What is new launch coin? Is it safe to invest?

We will talk about What is new launch coin? is it safe to invest? where to invest in new coin? is it profitable? these are some important questions that many new traders want to know and we will talk in details about them.

A new lunch coin refers to when a company, person or team lunch there new cryptocurrency project( a new coin or token) for public to buy it. Anyone can launch there own coin but there will be different and difficult situation(we will talk about that later in details)

There are some important thing that you need to know like what it mean, how it work, how you can earn money with this.

What is New Launch Coin And How it Work:

Let’s say there is person who has team and investment, and now want to launch there coin, they make project(what is the name of coin how much supply can be given, where to launch after completing project and many more thing). The project create a new crypto asset like coin or token and make it available for public to purchase, now any one can buy there coins or token

They do that via , initial exchange offering (IEO), initial coin offering (ICO), token generation event (TGE) or direct listing. these are some method how it done.

Is it Safe To Invest:

No, new launch coins are very risky, they give huge profit but also loss or total loss some time.

For Example: you buy new coin name XYZ starting prize is 0.0001$, you are thinking what if it’s price come to 1$ i will be rich but new coin has no history you cannot analyze chart or background properly and some trader also don’t know how much share founder and there team member are holding, so if you buy that coin and the major share holders withdraw there amount your money will loss and in some cases your money will be gone, There are many scams like that where people create fake coin, try to famous it in social media they will tell you to buy that it will make you rich but it fraud so be aware of those people.

Some Major Point:

• Because the coin is new, there is only little track record, For example, what is coin history, social media influence, how many people trading in that coin, is the person or team that launch that coin is trusted. These are some major question that there answer must know if you want to invest in that coin, other wise it will be very risky.
• If that coin also available in future trading feature then his Liquidity may be low initially because new coin has low number of people trading, so bigger price swing, mean highly chances of loss.
• There are many coin that are driven by memes and social media hype, they are very risky but profitable at the same time, because they try to hype there coin through social media and memes and some get hit, many people invest in those coin just for fun.
• These coin some time face legal risk, and if any issue find then the token might be considered a security penalty or face other compliance issues.
• Some times coins founder or one person hold big portion that lead to coin dump, there are other issue like, pre minded token(ready to do fraud with you), unclear vesting schedules. these are also some reason that become there downfall and many token dump early, it’s also called Tokenomics issues.

How to Find if Coin is Safe to Invest ?

There are some important thing that you need to check if you want to invest in new coin.

Founder and Team background:

First thing you need to check is, who is behind this who is the founder, some time big shots also launch there coin to represent there company, that may be become profitable coin in future so keep an eye on them, after check what team is working in that coin, is it good can they make this coin big, are they reliable, do they have credible record.

Check value:

See what is important in that coin what is the motive of there coin what problem does that coin solve? why people invest in that coin?

Check Tokenomics:

Check total supply how much token they launch, after that check how much token founder has how much token advisors and team member has, are other people interested to buy and hold that coin, also check how much token are released over time. these are important thing that tell you about coin life, can that coin go for long time or is good for just quick profit.

Development:

Check what there team is doing, are they working hard for there coin development or they are just passing there time, is there clear plan for there coin future or not.

Are They Doing It Right:

Also check is there any thing illegal or risky that can put them in some legal issue, some time even team don’t know about what they are doing wrong(so if there is anything risky show are there team aware of this or not). some time when those face legal issues, they might try to shut every thing and want to escape and your investment might loss.

Exchange listing:

Check in which exchange they are will list and when? and where are they available now, how easy will it to be buy or sell there coin.(remember binance and some exchange never disclose when and who new coin is going to launch).

these are some very important thing you need to know if you want to invest in new coin.

where to find details about new coins:

There some place that i can recommend you where you can find many information about new coins.

• Binance launch pool(there new coin and token launch)
• CoinMarketCap
• CoinGecko
• CoinList

these are best and trusted platform and website where you can find most of the coin information.

there are many scammers who will try to scam you by telling you to invest in there coin or some random coin don’t trust them, research first then invest.

this all for now, if you want to know what you need to do before start your trading then click here

And if you wanted to know about bainace security feature then click here

or if you wanted to know about Risk management click here

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