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 ?
It’s almost rare to see in this kind of coin trading because I think there are a lot of risks that might happen, if someone is not able to analyze the token properly.
From some summaries that I’ve read, usually people will look at the supply, investors and who the developers are behind the coin, this aims to recognize whether the developer has successfully run previous projects or is he still new to the industry.
In some capacity this is quite risky because coins with too much supply usually do not achieve good prices and instead more of them lose value in the market.
Eventually they are abandoned and although some do succeed, there is still a risk if someone does not understand how to recognize coins.