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Things You Need To Look, Learn And Search To Avoid Getting Rugpulled And Lost Money: Degen Playing.

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Written by   178
8 months ago
Topics: Cryptocurrency, Defi, Rugpull, Scam, Money, ...

January 25, 2022.

There are many kinds of people or investors who have different kinds of strategy when investing in cryptocurrency. Some loves project with potential in the long term, some loves to find a hidden gem that could bloom anytime and some loves easy money with degens or playing with a project with a great potential in a short term.

However, in crypto, all of those things mentioned doesn't guarantee as safe investments. No matter how you invest your money, there will always be risks following you and if you think that you can probably get huge amount of money in cryptocurrency, then you should also think that you can also lost a lot from it.

But up to this date, the famous known strategy in crypto especially for newbies who wants a quick money is degen trading where most of the time most people lost. So in this article, I will state some tips on how you can avoid losing money with short term play investments or worst, get rugpulled again and again.

Avoid Those Token That Can Be Minted Infinitely.

People who doesn't have any knowledge would think that this is actually good because there will be a lot of tokens that can be bought in the market and lots of people can have it if they have the means to buy it. If you are one of the people who thinks this way, then you are funny.

Always remember the law of supply and demand, and when a token have enormous supply, then it could turn out bad for people who holds this token.

Why?

Simple. The more supply there is, the lesser demands the token will have. And that would mean lesser value it will have... depends on the use cases.

But that's not it. If the token can be minted nonstop by the people who have the control over it, then it will be very bad for investors. People or investors might keep on buying the token simply because of the hype or good fundamentals, but the devs can, at anytime, mint or issue new tokens and dump or sell it the market. If people keeps buying, devs can keep selling the newly minted tokens.

But of course, not all tokens with infinite supply are bad investments. Ethereum (ETH), for example, the top 2 coin in cryptocurrency next to Bitcoin, has infinite supply. The reason ETH stays on top of other altcoins is that it has laid a good and strong foundation and gave a great usecases for the people.

So if you ever invest in a token with infinite supply, make sure it has great usecases to make it more demanding and that could save your investments.

Watch Out For The Liquidity And The LP Locked.

Many people still misses this very important things when investing and eventually lost the invested money because of the lack of information.

Checking the token's Liquidity means a lot if you plan on buying that token. The higher the Liquidity is, the better price you can buy the token, and vice versa.

And when it comes to the LP Locked or Liquidity Pool Locked, it is one of the most important thing to know about;

  1. Is the LP Locked?

  2. How much LP was locked?

  3. Lastly, how long will it be locked?

When thinking of investing in a new project, always bring this questions and find it looking in the project's website, token checkers or even asking in the project's community or the developers itself.

If the LP was not locked by the developers or if the LP was only locked for a few days, weeks or months, the devs can freely sell the LP tokens in the market when it's already available and that would end up as what we call Rugpull. And at this point, there will be no point in selling your tokens as it doesn't have any considerable value anymore as there is no more liquidity available to recognize the price of your tokens. Better move on and look for other opportunities.

Bonus: Check The Token In Any Token Checkers.

It always wise to know how safe the token is and the best way to get started with is looking it up in a token checkers like Token Sniffer, Honeypot Checker, etc.

Always check if the token is;

  1. Sellable.

  2. LP is locked.

  3. No mint function for new tokens.

  4. Devs can not activate and deactivate buy and sell in the token's smart contract at their will.

Final Say.

Many people still doesn't know how, when and where to start doing a research but doesn't know how it easy it really is if you just persevere to learn it. Hopefully, this article will serve as a good guidance for anyone starting to learn in crypto.

Image Source: Google.

END.

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Written by   178
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Topics: Cryptocurrency, Defi, Rugpull, Scam, Money, ...
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Comments

A little research goes a long way.

Especially when it comes to rug pulls in a post-2017 ICO world where over 70% are proven to be scams in some form.

$ 0.00
8 months ago

Yup. But even now in BSC ecosystem where scams ang rugpulls usually happens. Some says BSC is the gate of rugpulls hahaha

$ 0.00
8 months ago

Ako bili nang bili wala nang dyor 😂 haha kawalang gana market now tsk

$ 0.00
8 months ago

Kaya nga. Baka mag bear market pa nga to. Haha

$ 0.00
8 months ago

Jusko kailan kaya ulit bull market baka after 2-3 yrs pa 😂

$ 0.00
8 months ago

Kakabili ko lang ng panda sa sbch. Iniisip ko Wala pang whitepaper 🤣 jusko. No turning back na pagbili ko pero nft Naman sya

$ 0.00
User's avatar Yen
8 months ago

Same 🤣.. Pro nsa website naman roadmap.. At hndumi nmn cguro sla mag aaksaya ng oras gumawa ng gaming site fore inly 300BCH haha.. Laking opportunity na yun sa dev bilang 1st GameFi game sa sbch

$ 0.00
8 months ago

Sige lang, total sugal nadin naman yan. Sana lang worth it 😁

$ 0.00
8 months ago

Sana nga. Haha

$ 0.00
User's avatar Yen
8 months ago