What Is the Hamster Kombat Pre-Market and How To Use It?
Major exchanges have started pre-marketing Hamster Kombat (HMSTR), hinting at the token's imminent launch. One of the latest exchanges to launch this initiative is Bybit. What is the pre-market and how to buy HMSTR tokens before listing?
The Hamster Kombat (HMSTR) pre-market allows you to buy HMSTR tokens before their official launch. Pre-market is a common feature among different exchanges. The pre-market platform allows investors to trade new tokens before they are officially listed, allowing them to trade at preferred prices. But how does this happen if the token doesn't exist yet?
Exchanges actually commit sellers and buyers at what price they are willing to sell and buy the token when trading officially begins. Sellers and buyers are also known as makers and takers. They place buy/sell orders on the pre-market platform, and the exchange takes a pledge. This will serve as a guarantee of timely settlement. The exchange will return the deposit upon successful and timely settlement.
To place a purchase order, the buyer needs to pay the transaction fee and the payment amount for the token. Then they only have to wait for their order to be executed.
The seller also pays the transaction fee and provides a deposit amount. Once his order is matched with the buyer, he needs to send the tokens at the time of settlement.
The great thing about pre-market trading is that early sellers and buyers are given a chance to strike a deal at prices that are favorable to them. And in most cases, this is exactly what happens. However, pre-market prices can be far from reality. It should not be forgotten that exchanges take a fee for the service. Sometimes these fees can be much higher than in standard trading. And if for some reason one party fails to fulfill its obligations, exchanges seize the pledge.
How to buy/sell HMSTR tokens on the pre-market?
Disclaimer: We are not encouraging you to trade assets, our article is for informational purposes only. All decisions are left to you. Remember the importance of doing your own research.
We will look at HMSTR pre-market trading using the Bybit exchange as an example. Exchange representatives emphasized that HMSTR tokens are currently points, which will be converted later into tokens when the official exchange rate is announced.
1. Go through Bybit registration if you don't have an account yet. Don't forget to go through KYC and fund your account.
2. Go to the HMSTR pre-market page https://www.bybit.com/en/trade/spot/pre-market?token=HMSTR
Source and Copyright © Bybit
3. Next, click "Create Order" and specify the number of coins you wish to sell.
Source and Copyright © Bybit
4. Alternatively, if you wish to purchase HMSTR, you can scroll just below and select the right seller from the list of sellers and then click on "Buy".
Source and Copyright © Bybit
5. Follow the instructions and make the transaction.
Note: If you are selling HMSTR, after listing, you will have a period of time to transfer the tokens to the exchange. They will be automatically withdrawn from your account and sent to the buyer you made the transaction with on the pre-market. The deposit amount will come along with the payment for the tokens to your wallet.
How will the pre-market affect the price of HMSTR at listing?
In a separate article, we have already speculated on what the price of HMSTR might be at listing. But what do Bybit officials think about it? The official announcement website says that the pre-market may reflect market expectations, but the official listing price may depend on other factors. Ultimately, the price will be determined by the market, and there is not necessarily a direct correlation between the pre-market and listing prices.
Therefore, to summarize what the Bybit team has said let us once again highlight the risks involved in trading HMSTR on the pre-market. The decision is up to you, but don't forget to do your own research.
