Pre-Market and How it works

Greetings dear friends,
It's weekend here in Nigeria and I'm free so I decided to make a little research and then present something that will interest most of us here today. It is true that nothing is truly new but if you see anything for the first time it means that thing is new to you.

I have been on the crypto space since 2020 but there are alot of things I'm getting to learn just recently and one of these things is the topic I wish to share with you all today which is Pre-Market and How it works.

What is Pre-Market

I guess many of you may have heard or possibly know how this work but I still believe that a lot of persons have no idea as to how it works and that is the reason I want to throw more light on it today or possibly educate as many who are willing to learn about it.

Recently I went completely into different airdrop projects after the NOT coin project on TON blockchain that changed a lot of peoples life. So going into airdrop I decided to make some research since I have a WhatsApp community where users also depend on me for most of the ongoing information about the various projects.

During my research I came across the term Pre-Market and I decided to study it and know how it works. I noticed that a lot of token before their official launching, they do what is called pre market sell and buy where real traders buy and sell the said asset even before they are officially launched. Isn't that amazing?

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Now let's properly see what Pre-Market is all about. In a simple term we can define Pre-Market is a scenario where a buyer and a seller set prices and quota which matches the criteria of the both parties and then they wait for listing for the transaction to be completed.

So here what is involved in such a trade is that you must have enough funds, you must have a collateral and you must also be able to deliver at the agreed time. So no room for any delay once the time set for the trade reaches.

How Pre-Market works for buy and sell order

Let's start with the buy order. The steps below are the steps to follow if you wish to participate in a Pre-Market buy for any asset before it's listing.

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• Go to the exchange where the Pre-Market for the asset is about to hold of course you must have an account with the exchange

• Click on the create order option in the Pre-Market side and the enter the quantity and the price you want to buy and lastly click on confirm order, this must be after adding your collateral.

• Wait for a seller who will match your order i.e the quantity and the price and once that is done then you wait patiently for the listing of the asset in the exchange

• Lastly when the token is listed, the seller is supposed to deliver at the agreed time and you will receive your token but if the seller doesn't deliver, you will be compensated and you collateral will be returned to you.

Similarly, let's look at the sell order. The steps below are the steps to follow if you wish to participate in a Pre-Market sell for any asset before it's listing.

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• Go to the exchange where the Pre-Market for the asset is about to hold of course you must have an account with the exchange

• Click on the create order option in the Pre-Market side and the enter the quantity and the price you want to sell and lastly click on confirm order, this must be after adding your collateral.

• Wait for a buyer who will match your order i.e the quantity and the price and once that is done then you wait patiently for the listing of the asset in the exchange

• Lastly when the token is listed, you are supposed to deliver on time so as to receive the buyer deposit and also doing this will help secure your collateral otherwise you may lose it.

Hamster 🐹 Pre-Market on Kucoin (Example Guide)

To properly know how this works, I will want to show us a Pre-Market which will be taking place on the 25 of this month on the Kucoin exchange. I guess you all know about the Hamster 🐹 Kombat mining, a major tap to earn mining game that is currently trending in Telegram.

If you wish to participate in the Pre-Market of this token i.e HMSTR then follow the steps below.

• Goto the exchange platform, you must be a registered user for this to work for you. On the interface you will see the Pre-Market option as in the below screenshot.

• Click on it and then select the asset you wish to participate in its Pre-Market buy or sell as in the case below I have selected the HMSTR. All information needed for the buy and sell are seen in the screenshot.

• Ensure you have enough funds in your account because as a buyer and a seller you need a collateral.

Conclusion

Pre-Market is a means where buyers and sellers place orders i.e the price and quantity of the asset they wish to buy and sell and they are matched together by the exchange in waiting for the official listing of the said asset. This acts help them to provide liquidity to the exchange and the token and also give them the privilege to purchase the token at much lesser price thereby maximising profits.

Finally, I want to thank you all for reading through my post today. If you have any questions or contributions, please do well to use the comment section of this post. See you all in my next publication.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}

NB: All images except otherwise stated are mine and taken from the Kucoin application.