Two Things To Know To Avoid Getting Rugpulled Or Lost Money From Newly Launched Tokens.

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Avatar for Kryptlook
2 years ago

Many people, especially people who are just new to cryptocurrencies and investing, losses money simply because they were just a victim of "hype" from a crypto influencers who were paid to shill the project and didn't really gave time to know and understand about the project's vision.

When things isn't going well (talking about the chart), losing small investors will just probably spread fud in the community while others are still in disbelief or denial and continue to believe in the project by reading positive comments in the community. Even though the project is dying and chart is showing it, people behind the the project will give false hope to its community and then dumped on them eventually.

This article will serve as your guide to your degen trading journey and can probably save you from losing money as this a simple way of doing your own research and trading at your own risk.

1. Always Check The Liquidity and LP Lock.

Everyone, especially new ones, should know the importance of having a good amount of Liquidity and how long the Liquidity of the token is lock.

The Liquidity is consists of 2 tokens being paired, for example; BCH/BTC, ETH/BTC, BNB/BTC.

If you look at it in a token from Binance Smartchain, let's says for example the token is $PFY being traded against $BNB, then the Liquidity pair should be PFY/BNB pairs.

The bigger the Liquidity is in a token, the better it can give a trading price for you to buy or sell the token. It can give you the best price possible when there is a good amount of Liquidity to be traded.

And of course, always look or ask where and how long the Liquidity is lock. The longer the liquidity is locked, the safer you can get in investing in that token.

When the token is just lock for a few days, weeks or months, always be cautious and think thoroughly if it is worth investing. When the Liquidity of that token is unlocked, there is a high chance that the developers or team owning the token will remove the Liquidity and dumped it on the market resulting a rugpull. Always be cautious!

2. Check If There Is A Mint Function In The Token's Smart Contract.

Let me use the new Play-To-Earn projects as an example for this one.

Most people only use the chart (Poocoin, Dextools, etc) to know or see what is the total tokens circulating or available in the market in the new NFT game. When people saw that there is only a very few supply of the token, they instantly jumped into conclusion that this token will surely pump harder as they think that the lesser the supply is, the more demands it can get without knowing the other risks.

Since the hype of Play-To-Earn is still around, new NFT game projects will surely be hyped by people and shillers and this is where the advantage take place for the developers of the project - mint new tokens and dump it on investors.

When there is a mint function on the contract, everytime the price goes up and when everyone is buying, the team wallet will sell a bulk amount of tokens that was minted from the contract causing a big red candles on the chart. Then this is where everyone believing in the project to buy the dip while the devs are selling on every top.

This is one of the causes why a price of the certain token can't go up easily especially when there is no buying pressure. Always know when to buy and to exit to avoid being a victim of this scam project.

Bonus Knowledge.

3. Check If The Ownership Has Been Renounced.

Ownership Renounced means that the developers has no longer access to change something in the token's contract.

When the contract has not been renounced yet, the developers can;

  • Change the buying and selling tax of the token.

  • Enabled and disabled trading the token.

  • Mint new tokens.

  • And more.

Final Say.

Experienced investors says that losing money is easy than gaining even when doing DYOR while newbie thinks gaining money is easy without it and just rely on hype and shills. This is one of the worst ways to lose instantly in cryptocurrency. Always do your own research.

Image Source: Google.

FIN.

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2 years ago

Comments

Totally agree with what you have explained. I add other information that may be helpful:

  • ALWAYS check the white paper to know the type of project and its robustness;
  • Write down the hash of the smart-contract and check on the reference BC if there are audits on that token;
  • Apply an extremely restrictive Money Management that allows you to lose only a fraction of the capital you are willing to lose.
$ 0.05
2 years ago

You sure know how to DYOR bro πŸ”₯

$ 0.00
2 years ago

I as a newbi appreciate your efforts. This will very helpful for me in my crypto journey thanks bro

$ 0.01
2 years ago

Thank you bro. Thanks for the appreciation. Good luck on your crypto journey πŸ˜‡

$ 0.00
2 years ago

When to know when liquidity of token was lock or not? Should be ask on devs as it were? Furthermore when do we realize that the proprietorship repudiate?

$ 0.00
2 years ago

Nakakatakot maginvest pag walang research muna. Pero kahit magresearch meron parin mga devs na magrurugpull kaya doble ingat. Invest only the money you can afford to lose.

$ 0.01
2 years ago

Tama. Kahit ano pang research mo may risk of losing pa talaga yan.

$ 0.00
2 years ago

Saan pala nakikita or nalalaman 'yung locked liquidity?

$ 0.00
2 years ago

Sa Mudra, Pinksale. Meron pa yung iba medyo nakalimotan ko, kagigising lang haha

$ 0.00
2 years ago

Kining bag ong launch sa coins.ph nga cryptos, legit kaya ni? Hehe

$ 0.00
2 years ago

Oo legit na haha mga dugay nana nga coin.

$ 0.00
2 years ago

Aw hehe. Maro lng kaayo ang coins oy, dako kayog difference sa current price og sa ila exchange rate. πŸ€¦β€β™€οΈ

$ 0.00
2 years ago

Mao gani. Dako silag kaltas. Sanglit huwat tas gcash kay may crypto na sunod haha

$ 0.00
2 years ago

Wa ko kasagang sa "sanglit" oy πŸ™ŠπŸ˜†

$ 0.00
2 years ago

Haha ngano ma'am? Maot na nga word sa inyo?

$ 0.00
2 years ago

Di man nuon. Lawom lang kaayo. Di ko ka scuba dive. Haha

$ 0.00
2 years ago

"That's why" kung in english na ma'am πŸ˜‚

$ 0.00
2 years ago

https://cdn.rcimg.net/Eybyoung/88dcc4c7/8e628d02583bf947e6c8f0b807ac5070.jpeg?width=600

Pa click ko ana link para makita ba nimu message di ma type uy spammers daw πŸ˜‚

$ 0.00
2 years ago

Aw haha okay2 nice nice. Salamat 😁

$ 0.00
2 years ago

$.10 rajud e share payts na πŸ˜‚

$ 0.00
2 years ago

When to know when liquidity of token was lock or not? Must be ask on devs only? And when do we know that the ownership renounce?

$ 0.00
2 years ago

Thank you byang ☺️

$ 0.00
2 years ago

The devs can give the link where the Liquidity is locked. You can check the bscscan or etherscan to know if the Ownership has been renounced or not.

$ 0.00
2 years ago

Okay what about SmarBCH?

$ 0.00
2 years ago

Aaralin ko palang SmartBCH e. Last check ko di pa makita ibang info ng tokens sa SmartBCHscan. Haha

$ 0.00
2 years ago

Kaya nga yung about transactions lang ata kita don.

$ 0.00
2 years ago

Kht iba dn na kala mo legit. Narurugpull pa rn πŸ˜… so invest na lng what we can afford to lose

$ 0.00
2 years ago

Kaya nga, lalo na mga copycat haha

$ 0.00
2 years ago

Kuu yan ang ayaw ko ng maexperience talaga. 2 times ko na naranasan yan sana di na madagdagan aguyy.

$ 0.00
2 years ago

Sakin maraming beses na, tsaka honeypot din haha

$ 0.00
2 years ago