How Token Listing On Exchange Impacts Coin Accessibility

How Token Listing On Exchange Impacts Coin Accessibility

cryptocurrency to usdFor some time now, many people were not so sure whether it was possible to trade ICOs on an exchange; and if they knew at all it was possible for these tokens to be traded on exchanges, others were not certain of how to go about doing so. Token listing on exchange is a crucial step after a successful ICO. And if you’re one of those people wondering about regulations, then know that you’re not alone; the ICO sector still remains largely unregulated but even with that, listed tokens fall under the regulatory framework of the respective exchange.

This, therefore, means that once an ICO token gets listed on a regulated exchange, they fall under a certain section of the law.

In this post, I will show you how exchanges are used to trade ICO tokens, a few top ICO exchanges, and how to convert your cryptocurrency to USD after trading on an exchange.

Let’s begin!

How Exchanges are Used to Trade ICO Tokens

Assuming an ICO has completed all stages—white paper creation, fundraising, and closing with the required amount—it’s considered successful. But what happens next? How are the tokens traded?

After the ICO closes, the token needs to be listed on an exchange. Each exchange has listing requirements, typically including the coin name, symbol, price, and quantity. Once approved, the token gets listed, and trading begins.

Like Bitcoin or Ethereum, ICO tokens are traded by their names and paired with other cryptocurrencies, such as BTC or ETH. For example, a token named VIC could be traded as BTC/VIC or ETH/VIC.

Most exchanges only allow trading pairs with Bitcoin or Ethereum. Listing isn’t guaranteed immediately after an ICO closes; it depends on meeting exchange requirements, which may take days. During this time, investors hold their tokens, with prices fluctuating. Token prices can spike or drop suddenly once listed. It’s wise to use exchanges with features like “stop loss” orders to manage risks.

Trading digital assets involves uncertainty, so thorough research and choosing the right platform are essential. Next, we’ll explore some good ICO token trading platforms.

Top Token Trading Exchanges

We tried as much as possible to list some of the most credible exchanges; below are three of our best picks:

1. KuCoin

KuCoin is one of the oldest exchanges in the cryptocurrency space; founded in 2011 in Hong Kong, it is

KuCoin
Image source: https://www.kucoin.com/

home to more than 210 digital assets, including tokens and cryptos.

But despite being founded nearly 8 years ago, it only opened its doors four years later (in 2015) with an aim of becoming the most preferred exchange for trading digital assets.

KuCoin provides for an easy token listing procedure for new assets; all you have to do is follow the prompted steps and get your coin listed.

KuCoin may not be the best exchange out there but it currently ranks as one of the most diverse trading platforms of all times; but then, what can be more appealing to a trader than a variety of trading pairs to choose from? Also, this means that there will be increased asset liquidity.

You’ll also be happy to know that KuCoin ran one of the most successful ICOs leading to a distribution of 100 million tokens.

2. Binance

Binance passed as one of the world’s largest token trading platforms despite having been around for less than five years.

binance
Source of image: https://www.binance.com/en

The exchange moved its base operations to Japan from China after stringent laws were passed by the Chinese government in relation to cryptos.

Token listing on exchange played a major role in its early expansion. Since then, the platform has grown its market share to a billion dollar one ($1.3 billion to be precise); this opened up new opportunities for new markets, including Europe, which now has a decent and active membership on the platform.

The platform provides one of the best tools for trading tokens by having successfully distributed 200 million of its own. Just like KuCoin, Binance offers a wide range of trading pairs for the listed tokens to ensure that its user base enjoys a diverse asset listing.

If you’re looking for a mix of variety and affordability of trading fees, then this might be a great platform to consider trading on.

3. Cryptopia

This is another popular cryptocurrency trading platform with its headquarters in New Zealand.

Token listing on exchange
Source of image: https://www.cryptopia.co.nz/

And if you thought you had seen ‘variety’ with the first two exchanges, then wai; more than 400 coins are listed on the Cryptopia platform.

Cryptopia has an easy-to-use platform to improve your trading experience; in addition, converting your digital assets into fiat currency is also provided for.

As mentioned earlier, the platform offers a variety of listed tokens, including its own—called the CEFS token. These tokens are known to be quite pricey, but for a good reason. Besides trading, they generate regular dividends for holders. At the time of writing, CEFS token owners receive a periodic dividend equal to 4.5% of Cryptopia’s revenue. Impressive, right?

That notwithstanding, there are numerous other tokens to choose from on the platform.

If you’ve traded your tokens, congratulations; you’re officially a token trader!

But do you know how to exchange cryptocurrency for USD? Or rather, how to sell cryptocurrency in exchange for a fiat currency?

In this next section of this post on how to trade ICO tokens, you will learn how to convert cryptocurrency to USD.

How to Exchange Your Tokens for USD

The first step in converting your altcoins or ICO tokens to USD is choosing a platform that supports fiat currencies. Unlike cryptocurrencies, most tokens can’t be directly converted to fiat. If your current exchange doesn’t support this, you may need a second one to complete the process.

Only a few tokens can be exchanged for fiat currencies. The exact process varies between exchanges. Here’s what you can generally expect when converting tokens to USD:

Identify a fiat-supporting exchange

Like I said earlier, this is a crucial detail in the entire process. Before signing up on an exchange, make sure its supported currencies align with your trading goals. For example, if you want to convert your digital assets back to USD, choose an exchange that allows this. Fortunately, all three exchanges listed above support USD conversions.

Token listing on exchange involves several steps. This ensures smooth trading and easy conversion.

Since tokens cannot be directly traded with fiat currencies, you’ll need to identify a cryptocurrency to use to convert them to USD.

If you prefer using ETH, find a trading pair that includes your token and ETH. For example, if your token is VIC, look for ETH/VIC. This allows you to convert your token into Ethereum.

Exchange your altcoin into USD

Once you’ve converted your tokens into the desired cryptocurrency, you can proceed to select the pair containing the USD and the coin you wish to exchange it with. In our case, the pair would be ETH/USD or vice versa.

Next, we’ll follow the prompted steps on the exchange to convert our cryptocurrency into the USD.

Token listing on exchange is an important milestone in the ICO journey.

Final Thoughts

Token listing on exchange is a crucial step in the ICO process. And that is how you trade ICO tokens on an exchange and lastly have your tokens converted to your preferred fiat currency.

The bottom line is that as much as ICO tokens belong in the altcoin family, they are treated a bit differently when it comes to listing, trading, and withdrawing from exchanges.

If you’re used to trading cryptos, you may need to slow down and first learn how tokens work; they are not so different but any slight difference is all it may take for you to make a costly mistake.

That said, happy token trading!

 

 

 

16 Comments

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