Mostly, investors lose in the crypto market because of poor analysis. People are afraid to make decisions to buy/sell assets, so they try to shift the responsibility to a channel, Influencer or Musk.
Today I will show you the basic rules for your own analysis of any unfamiliar token you are advised to buy
Situation:
You see that Binance is launching a HOOK token on the lunchpad. Suddenly, someone offers you in a PM to buy it on PancakeSwap cheaper and before listing. Very much want to buy, but how not to get on scam?
Always check token on CoinMarketCap
The first thing to do is to go to CMC (CoinMarketCap) and check this token there. If there is no trading there yet and it says ICO, the token is not traded anywhere yet, and you are being offered a SCAM!
Check announcements
The HOOK token page on CMC has a section with the project’s twitter/discord. Go to Twitter and look at the announcements from the last week or two. If there is no information there about trading the token on Pancake or other airdrops – you are being offered a scam.
Also you can go to the site (you can find it on CMC as well) and read about the project, what problem it solves, what team and investors it has…
Checking the contract
Let’s say the channel offers to buy HOOK token before listing on Binance. In order for you to buy the token, the scammer will post the scam token contract under the guise of a real token and will spell out instructions on how to buy it on Pancake.
NEVER COPY TOKEN CONTRACTS FROM TG CHANNELS.
All official contracts are on CMC, Coingecko, DropsTab, Cryptorank + in whitepaper of each project.
Basically read the whitepaper
The whitepaper is not as scary as everyone tells us. There are a lot of interesting things there. CMC has a link to each project’s whitepaper. It’s a good idea, a basic flip through the documents, at least to look at the tokenomics of the project (what the token is for, its functions) and what the project does.
See where the token is traded
The most common question in chat is “where can I buy X token?” To answer this question, just go to CMC – type in the token you are interested in – go to “Markets” section. There will be a list of all exchanges (CEX and DEX), where the token is traded.
In conclusion:
We often make the mistake of acting too fast when it comes to making money and too slow when it comes to preserving assets.
Always ask yourself: do I want to earn now or not to lose? If you want to make money, act gradually and don’t buy shitcoins with all your money!
I hope this information helps you save money, save the information or pass it on to a newbie friend