When a beginner opens Binance Alpha, they often see coins pumping by 100% or even 200%. After seeing this, the first question that comes to their mind is: how can I choose a coin that will also pump 2x or 3x?In this guide, I will explain simple steps that will help you identify winning coins more easily.
Key Analysis Steps
If you have decided to buy a coin on Binance Alpha, then before buying it, first examine the coin properly, which you can do by following these simple steps;
Analyze Audit Report
When you open a coin on Binance Alpha, you will see the Audit option on the top left of the page. A lot of traders ignore the Audit report, but it has very important value in coin selection.
In the audit report, you must properly examine the following two types of risk;
- Contract Risk
- Trading Risk
Contract Risk
In contract risk, always check that the coin contract ownership is renounced and the contract code is verified, but the following items should not be found;
- Whitelist Restriction
- Cooling-off Restrictions
- Blacklist Restriction
- Trading Suspension Function
- Sale Restriction
- Anti-whale Mechanism
- Self-Destruct
- Minting Risk
- Balance Manipulation
- Malicious Creater
- Hacking Risk
- Upgrade Risk
- Modifiable Tax
- Freezable Authority
Trading Risk
In trading risk, the following risks should not be present;
- Honeypot
- Gas Abuse
- Unusual Buy and Sell Tax
- Liquidity
- Rug Pull
- Abnormal Airdrop
- Wash Trading
Examine DD Hub
When you click on any coin on Binance Alpha, you can find DD Hub in the top left corner. DD Hub consists of two parts, which you should examine properly.
- Secondary Market
- Trading Data
Secondary Market
The secondary market explains the market info of the coin, which includes; 24hrs High, 24hrs Low, 24hrs Volume, 24hrs Transactions, Circulating Supply, Total Supply, Contract Address, links to the coin’s official website, and links to the coin’s official social accounts.
The main points that you have to focus on in the secondary market are circulating supply, contract address, and social accounts.
Circulating Supply
If you are planning to buy a coin, check first how much circulating supply is in the market. According to my view, the ideal circulating supply which should be present before we consider a coin for buying should be above 80%.
If you are planning to buy a coin whose circulating supply is below 50%, then the first thing that you should keep in mind is that don’t invest in that coin for the long term because in the future, when the team unlocks the other percentage, its price will drop. It’s simply the demand and supply rule.
Contract Address Analysis on Dextools
The next step that you have to do is to copy the contract address from the coin’s info on Binance Alpha and then paste it into https://www.dextools.io
Dextools will provide you broader information about the coin. You can also check whether the coin’s liquidity is locked or not. If liquidity is unlocked, then it would be very risky to buy that coin.
Binance Alpha does not provide the above information about liquidity.
You are often seeing that a coin first lists on PancakeSwap, Raydium, and Pump.fun, and Binance Alpha lists that coin after some time interval, so for better knowledge of the graph, you should check the graph on Dextools; it provides you a broader perspective.
Examining Social Account
The official social accounts of team keep people updated about upcoming partnerships and team progress.
When you check social accounts, you must examine how the community is responding to the coin’s progress; if you find a positive response from the community, then you can consider that coin for buying.
Trading Data
The second option that you should examine in DD Hub after secondary data is trading data. The trading data is divided into two parts;
- Top 10 DEX Pools Liquidity Graph
- Token Top 10 Holders% Graph
Top 10 DEX Pools Liquidity Graph
This graph provides you information about inflow and outflow of liquidity. When you look at this graph, you will see that the left side of the graph shows the amount of liquidity and the bottom side of the graph shows the corresponding time.
You can understand this graph by simply observing the lines. If the height of the lines in the graph is decreasing, it means liquidity is going down, and if the height of the lines in the graph is going up with time, then it means liquidity is increasing.
Token Top 10 Holders % Graph
In this graph, the red bar shows Top 10 holders %, the green bar shows Other Holders %, and the black line shows their ratio.
If the red bars are up, it means a big percentage of coins are accumulated by the top 10 holders, which is not a good sign because the coin’s fate is in the hands of a few.
If the green bars are up, it means that the coin’s supply percentage is safely distributed and there is no risk of a sudden price drop.
I personally believe that if beginners follow all the above steps properly before trading any coin, finding winning coins on Binance Alpha will not be difficult.