The crypto market is currently bullish rn, and i’m finally feeling optimistic again. I won’t lie i’ve been thinking about premarket trading lately because the past few ones i traded made me good returns.
I’ve seen there’s mixed sentiment when it comes to trading tokens on premarket and i can’t overlook the fact that it’s highly risky but when i check the technicals, the volume and liquidity of the token i have in mind, it has helped me a long way. Also, most especially its usecase. I remember when i traded Grass on premarket, the return was quite good, recently went for Initia and now I’m thinking of getting my hands on Sign after realizing, it’s powers tools like TokenTable.
But what would you check for, if you were to trade a token on premarket today ?
In live trading, where you have to analyze a coin, when you go to trade in the pre-market, you have to analyze different aspects. When the pre-market first started to launch various exchanges, you could make very good profits. But currently, most of the coins listed in the pre-market are much lower when they start trading. So only sellers are getting more profit than buyers from the market. Trading in the pre-market is much riskier than live trading. One problem here is that it takes about 2-4 hours to release the coin you buy from the pre-market, due to which even though you can make a profit according to the starting price of trading, when the coins are released, the possibility of loss is more than profit. So in the current context, I am not very excited about the pre-market.