HOW TO CAPTURE A HUGE PROFIT ON BINANCE OR COINBASE’S NEW COIN LISTING

Have you ever wondered how to capture a big profit on Binance or Coinbase’s new coin listing? Likely you have, right?

Okay, before I will let the milk slip, I would like to state this. I am not trying to reveal to you the secret magic wand to be used to predict the price of cryptocurrencies.

The indices used in predicting whether the price of cryptocurrencies will tank, or surge, are vague.

If you are conversant with most of the cryptocurrencies, price prediction websites, or YouTube channels that predict the price of cryptocurrencies.

You would have noticed that 85% of the price prediction doesn’t play out. Cryptocurrencies price is unpredictable, is a fact.

But, when any of the top tier Exchanges: Kucoin, Binance and Coinbase, list a coin, possibly the coin will record more than a +30% price increase.

This is an observable event it usually happens during coin listing; the coin price will increase and decrease with extreme volatility and momentum.

In this article, we will discuss some factors and strategies you will use to beat the extreme volatility and momentum to capture a big profit whenever any of the exchanges list a coin on their platform.

First, we will discuss the factors that influence how the price of cryptocurrencies behaves when list on an exchange.

Using these factors, you will make an informed decision whether to invest in the coin.

Then we will discuss the strategy you will use to capture a sizeable profit whenever an exchange list coin is on their platform.

What factors affect the price of cryptocurrency?

Here are the four factors that influence the price behaviour of newly listed coins.

Dollar Value of a coin:

To buttress, I will use GENO and C98 listing in Binance as a case study.

The dollar value of a coin; implies the value of the coin in terms of dollars.

For instance, as of the time of writing this article, the dollar value of C98 is $4.689, while GENO is $300.50.

Primarily within the cryptocurrency ecosystem, we can classify an asset as overpriced and undervalued based on its dollar value compared to its market capitalization and adoption.

If a coin has sizable market capitalization and widespread adoption, but its Dollar value is between the boundary of $1 and a Cent, we say the coin to be undervalued.

If the price is above 20 dollars compared to how big its market capitalization is, we say the coin to be overpriced.

The catch is; undervalued coins perform better during listing than overpriced coins because it is appealing to investors.

The reason is that the larger the units filled, the high the profitability.

During Binance listing of C98 on 23rd July 2021 at the price of $0.075.

Within intervals of hours, the price of the coin surged to $3.000, recording a +3900% increase.

But when Binance list GNO on 30th August 2021 at the price of $294.9, the coin surged to $418.0, recording a +41.743% price increase.

If you compare the price gain with that of C98, the margin is a wide path.

Also, we can see the same thing played out with FLOW and WAXP.

They listed WAXP at the price of $0.1852, and the price surged to $0.6120, recording a +230.45% price increase.

They listed FLOW at the price of $18.31 and the price surged to $35.61, recording a +94.48% increase.

If you checked across the board, it is the same result.

Perhaps informed investors will prefer to invest in the undervalued coins because they promise a high return on investment, unlike the overvalued coins.

If the investors have like $100 to invest, catching 25% of WAXP will reward the investor more than catching a 25% increase of FLOW.

Assuming the investor entered the trade when the coin has already recorded a +30.80% increase, the price will be $0.2315.

The $100 investing will give him 431.96 units filled.

While the same investment in FLOW will only give him 4.28 units filled.

If the investor sold each at a 25% increase:

WAXP will give him/her $150 ROI, while FLOW will net $122.44

Listing awareness:

Another factor that influences the price of a coin is listing awareness.

If more people are aware of the coin listing, there’s a splendid chance that the coin will perform exceptionally well because more people will invest in the coin.

This will increase the trading volume.

Any time there’s an increase in the trading volume, the price will be extreme volatility.

Trading Volume:

This is a factor of liquidity. When trading volume increases, the coin becomes more liquid.

Circulating Supply:

If the circulating supply of the coin is small and the trading volume increases, there’s a greater chance that the price will increase drastically.

What plays out here is simply the economics of scarcity and demand.

Now, let’s discuss the strategy you can use to capture a sizeable profit without being trapped in the trade.

First Step:

The first thing you need to do is reserve capital for this purpose.

You don’t need to have huge trading capital to create a special fund for trading coin listing.

Just allocate 30 per cent of your trading capital. Then grow the fund as you trade new coin listings.

Step Two:

Create a list of coins that Binance might likely list. To do this is very simple; all you need is to use Coinmarket cap to do your search

Step three:

To create the list.

Here are the criteria; look for coins that have a sizable market capitalization.

Then check if any of the 2nd tier Asian Exchanges like Gate.io or Kucoin have already listed the coins.

Step four:

If you study coin listing patterns’ you discover that first, 2nd tier Asian centralized exchanges will list the coin after ICO.

When the coin market capitalization hit a threshold, then Binance will list it. After, Binance lists the coin. Coinbase will then follow through.

Step five:

Join Binance Announcement Telegram Channel.

Binance will announce a coin listing at least six hours before the listing.

This time-lapse gives you ample time to buy the coin.

Before, it will start pumping. By doing so, you will buy it at a good price.

This is better than jumping into the coin when it has already been listed on Binance.

Step Six:

Depending on your risk tolerance, you can decide to sell the coin at a +30% or a +25% increase.

I normally sell at a +25% increase, especially if I got the listing alert three hours before the listing time.

Before buying the Coin I will check the chart to see how far the Coin has performed.

If the Coin is still between 15% to 25% increase, I will buy the Coin then set the Coin to sell at a +25% increase.

This gives me a reasonable amount of profit and it is safer because I won’t be trapped in the market.

One more thing, I have a Telegram group where I call free trade signals daily.

To join the group, click on this link: www.t.me/mrchino_inc

Meanwhile, if you would like to learn more about cryptocurrency and investment, at Mrchino Club Academy, we offer Advance Masterclass on crypto investment and trading.

The Masterclass is a comprehensive online-based course that teaches you everything you need to know about cryptocurrency from Beginner to Advance if you would like to enroll Click Here

I’m a geek at www.mrchino.club, I enjoy writing about Personal finance and Investment, Supply Chain Management, Design Thinking and Innovation, Retailing.