Picking the right token for trading or investment is crucial for success in the crypto market. Here’s a simple, step-by-step guide to help you make smarter choices:
👉 1.Check Liquidity and Volume
Always look for tokens with high trading volume and liquidity (e.g., daily volume above $1M). Tokens with low volume are more susceptible to price manipulation and slippage.
👉 2. Analyze Trends
Use higher timeframes (4H or daily) to spot clear uptrends or downtrends. Then, switch to lower timeframes (1H or 15M) for precise entry points.
👉 3. Consider Volatility
Choose tokens showing significant movement—ideally 5-10% price change in the last 24 hours. Avoid tokens stuck in narrow ranges, as they offer fewer trading opportunities.
👉 4. Research News and Events
Stay updated on news, partnerships, upgrades, or listings. News-driven tokens often experience strong price movement.
👉 5. Evaluate Market Cap and Supply
Calculate the token’s market cap by dividing the total value by the circulating supply. This helps you estimate a fair price and avoid overpaying.
👉 6. Use Technical Analysis
Mark key support and resistance levels. Use simple indicators like RSI or moving averages to confirm trends. Wait for clear price action signals before entering a trade.
👉 7. Set Risk/Reward Ratios
Ensure each trade has a minimum 1:2 risk/reward ratio. For example, risk $10 to potentially gain $20.
By following these steps, you’ll increase your chances of making informed, profitable trades on Binance. Always do your own research and never invest more than you can afford to lose.
#USNonFarmPayrollReport #FOMCWatch #ETHBreaksATH
