How to determine the classification of tokens?
How to analyze token prices?
Tokens in the global market are divided into 3 groups, including:
1. Top Market Tokens
Tokens that are in the top 10 market are medium-risk tokens for investment, such as BTC, ETH, BNB, SOL, XRP, ADA, DOGE, TRX, and others, you can check it yourself.
2. New Tokens
New tokens entering the global market are considered high-risk tokens, as they can rise and fall more than other tokens, and mostly 90% of tokens experience an increase first, like SOPH, HUMA, NAPA, and others.
3. Old Tokens
Old tokens usually have experienced periods of rise and fall, with low risk because old tokens tend to have 90% of prices decreasing, such as $WCT $SXT $JUP #ZK #OM #MarketRebound . Usually, tokens form an upward graph, but eventually, the prices keep falling.
Example: OM after touching the price of 8 USD, has decreased several times since, but the hopes and expectations of traders have risen, there was a 10% upward graph thinking the price would rise, but in the end, the price dropped.
Actually, old tokens have low risk if you take the right position, because 90% of the prices will decrease, so take advantage of the price drop with a short position in futures.