Essential Steps Before Buying a Newly Listed Coin on Binance When Launched🔥

When a new token launches on Binance or any major exchange, it can be tempting to jump in. However, making informed decisions is key to avoiding unnecessary risks and losses. Follow this step-by-step strategy to evaluate a coin before you decide to trade or invest:

1. Research the pre-launch sale:

Start by checking if the token has had any initial coin offering (ICO), presale, or private sale. If so, determine the presale price and compare it to the expected listing price. Tokens that have gained significant traction before launch often see early investors quickly sell their holdings to secure profits.

2. Understand Supply Dynamics:

Find out the token’s total supply and circulating supply at launch. The total supply represents the maximum number of tokens that will ever exist, while the circulating supply reflects the number of tokens currently available for trading. Having a relatively high circulating supply compared to demand can put downward pressure on the price.

3. Define the scope of the project:

Define the focus of the project. Is it part of a popular narrative such as AI, gaming, layer 1 or layer 2 solutions, metaverse, decentralized finance, or another area? Projects tied to current hype cycles may see initial increases but may lose momentum once they shift focus.