As cryptocurrency is rising in popularity and as more people learn to create their own, it is becoming more difficult to gain access to reputable exchanges. Every new token needs to be listed on an exchange in order to gain popularity and grow. While having online community support is important, it is not enough to keep a token afloat. Tokens need to become tradeable assets in the real world and being listed on an exchange is the best way to do that.
But how exactly does a token get listed on an exchange? In this article, we’ll try to answer that question and more.
What is An Exchange?
If you haven’t dealt with cryptocurrency before, then you’re probably wondering what an exchange is and why you need to get your tokens access to one. A cryptocurrency exchange is a digital platform where users can trade various cryptocurrencies. Think of it as a bustling marketplace where tokens change hands, prices fluctuate, and fortunes are made (or lost). So just as a stock exchange facilitates the trading of company shares, a cryptocurrency exchange serves as the marketplace for digital assets. Here, users can trade one cryptocurrency for another or exchange crypto for fiat currency, that is, your regular USD or EUR.
There are two different types of crypto exchanges. One type is the centralized exchange which is controlled by centralized entities (banks, remittance services, etc.). The other kind is the decentralized exchange which operates on blockchain networks with users trading directly from their wallets.
CoinBase: Leading by Example
Becoming the newest crypto on Coinbase, one of the most prominent cryptocurrency exchanges, involves a thorough process. Coinbase Exchange has a Digital Asset Support Group (DASG) that votes on which assets can be listed. The evaluation process includes rigorous vetting and review, covering legal compliance and technical security. Asset issuers and project teams can apply for listing consideration through Asset Hub, streamlining the process by collecting necessary data. Once listed, assets are subject to continuous monitoring to ensure adherence to standards. So, this means that would-be investors can be sure that any coins they are considering investing in on Coinbase have been thoroughly vetted, although this doesn’t necessarily mean they will grow in value.
Here are some tips and tricks to get your token listed on CoinBase, Binance, Kraken, or any other exchange:
The Importance of a Proven Team
When trying to get your token listed, it is crucial to have a strong team working together to make it happen. The expertise and dedication of a good group, together with their ability to navigate the world of crypto are crucial when trying to nab a spot on the exchange. A proven team matters because of their:
Active Participation
They engage and interact with the community, providing regular updates on the market, addressing any user concerns on time, and always being available for assistance when needed. This is valuable because it breeds loyalty in users and helps in increasing the value of your token. Investors and exchanges are always happy to partner with a dedicated team that caters to clients well, while still providing a quality product.
Transparency
The key reason why consumers are moving towards decentralized currencies is because of the transparency of the system. Everything happens in the open and there is always evidence of transactions having taken place. A transparent team builds on that by being upfront about things themselves. Sharing progress with clients and developmental growth will help build investors’ confidence. A project with clear, transparent communication is more likely to be picked up by an exchange than those who try to keep things under wraps.
Creating a Useful Product
Before listing a new cryptocurrency, exchanges will evaluate just how useful and practical the token is. Create a product that fills a gap in the economy and it will be quite easy to secure an exchange. A useful product is valuable because it has:
Real-World Use
New cryptocurrencies should have the capacity to solve real-world problems and have real-world value. When a token can solve problems or address a specific need, it gains value and exchanges prefer these tokens to those that only have a use online. A good example is gaming tokens that can be exchanged for real-world cash by gamers through NFTs and other such ventures.
Long-Term Value
When a product is useful, it allows for the growth of a token and contributes towards long-term vitality. A token is more attractive when it can remain relevant for a long time, even through shifting markets.
Community Adoption
The usefulness of a product makes it more likely to be adopted by a community. People are drawn to things that can benefit them, especially if the economy is unstable. If your token solves problems and proves to be viable in the long term, it is more likely to draw the attention of communities who are interested in cryptocurrency. The more people using the token, the more value it will gain.
Technical Requirements
For a token to be approved and listed, it has to adhere to certain pre-determined standards. It should adhere to blockchain protocols like ERC-20 or BEP-20. Being compliant puts your token above the rest because exchanges want a token that can be easily integrated. Also, remember to keep it transparent by sharing important information about your tokens such as the market cap, maximum supply, circulating supply, or planned swaps. Prepare technical documentation that is comprehensive to be used by developers and include details about contracts, APIs, or other custom features. Conduct security audits that are thorough for your smart contracts to ensure the very least chance of a breach so that exchanges are confident enough to trust you with user information.
Exchange Check
After your token is checked and ready, it’s time to find an exchange. You can find a suitable one by researching an exchange’s target audience and reputation. You want an exchange that’s trusted by many people and has their money where their mouth is. Once you find a decent exchange, fill out an application adding relevant details and ensuring that you stay transparent the entire time. Be persistent and ensure your community keeps supporting you by taking care of them and keeping them happy.
Conclusion
Creating your own cryptocurrency token is always a good idea provided you’ve considered what uses it will have online, what real-world problems it could solve, and how capable it is of gaining a loyal community. All these things contribute to your token’s vitality and are crucial to investors and exchanges – both of which are necessary to become a listed, legally viable cryptocurrency.
