How to Safely Invest in New Cryptocurrencies

While it's tempting to jump on a new cryptocurrency the moment it is created, it's crucial to approach such investments with a cautious and informed mindset.

Why Not to Invest in New Cryptocurrencies Immediately

With years of experience in trading cryptocurrencies, it's clear that many new coins are subject to pump and dump schemes, where a group of insiders manipulate the market to drive up the price temporarily, only to crash it soon after. This is often facilitated through smart contracts that include specific clauses for fee collection that can range from 10 to 30% of each transaction. Even those backed by prominent exchanges like Binance can experience high volatility upon listing, as investors who bought in during the Initial Coin Offering (ICO) phase typically exit their positions for a good return on investment. This leaves the new token vulnerable to a sharp drop in value.

Strategies for Safe Investment

Instead of rushing to invest in new cryptos, it's advisable to approach such opportunities with a considered strategy. Here are a few steps you can follow:

1. Look for Established Exchanges for New Coin Listings

Cryptocurrency exchanges like MEXC offer a valuable service by being the 'early bird' in listing new and potentially profitable projects. Their platform is known for offering popular trading pairs like BTC/USDT, ETH/BTC, and LTC/USDT, along with both spot and margin trading options. This diversifies your trading opportunities and increases your chances of finding a profitable investment.

2. Thorough Research is Key

Before investing in any new cryptocurrency, it's essential to conduct thorough research. This includes looking at where the project has been listed and is currently trading. MEXC is one of the first exchanges to list a new project, making it a reliable source for early-stage investments. Additionally, MEXC's security system has remained robust and unscathed, making it a preferred choice for many.

3. Secure Your Account and Transactions

Upon choosing an exchange, proceed to download and register. For example, as a MEXC user, you don't need to verify your account before trading, unlike with other exchanges. Once registered, convert your fiat currency into USDT or another preferred cryptocurrency using methods like debit or credit card purchase, P2P systems, or other available options. After that, select a trading pair that best suits your trade and fill in your order at your desired price. The speed at which your order is completed depends on the number of users trading with the exchange and the trading volume.

Conclusion

While the allure of investing in brand new cryptocurrencies can be strong, it's important to weigh the risks and proceed with caution. Opting to invest through established and reputable exchanges like MEXC, and ensuring thorough research, can help mitigate the risks associated with new coin investments. By staying calm and avoiding the fear of missing out (FOMO), you can make more informed and thoughtful investment decisions.

By following these steps, you can increase your chances of finding profitable opportunities in the cryptocurrency market.