- Profit Opportunities with Currencies in Monitoring
When a coin enters Binance’s watchlist, it can present unique profit opportunities due to the volatility it generates. Typically, the watchlist announcement causes an initial drop in price due to fears of delisting. However, savvy traders can take advantage of the panic selling to buy the coin at extremely low prices and profit from possible quick recoveries, especially if the project takes steps to meet Binance’s requirements.
A current example is $TROY
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1️⃣ Understand Binance's criteria
Binance continually evaluates the performance of each listed crypto based on the following factors:
- Project team commitment: Regular updates and transparent communication.
- Trading volume: Assets with low volume may be considered inactive.
- Liquidity: Cryptos with little liquidity can be a problem for traders.
- Network stability: Constant failures, attacks or low security affect trust.
- Adherence to rules: Projects that violate laws or regulations may be removed.
- Contribution to the ecosystem: Currencies without innovation or relevance lose space.
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2️⃣ Warning signs of possible monitoring
Look out for the following signs:
- Sudden drop in trading volume: Check the chart to see if liquidity is decreasing.
- Lack of team updates: Projects without news or a consistent roadmap tend to be ignored.
- Loss of community interest: Official groups with little activity indicate disinterest.
- Frequent technical problems: Slow networks, hacks or instability are frowned upon.
- Regulatory pressure: News involving the project in legal problems is a strong indicator.
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3️⃣ Tools for monitoring signals
You can use some tools to anticipate movements:
- Social networks and official groups: Check if the team remains active and committed.
- Binance Alerts: Binance's announcements section is crucial for official information.
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4️⃣ Strategy to act before monitoring:
- If you are a holder: Consider reducing your exposure. Cryptos under monitoring may experience sudden drops.
- If you want to profit from volatility: Risky tokens tend to have unpredictable movements. Be alert for opportunities, but manage risks.
- Diversify your portfolio: Never concentrate your investments in a single asset.
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🎯Possible Candidates:
1. Low Liquidity Currencies
- Storj (STORJ): Volume has dropped significantly compared to its peak periods.
- Ontology (ONT): Although it was once promising, it has lost relevance.
2. Tokens with Stalled Projects
- Aragon (ANT): There are complaints from the community about lack of development.
- Civic (CVC): Project without new relevant updates.
3. Technical or Marketing Problems
- Ethernity Chain (ERN): Difficulty in delivering sustainable utility for NFTs.
- Dock (DOCK): Poor adhesion and limited functionality.
4. Tokens Related to Minor Protocols
- Komodo (KMD): Increased competition in the interoperability market.
- Wabi (WABI): Continuous decline in interest.
📍These coins are more likely to be placed under watch if they do not show substantial improvements. It is essential to monitor news and metrics of these cryptos to predict Binance's movements.
Disclaimer
The information provided here is for educational purposes only and should not be construed as financial, legal or investment advice. Any and all investment decisions are your sole responsibility. The cryptocurrency market is highly volatile and can result in significant losses.
