How to buy coins before the official listing

In the world of cryptocurrencies, pre-market trading is a service that refers to the over-the-counter trading system and is designed to buy and sell new tokens before their official listing.

Thanks to pre-market trading capabilities, buyers and sellers can bid and trade at prices they are interested in before the tokens are listed. Pre-market buyers and sellers determine pre-market transaction prices; They may offer a different price than the tokens once listed.

This type of trading is very similar to the barter procedure. Let’s say someone comes to the rental office looking to borrow a car. But it has already closed. Luckily another person decided to return his car and went to the office after closing. Thus, the first person who is late can borrow a car directly from the second.

However, while pre-market trading reflects market expectations, the price of a token when listed will depend on a variety of factors and may not reflect the pre-market price. Both prices are ultimately determined solely by the market.

Why does the crypto community need pre-market trading?

Pre-market trading allows investors to buy or sell cryptocurrency before its official launch for trading on exchanges. Sellers and buyers create orders and submit offers. All transactions are made via Tether (USDT).

Traders can act as makers by creating orders with predetermined quotes or act as takers by accepting corresponding active orders on the platform. Buyers and sellers must use assets as collateral to ensure timely payment. The deposit will be refunded after successful and timely payment. All transactions are made in USDT.

Pre-marketing on traditional and cryptocurrency exchanges. Difference

In a traditional market, premarket is traded before official trading hours. It usually occurs in the early morning hours, before the opening of stock markets such as NYSE and NASDAQ.

However, as cryptocurrency markets operate non-stop, the term “pre-marketing” has taken on a different meaning. Crypto premarkets are platforms where investors can trade tokens before they are officially launched or widely distributed.

As a rule, traders use such premarketing to speculate on the value of the cryptocurrency. They will place orders based on the projected value of the tokens after launch.

Traders can interpret price movements outside normal trading hours and evaluate potential trends and market momentum for the upcoming trading session.

Which exchanges offer pre-market trading services?

Over the past few months, many major cryptocurrency exchanges, including Binance, KuCoin, Bitget, and others, have launched pre-market trading services.

Users can gain early access to investment opportunities and start trading various tokens before their official listing. Some of the most popular projects of recent months include Notcoin (NOT) and Hamster Kombat (HMSTR).

However, stock exchange representatives warn that pre-market trading carries significant risks, so it is very important to carefully analyze the market and be prepared for possible surprises.

What do traders say

Many traders perceive pre-market trading as an excellent opportunity to create orders to buy or sell tokens before they are listed. Traders surveyed in the crypto exchange community have different evaluations of pre-market trading, but they agree on the usefulness of such a tool for cryptocurrency markets.

Therefore, one of the users of the Binance cryptocurrency exchange, in a conversation with crypto.news, stated that although this instrument has some risks, the possibility of pre-market trading opens up new trading opportunities for him.

“I can now buy the most popular tokens before they are officially released on exchanges. “Although I take more risks compared to regular spot trading, if the tokens are listed, I have a better chance of making money than those who enter the project after official trading begins on exchanges.”

Binance investor

Another user of the KuCoin platform also states that he has not yet understood all the advantages of pre-market trading since investing in the new HMSTR token. At the same time, he reminded that if there is a delay in listing, as a rule, token delivery may also be delayed.

“I understand that the executed orders remain valid and the exchange representatives will announce a new payment time later. However, how long I will wait to receive the tokens is still being determined. “No project guarantees listing on a particular exchange, so investors always take some risk.”

KuCoin trader Should you try pre-market trading?

Investors need to consider risks when investing in a particular asset. No matter how promising the project looks, no one can guarantee the profit, or sometimes the safety of invested funds.

Therefore, before opting for pre-market trading, the trader should be aware of risks such as limited liquidity, significant bid/ask spreads and unpredictability of prices.