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How to tell if a Crypto Token has a promising future

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Finding highly profitable tokens with a high potential for growth is difficult, as some suffer from a lack of adoption and bad management on the part of the founders. However, there are other elements that impact a token’s future, such as DEX Tokens, which have a higher probability of making it in the markets.

What other elements influence this?

There are several elements that influence this, and they are as follows:

The supply and demand for tokens

The number of markets supporting Project

The technicals of tokens

Fundamentals and Technical

Many traders take this into account since they understand how important it is. Most traders just pay attention to the technical side of things, such as how the price is changing. As a trader, you must be able to analyze candlestick patterns and chart patterns in order to predict how the price will move, whether bullish or bearish. However, some argue that fundamentals simply serve as a trigger for breakouts to occur.

Supply and demand

These are also important because if the demand is high and the supply is high the token will not live since there is no factor to push the price up, but if the demand is high and the supply is low, the price will skyrocket and the token will pay the bills.

Numbers of markets

Another essential consideration is the number of markets on which the token is listed, as this shows that the token is not a useless token if it is listed on multiple exchanges, since this offers investors optimism.

If you see a token listed on crypto.com, Binance, or Coinbase, it will give you that energy since listing on large and numerous exchanges will increase capitalization volumes, causing the price to rise.

Projects that are behind or in support of a specific token will aid in identifying, for example, tokens like CRO from crypto.com and BNB from Binance, as well as UNI from Uniswap, can be told that they have a bright future due to the projects that are in support.

Final thoughts

So these are some of the elements that influence the future of a token; I’m sure there are many more, such as the backing from the company behind the token and so on.

Elikem Codda

From Miami to New York, the race for Bitcoin adoption and business is heating up.

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