn money by speculating with cryptocurrency - https://time-forex.com/kriptovaluty/brokery-kriptovalut