Let me tell you a story,
We all are in front of our screens looking for the next 1000X, i mean who would blame us, once we heard about the amazing story from a friend that made 100$ into 100,000$, we know we deserve the same.
The Pitbull Cryptocurrency on the Binance Smart Chain is one of the coins you could have heard about in one of these stories and you might be tempted to go in too.
And this would be a great choice due to the unique technicalities around $PIT and its community.
Liquidity and why it is important
The most important aspect of every token on the Binance Smart Chain and trading in general is liquidity.
Liquidity is a measure of ease in which an token or asset can be converted to an other without affecting the price. It determines how quickly and easily assets can be sold.
Adequate liquidity indicates that an token can be easily bought and sold without impacting the price. On the other end, a lack of liquidity implies that users who want to purchase large amounts of the token could face difficulties, typically resulting in higher slippage.
How is LP created, stored and secured?
In Pitbull the ownership of the smart contract is renounced and the LP burned forever. In the chart below you can see how the smart contract handles fees and creates more burned liquidity
Identifying The Whales
Generally, when investing in long-term coin, always check to see who the top holders are and what their wallet size is. It’s always more bullish when the top holders are whales who are holding or accumulating more.
But you should avoid coins with a few wallets holding a big majority of all available supply, especially on the BSC one of them dumping can hold a coin back forever.
Checking who the top holders are is simple as looking at the holders tab on BSCScan.
Why the current price doesn’t matter as much as you think
If you want to sell your holdings, price is the most important factor and should always be considered in a decision. Selling without caring about that won’t make you wealthy ever.
But if you are invested into the BSC right now, no matter in which coin, if you have made your decision to invest on regards of your own research and with money you don’t immediately need… Hold!
Nothing is set yet and most prices are build up by hype, in the long run there will be deciding factors beyond hype and short term pumps. Ask yourself what does your coin offer besides that.
Name and branding for example, there are so many coins out there, which will have a hard time even reaching some kind of adoption, they lack every kind of brand value and are often just copycats of existing coins with prefixes like safe/fair/elon…
Products and use cases, if you are invested into a coin that showed first results in developing own use cases or selling NFT in a “professional” way, make sure to stick to them until you see the finished product.
Content and production quality, if you have enough funding, you are able to push the shittiest content to great masses and great hype, but what about real production value? Wouldn’t you want to find a coin by seeing some of their genuine content and thinking to yourself:
Wow this looks amazing, i want to know more