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Before the crypto becomes available for purchase and sale, it is analyzed. The selection procedure is mandatory, otherwise the coin cannot enter the exchange and be used for trading . Such selection on cryptocurrency exchanges is called listing.
What is a cryptocurrency listing
Cryptocurrency listing is the process of checking, selecting and adding cryptocurrencies to the list of assets available for trading. As soon as the coin has passed the analysis and got into the list, it can be used for trading , it gets into the list of quotes. Adding a digital asset to an exchange listing is one of the recognition factors and promotional tools in a rapidly developing market. There is a relationship between the popularity of a coin and the number of trading platforms it has been listed on.
Cryptocurrency listing stages
In most cases, the initiator of the listing is the company that developed the coin. Sometimes exchanges initiate the procedure if they want to add a coin that is popular among traders to their list.
The rules for adding a crypt depend on the trading platform, its scale and popularity among users. Each exchange and platform itself sets the listing order and determines the requirements that the coin must meet. A cryptocurrency listing calendar is published in the public domain , where users can follow updates.
Stages of listing a new cryptocurrency :
Filling out the questionnaire (all data about the crypt are indicated).
Analysis of the profitability and liquidity of the coin. Based on the results of the analysis, the specialists of the trading platform make a decision to add a coin to the list.
Conclusion of an agreement between the exchange and the developer of a digital asset.
When deciding whether to add a cryptocurrency to the trading platform or not, the exchange pays attention to the cost, functionality, security of the coin, as well as the reputation of the developer, his history and the success of other projects, if any. Sometimes there are even polls among professional traders who vote for or against adding a coin to the trading floor.
Advantages and disadvantages
Adding a digital currency to the listing of a popular exchange is a guarantee of the safety of the asset and high chances of earning. The reliability and liquidity of the coin is confirmed by experts, therefore, they invest in such assets much more often, and the amount of investments is greater than investments in assets that have not passed the listing.
Benefits of listing a cryptocurrency on Binance or another popular exchange for a developer:
increasing the attractiveness of the coin among investors and traders;
improving the prospects for further development and scaling of the project;
increasing user confidence in the asset and the company itself;
expansion of the community of owners and users of the coin;
increase in the sphere of influence of the developer company.
Cryptocurrency listing developers earn reputation and get new customers. It has no drawbacks, except for the complexity of the procedure, the time required to complete it, as well as the commission for analyzing the coin, which is paid by the developer. You can follow the announcements of the listing of cryptocurrencies in the near future on exchanges on the CoinMarketCal service .
Important! After an asset is listed on a large and popular exchange, any changes in the company’s policy quickly, sometimes significantly, affect the course.
Delisting : why a coin can be removed from the list of assets
If a coin is included in the list of trading assets on the exchange, this does not mean that it will remain there forever. There is a reverse procedure, it is called delisting – removing an asset from the list. The exchange itself, as well as the crypto developer, can remove the coin from the list of assets if it decides to suspend or close the project.
Common reasons for delisting :
the cryptocurrency no longer complies with the rules of the exchange;
over a long period, the exchange rate of the coin has not increased;
the developer has abandoned the project, is not engaged in its development and promotion;
the coin has no demand among traders;
a large number of user complaints about the asset or the company that developed the coin.
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