What are the largest startups today? They happen to be the blockchain and crypto startups. The industry growth rate is akin to the early internet startup back in the 90s. This is an indication that more people are using cryptocurrency in their daily life, and as a result the number of projects starting their own cryptocurrency offering have only increased.
If you’re considering listing your cryptocurrency, then CoinMarketCap is probably the number one place you’d like to start with, and you aren’t alone. Many cryptocurrency-related entrepreneurs dream of listing their coins on CoinMarketCap. However, it isn’t as straightforward as one may think. If you happen to read CoinMarketCap’s listings-criteria you’ll realize just how many hurdles are put in place to make it hard for crypto startups. How best to tackle these hurdles put in place? Let us find out below!
First let’s start with how to make a coin because with the increasing popularity of blockchains and technological advances, making a currency of your own is simple enough. The tough part is getting it priced and listed anywhere. If you’re not an expert, you’d typically have to seek out help from a developer familiar with blockchains, which isn’t easy to do. However, with the ERC-20 standard or Binance protocol coin creation is getting easier. Help can even be hired from Fivver! But the most important decision you’ll need to make is whether you should put your token onto a third-party exchange or build an exchange of your own with your new coin on there.
No matter how decentralized or centralized, listing your coin on an exchange is the sole method for thousands of crypto enthusiasts to find new tokens, and discover other crypto offerings. If you’re having difficulty listing your cryptocurrency with third-party centralized exchanges, you can simply create your own and set up your own coins, on your own exchange, by simply using a range of open-source exchange tools and free alternatives like HollaEx. These crypto tools allow users to build a crypto site with their own currency in a short time. This inevitably means there is a higher chance you’ll get listed on CoinMarketCap because the more exchanges your coin is on the better.
But let’s first examine the advantages and drawbacks of listing your business on a third-party exchange and then focus on the DIY open market.
Advantages And Disadvantages Of Listing On Third-Party Exchanges
Third-party exchanges or centralized exchanges, make up the majority of the total cryptocurrency transactions. The newest and most wealthy cryptocurrency pioneers want to get their crypto listed on the most popular exchanges, such as Coinbase, Binance, Huobi and many more. But, for most it is infeasible to list their cryptocurrency on third-party exchanges due to the high listing costs.
For those that can afford the listing costs, the benefit of potentially sharing your token to millions of people is obviously the biggest benefit. If you’re going down this road, be mindful that the screening process can be long and doesn’t guarantee an audience or a listing on CoinMarketCap.
Another big downside along with the cost and long processes, is the lack of control over your token following the listing. Additionally, the majority of third-party exchanges won’t assist you in marketing your newly listed token.
The main con for startups is simply the exorbitant listing cost. Luckily, there is a smarter, low cost solution. Read on below to find out!
What Are The Pros And Cons Of Listing On Your Own Exchange With A White-Label?
Suppose you start your own exchange and list your coins that way, is this a feasible idea? In most cases, this would be too complicated of a procedure and rife with risk. The expense in build costs alone makes it a non-starter for most startups. But what if you didn’t have to build your crypto exchange from scratch?
With a little research online there are established white-label exchange solutions available that make starting your own exchange as easy as creating a website and works like WordPress or a WIX site builder. It doesn’t even require technical expertise. Crypto tools kits are simple enough to use online and there are even free open-source solutions with solutions like Uniswap or Bisq (decentralized) or even centralized solutions like HollaEx that make coin listing straight forward.
If you use the open solutions it can be more affordable than listing through a third-party exchange. Tools such like HollaEx offer the complete package, with various options that allow builders their own customized crypto site and includes inbuilt features for your users to trade. Once you’ve set up your exchange, you’ll be able to host the platform locally or get help with the hosting through a cloud exchange solution.
The most significant drawback of any white-label software is the market-making for new coin markets. Because new coins won’t have a market it can be challenging for beginners. However, if you are establishing a market for BTC or ETH it can be easier as some white-label solutions will include these free.
In conclusion, operating an exchange can be a better alternative to listing on a third-party platform and can pay off dividends overtime.
Aspects To Take Into Account When Starting An Exchange
Points to remember when starting your own exchange:
- Do your research and test—actually try the exchange software yourself.
- Be sure the assets you plan to add are in a simple format like ERC-20. Alternatively, you can utilize similar blockchain formats like the BEP-20 or the TRC-20 format.
- Choose a strategy for marketing. Think if an orderbook market (dynamic pricing) is required vs a simpler broker style market (less dynamic pricing). Your target markets could be drastically different based on this alone.
- Find out about sustainability. Are you capable of paying for critical features? Or should you operate on a simpler streamlined model and cut the fat.
To conclude, you must first list on an exchange before even considering getting on CoinMarketCap. It’s hard. But not impossible, especially when utilizing an exchange kit.
Once your coin is trading on a number of exchanges only then should you consider applying for the CoinMarketCap listing. Before that will be a waste of time and even reduce your chances in the future. By getting listed on your own platform and/or others, will you garner trust, and in turn increase your chances of getting listed on CoinMarketCap. Ultimately, visibility is the ultimate goal and getting found online in the Google search should be the aim.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.