When a new cryptocurrency is launched on the Binance platform, there are specific steps to handle it and risks to be aware of, and I will explain them to you briefly and simply:
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First: How to deal with a new cryptocurrency on Binance
1. Follow-up and official announcements:
Follow Binance announcements on their official website or in their app, where they publish details about new coin listings: listing date, trading pairs, start time, and technical information.
2. Read the details:
Read the project description from its official source: the website, the whitepaper, the founding team, the project's goal, and partnerships.
3. Verify the smart contract (Contract Address):
When buying or depositing, always ensure the correct address for the cryptocurrency (especially if it's on a network like BNB Smart Chain or Ethereum).
4. Buy the cryptocurrency:
After listing, you can buy it in the 'Spot' section via pairs like BTC/USDT/BNB.
5. Storage:
Store the cryptocurrency in your Binance wallet, or transfer it to a secure external wallet (like Trust Wallet or Ledger) if you intend to hold it for a long time.
6. Monitoring and analysis:
Monitor the performance of the cryptocurrency on charts and analyze it technically and fundamentally (news, development, partnerships...).
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Second: The main risks when buying a new cryptocurrency
1. High price volatility:
New cryptocurrencies may spike significantly and then crash quickly, which is referred to as 'pump & dump'.
2. Artificial pump and dump:
Large investors (whales) may manipulate the price to mislead smaller investors, buying and then suddenly selling to profit at the expense of others.
3. Fraudulent projects or those without real utility:
Some cryptocurrencies do not have a real project behind them; they are created solely for speculation and to make money from traders.
4. Low liquidity:
If there is not enough demand for the cryptocurrency, it will be difficult to sell it later without a loss.
5. Development halt or technical failure:
The team may stop working on the project after raising money, or face technical issues that prevent the cryptocurrency from succeeding.
6. Security issues:
The project may be subject to hacks, or vulnerabilities in the smart contract may be discovered.
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Tips to protect yourself
Do not invest money you cannot afford to lose.
Do not enter right after launch; wait for the price to stabilize a bit.
Use stop loss to reduce losses if the price drops.
Read thoroughly about the project and check independent sources.
Follow the news and official channels related to the cryptocurrency.
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