How to buy new coins in the crypto world?
Buying new coins, especially those that have just launched, is indeed quite tempting, as many new coins are priced low with significant potential for appreciation. However, this is also full of "traps". If you really want to give it a try, it is recommended to follow these steps:
1. Research the project background first: Don't rush in without understanding.
Check who the team behind this new project is, whether there are actual use cases, if the white paper is credible, the team's background, etc. Many new coins will boast extensively when they are launched, but very few have real technology and a supporting team. We need to have our own judgment and not blindly chase trends.
2. Choose a reliable exchange: New coins generally first launch on smaller exchanges before they have the chance to get to larger platforms, so if you decide to buy, make sure to find a safe and reputable exchange. Be cautious of those "shady" platforms, as they might lure you in and then run away, leaving you with nothing. Platforms like Binance, Huobi, and Coinbase are relatively safe, but most new coins will first appear on some smaller exchanges, so be mindful of the risks.
3. Test the waters with small funds, don’t bet heavily: The new market is very volatile, and the price can fluctuate dramatically right after a launch, so start with a small amount to test the waters. Initially buying a little can help you gauge the trend before deciding whether to increase your position and control your risks. If it drops, you won't lose too much; if it rises, it counts as a good start.
Choose the right timing: When a new coin is launched, there is often an initial surge, followed by a sharp drop, known as "dumping", mainly due to early holders cashing out. Therefore, don’t rush in as soon as it launches; observe for a few days and wait for the price to stabilize a bit before considering an entry. Don’t rush to “chase the high”; stay calm, and opportunities will always arise.
4. Always be ready to cut losses and take profits: New coins are highly volatile; sometimes they can multiply overnight, only to be halved the next day.
Thus, having a profit-taking and stop-loss mindset is essential. If you make a certain profit, you can sell part of it to secure some profit, at least to “break even”. If the price keeps falling and reaches your set stop-loss point, be decisive in exiting; don’t expect it to “bounce back”. There are plenty of cases where new coins become “dead coins”.
