Coinbase announced today that one of its biggest customer demands is that they add more digital assets to their offerings. Being one of the most trusted exchanges, the issue with them has always been that they do not offer enough digital assets to trade on their platform, offering only five. Coinbase, however, is also fully complaint with laws and regulations and only lists coins that are also just that, which may shrink down the pool of valid coins. They announced a new process recently where they will evaluate coins on a jurisdiction by jurisdiction basis that should allow them to list more digital assets that people want. Coinbase, if they find that your cryptocurrency is legitimate, will not ask for a large listing fee like other centralized exchanges which removes a hurdle for many coins. I think this will lead to at least 40 digital assets to be listed on coinbase by the end of the year and may impact the overall market in a positive way.
Coinbase may list 5 new currencies
Coinbase has announced that it is thinking about listing these five currencies on their exchange:
Basic Attention Token(BAT)
Even though coinbase is not the largest exchange by volume, it is one of the most trusted as it does have FDIC insured USD accounts of up to $250,000(like most banks) and since it does not list many coins, those it does list often see a large uptick in volume and price.
What happens with coins when they first get listed?
Exchange listings are often big events for coins so lets take a look at what happens when coins first get listed on an exchange. We will look at two exchanges in particular, one big and one small because they act in different ways and there will be some strategy as to what you can do to make money when they get listed. The two exchanges we are going to look at are going to be Binance and Coinexchange.io, both of which are on the sidebar.
For Binance, if a coin is not already listed at OKex or another Tier 1 or Tier 2 exchange(volume of exchange above $150,000,000 a day), the price will usually spike within the first few hours of it being listed and then drop back down close to its original price. You can see this with Bytecoin which recently got listed. It went from 1.2 cents to 3 cents shortly after being listed and then has now dropped back to 1.4 cents now. NCash is another example. It hit 450 Satoshi at listing and then dropped back to 200 Satoshi a few days after the listing. A good strategy if you already hold the coin before the Binance listing is to sell the coin immediately after it spikes and then buy back in a day or two later after it has cooled off.
For coinexchange.io, if the coin is not listed anywhere else, it has a good chance of just being a crap coin that the developer in trying to sell to get some cash so after it gets listed, it will start at a high price but then immediately drop down to a much lower price(like 2% of its originally price). What I sometimes do here is set a buy order at 1.5% of the originally first listed price and see if I get the buy in. If I buy in within the first day, I then set a sell price of 2x to 3x my buy-in price and gain 200%-300% returns. I usually never hold on to it for more than a day or a day and a half and if I don’t get my 200-300% returns, I settle for 20-50% returns and just sell off as those kinds of coins generally have no future.
Once again, this is not professional financial advice and I am not a financial adviser, these are just my opinions and what I do in these kinds of situations.