The choice of the best exchange for listing a crypto project in 2021
What is needed to apply for the listing a crypto project? There are two alternatives for it: to do everything via the promotion agency and to do it independently. The second variant is challenging enough as there are many pitfalls on the way.
Why listing is needed
- For profit
The projects need to get listed to be able to trade a token. The platform should have enough visitors and liquidity to create demand. It gives the token the chance to succeed.
- For expansion into a new market
The token is listed on an exchange to expand into a new market. The listing on an Asian market has a huge potential, for instance, especially when the company plans to go global. With a goal to become popular on the domestic market, the crypto company should just select the appropriate platform for that. The popularity is achieved not only through listing. But listing helps to increase visibility and make traders notice the altcoin or token. This is good for establishing a presence in a certain market.
- For a better reputation
The expansion helps to find new partnerships and attain a better success of token sales. The factor of the exchange reputation plays a big role. If the token of your network is listed on some famous exchange, your company will be associated with a market leader. It gives the company additional scores but it refers more to the status than to the financial prosperity. However, this status gives much: new partnerships, fame and better visibility.
- To strengthen the community
The members of the community perceive such events favorably. It helps to increase their loyalty as the platform looks more reliable when it is listed on the global largest exchange.
What is the Binance effect
The factor of cryptocurrency listing affects the digital market much. If a famous trading platform lists the coin, it proves its reliability. The trading platforms prefer to avoid untrustworthy digital assets as the failure of a coin tells on the reputation of a facility. Therefore, its experts thoroughly test and audit the company prior to listing. At the same time, the fact of listing can increase the cost of the digital asset listed on the exchange. For instance, there is such a phenomenon as ‘Binance effect’. When the information appears that the asset is going to be listed on Binance, its popularity grows. The price jumps considerably. For instance, when Origin Protocol was listed on Binance in January 2020, the price of its token OGN was 0.12 USD. The announcement spiked in price that reached 0.21 USD after the data leaked online. The OGN token was up 100% a month later after the listing.
The same effect is noticed in all cryptocurrencies on the day of the Binance listing. The average profit potential from listings on the famous exchange is 109%. Those who purchase coins before and after the listing, can increase their profits twice. The boost in the price occurs because the exchange proves the credibility of the asset. The price grows as the digital asset improves its availability. It is listed on one of the largest trading floors, consequently, it is not difficult to buy them.
The factors to pay attention to when you select the exchange for listing a crypto project:
The company wants to sell its tokens therefore the platform with high liquidity is needed.
Average trading volume is one of the parameters you should consider when selecting the exchange. There can be one pitfall here though. Some exchanges provide fake trading volume figures and it can be hard to tell truth from a lie. Working with a marketing agency can help you avoid such a mistake.
The assortment of traded tokens is another factor to be considered. The quantity and quality are two different things therefore looking at the list offered on the exchange, decide if the list is extensive enough and the tokens listed there are worthy.
Reputation can’t be neglected when you list your token on the exchange. It’s worth distinguishing platforms using black PR for promotion. A spoiled reputation can affect your image as well.
The geographical position plays a big role. It all depends upon the marketing strategy you will follow. Are you going to expand internationally? Or your target audience is the local market? Those who want to promote globally should select a famous exchange for the listing.
The community is one of the factors to regard when you try to assess the trading volume of the exchange. If it’s active and the chat is full of people, it means that this trading floor is live. If the chat is crowded it can be divided geographically, and this is a very good sign that shows a live environment.