Top 5 Things Pro Traders Check Before Trading Crypto
The post Top 5 Things Pro Traders Check Before Trading Crypto appeared on BitcoinEthereumNews.com.
Speed matters in trading. But speed without preparation is a gamble. Pro traders can move quickly because they know exactly where to look. So, the fastest decisions aren’t made on instinct alone; they’re built on a quick, disciplined checklist. Here’s what they review before entering a position, and how you can access the same insights without hopping between tools. Liquidity and Volume Liquidity is the lifeblood of any tradable asset. It measures how easily you can buy or sell without moving the price too much. If there’s not enough liquidity, even a modest order can cause big price swings, which means you could end up paying far more (or receiving far less) than expected. What pros look at: 24-hour trading volume: High and consistent volume often signals active interest. Liquidity pool size and stability: Sudden drops in liquidity can be a red flag. Volume trends: Rising volume can point to building momentum, while sharp declines might indicate fading interest. A healthy liquidity profile means you can execute your trade with minimal slippage and less risk of being trapped in an illiquid position. Holder Distribution Who holds the supply matters as much as how much supply there is. If one wallet or a handful of wallets controls most of the tokens, the project’s price stability is at their mercy. Key things to check: Top wallet concentration: Ideally, ownership should be spread across many addresses. Movement from large holders: Whale buys or sells can trigger market-wide reactions. Historical wallet activity: Has the distribution been getting healthier over time, or more concentrated? Even a project with great fundamentals can see its price collapse if a dominant holder decides to sell a large chunk all at once. Contract Safety Smart contracts control how a token operates. If the contract contains malicious code, it can…
Filed under: News - @ August 15, 2025 7:26 pm