📈 Why is $SOL good for spot trading?
✅ High liquidity – fast trades with low spreads.
✅ Low fees – significantly cheaper than Ethereum.
✅ High transaction speed – up to 65,000 TPS, reducing delays.
✅ Popularity and support – traded on all major exchanges.
✅ Alternative blockchain – competes with ETH in DeFi and NFT.
⚠️ Possible downsides
❌💡 Price volatility – strong movements both up and down.
❌💡 Competition with ETH and other L1 – may affect demand.
🎯 Simple SOL trading strategy for beginners ($100 initial capital)
1️⃣ Approach: Scalping or short-term trading (1-7 days)
We use 30-60 minute charts for analysis.
Basis: trading at support and resistance levels.
2️⃣ Entry and exit points
Purchase: at support levels (for example, after a small correction).
Sell: at resistance levels or with a +5-10% profit.
Stop-loss: set 3-5% below the entry point to minimize losses.
3️⃣ Capital allocation ($100)
💰 50% ($50) – Main trade at the nearest support level.
💰 30% ($30) – Strengthening the position when it rises above the key level.
💰 20% ($20) – Reserve for strong pullbacks or other opportunities.
4️⃣ Example trade (conditional prices)
SOL price: $95
Support level: $93 → Buy at $50.
Resistance level: $100-105 → Exit with 5-10% profit.
Stop-loss: $90 → Limit losses.
🔹 Summary
$SOL – a great tool for spot trading due to high liquidity and speed. However, network failure risks and volatility should be considered. It's important for beginners to monitor support/resistance levels, use stop-losses, and not invest more than they are willing to lose.