For projects on the digital asset market, being listed with good exchanges or trading platforms brings liquidity and recognition. An exchange with decent reputation could be a real value-add to cryptocurrencies it list. Therefore, after an official listing announcement is released, the price change acts as an indicator which reflects the market impact of that platform.
1. Phenomenal Performance of “CoinBase Effect”
When it comes to the effect of listing announcement, CoinBase’s announcement of Bitcoin Cash on Dec. 20, 2017, served as an example. At that time, right after Coinbase announced the listing of BCH, the price was almost doubled within 24 hours from $2,240 to $4,330. This impressive rise spoke for the market’s recognition of CoinBase back then.
|Exchange||Currency released||Date of release||Content||Biggest increase|
|CoinBase||ETC||Jun. 11, 2018||Online soon||28%|
|CoinBase||ETC||Aug. 7, 2018||Open trading||21%|
Fig. “CoinBase Effect” on ETC Listing
However, while the market went downwards, CoinBaselowered its standards of listing projects and showed a tendency to prioritize quantity before quality. The“CoinBase Effect” became weaker. Take XRP and XLM that were recently listed on Coinbase as examples:
|Exchange||Currency released||Date of release||Biggest increase|
|CoinBase||XRP||Feb. 27, 2019||10%|
|CoinBase||XLM||Mar. 14, 2019||11%|
Fig. “CoinBase Effect” on XRP and XLM Listing
2. “Kimchi Premium”
Listing announcements by Korean exchanges can also have a positive impact on token prices, as shown by the so-called “Kimchi Premium”. Because of the great enthusiasm of Korean people in digital asset trading, the price of one cryptocurrency on Korean exchanges could be much higher than the global average. Thanks to the “Kimchi Premium”, official announcements by the two leading Korean exchanges, Bithumb and UPbit, may lead to recognizable price rise; and thus, many projects make very strong efforts to be listed with those two exchanges.
|Exchange||Currency online||Date of release||Biggest increase|
|Bithumb||GXC||Mar. 21, 2019||25%|
|Bithumb||NPXS||Feb. 28, 2019||22%|
|Bithumb||HDAC||Feb. 28, 2019||80%|
|UPbit||ENJ||Mar. 18, 2019||37%|
|UPbit||CTXC||Feb. 14, 2019||20%|
Fig. “Kimchi Premium” Effect of UPbi
3. “New Price Driver” from Asia – BitMax.io [BTMX.com]
The driving power of the token price is not an exclusive “patent” to long-existing head exchanges. Listing announcement by a newly established trading platform with a comprehensive set of products and service, industry-leading technical support, and highly-active globalized community can also have a positive influence on the project token price. One example is BitMax.io [BTMX.com].
In a recent survey on Twitter by influencer Rebecca, BitMax.io beat Huobi and UPbit and won the first place, when people were asked on which exchange they would prefer Uranus to be primarily listed.
This “Driving Force” of BitMax.io listing announcement is proved by three projects that were recently listed: Fantom, Aergo and Fetch. After the announcements were released, the prices of all three projects rose significantly.
|Exchange||Currency released||Date of release||Biggest increase|
|BitMax.io||AERGO||Mar. 17, 2019||20%|
|BitMax.io||FTM||Mar. 12, 2019||26%|
|BitMax.io||FET||Mar. 17, 2019||16%|
Fig. “Driving Force” on Fetch [FET] Price by BitMax.io Listing Announcement
The founder of BitMax.io indicated that the team has been talking and exploring a possible partnership with at least 20 projects at this moment. To some projects, even talking with BitMax can lead to a price rise. The users forward to see that BitMax adheres to its commitment to listing only industry top-quality projects and maintains its positive impacts for more and more listing partners.
Industry player Fumgo gives 5 tips on how to trade cryptocurrencies
Look, you could have bought one bitcoin in April for $4,000 and sold it today for $8,000.
It sounds like an easy way to earn money, right? The crypto trading, however, isn’t that simple. In fact, the always-changing price, high stakes, and online scams make it also dangerous for those who know little about it.
So when you take risks for rich rewards, make sure to follow these tips:
1. Use reputable exchanges
To trade cryptocurrencies, you go to exchanges, internet platforms that help buyers and sellers meet.
But high market demand brought in a number of phony exchanges. You must keep an eye out for them and make sure you use only reputable ones like Bittrex, Huobi Global, OKEx, HitBTC, or Binance.
There are also trading terminals like Fumgo. The terminals let you trade across multiple exchanges — including the ones mentioned above — from one interface. In fact, it’s even safer to use them, because they offer two-factor authentication when you log in, unlike exchangers.
2. Learn from professionals
Crypto trading is a job. You need to monitor the price movements and make decisions. This is hard to do without knowledge about the market.
Find real traders and learn from them. Some of them post videos on YouTube.com, others publish articles. It takes time, but it’s well worth it.
At this stage, beware of scammers who have never traded cryptocurrencies but promise to teach the craft. The internet is full of free tips, but these “experts” sell them as professional knowledge.
There’s a way to shortcut the learning curve: the Fumgo terminal has a feature that allows mirroring the traders. If you switch it on, it will make your account copy the actions of chosen professionals automatically. The system verifies them — only true pros allowed.
3. Practice with small sums of money
Seen enough and feel confident? Then it’s time to practice. But don’t rush, start with small investments.
The cryptocurrencies rates change unpredictably, so invest the amount of money that you wouldn’t regret losing. Practice as much as possible this way and when you manage to earn regularly, raise the stakes.
4. Stick with one strategy
Every trader has their own style. Copy one and stick with it for some time, see how it goes. If you change your strategy too frequently, you won’t be able to see the result.
Three tricks are universal, however: 1) make a limited amount of transactions per day to approach trading energized; 2) pay attention to Bitcoin, its price influences other currencies; 3) keep statistics on your transactions to understand what strategies work best.
For the latter, there’s a shortcut, too. The Fumgo terminal tracks your stats automatically and shows the history of all the transactions.
5. Trade different currencies
Bitcoin isn’t the only cryptocurrency worth attention.
The price for Monero, for example, has been changing constantly from $10 in 2017 to $100 today. At some point, it even cost $500. The same with Dash and Ethereum.
Pro traders usually devote only 5–30 percent of their capital to one cryptocurrency. Follow suit.
The easiest way to keep track of your cryptocurrencies is via terminals: in one interface, you can compare the rates of your cryptocurrencies across various exchanges and sell each where it’s most profitable. Terminals usually have subscription models: Fumgo, for example, costs $20 a month but offers a trial week and two free months for subscribers.