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How to determine if a Token has a bright future

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Written by   10
3 days ago

Spotting highly lucrative tokens with a possibility of booming is not that easy as some suffer due to lack of adoption and poor management from the creators. However there are some factors which determine the future of a certain token, e.g we have DEX Tokens, those have higher chances of making it in the markets.

What Other factors determine?

There are factors which affect and these include:

  • the technical of tokens

  • supply and demand

  • the number of markets

  • Projects in support

Technical and Fundamentals A lot of traders take this into consideration because they know this plays a pivotal role. Mostly traders only put their focus on the technical side checking how the price is moving. If you are a trader you must be able to interpret the candlesticks patterns and chart pattern for you to tell how the price will move be it bullish or bearish. However there are some who say fundamentals only act as a catalyst to allow breakouts to take place.

Supply and demand plays a significant role aswel because if the demand is so much and supply is too much then the token will not survive because there is no any factor to push the price up but if we have too much demand and the supply is low then the price will hit the roof and that token will pay the bills.

Numbers of markets on which the token is listed is another important factor and this shows that the token is not a useless token if it is listed on many exchanges as this gives hope to investors. Imagine you see token listed on crypto.com, Binance or coinbase this will give you that energy because if it listed on large and many exchanges then this will push the volumes of capitalization, therefore the price will go up.

Projects behind or in support of a certain token will help in determining, e.g tokens like CRO from crypto.com and BNB from Binance even UNI from Uniswap, you can tell that they have a bright future do to the projects in support.

Conclusion

So these are some of the factors which play a role in determining the future, i know there are so many which include the backup from the company behind the token and so many other. You can share what you have in the comment section for the benefit of others.

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Written by   10
3 days ago
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