I. Criteria
First, to hunt for tokens on DEXs, you need to have a wallet; Typically, people use MetaMask or TrustWallet. Three websites commonly used for token hunting on DEXs include dextools.io, defillama.com, dexscreener.com
Criteria for hunting new tokens listed on DEXs:
*Priority for trading with a significant flow of funds, such as the current focus on Arbitrum.
*New products or collaborations involving prominent Key Opinion Leaders (KOLs) on Twitter or backed by substantial funds.
*Listings on stable and large DEXs like Pancake and Uniswap.
*Not listed on major exchanges yet but with decent Total Value Locked (TVL), liquidity, and volume on DEXs, prioritized on liquidity.
*For long-standing projects, a market cap above $1 million is considered okay.
*Low recognition, market cap matches its potential.
*Innovative ideas that tap into mass psychology for FOMO (Fear of Missing Out), attracts funds, and designs that resemble Ponzi schemes, which can benefit those who know about them in advance.
*Riding trending themes in the market; not as profitable as core trends but still likely to experience some short-term growth.
*Research if there's potential for listing on Centralized Exchanges (CEXs) in the future.
Advantages:
*Early entry can yield good profits, and if later listed on major CEXs, it's even better.
*Skilled individuals can take advantage of liquidity pool price slippage, especially on the Polygon network.
Disadvantages:
*Requires some smart contract verification skills and strong research abilities.
*Not suitable for beginners or those not familiar with wallet operations and swapping.
*High risk and requires good decision-making as buying at the right price is crucial, or you'll provide liquidity to others.
*Requires the ability to price a project correctly.
Note:
*Thoroughly research projects; playing with new tokens could lead to one-way swaps if it turns out to be a scam.
*For new projects, consider inquire whether to buy at listing on DEX or wait until the project is established.
*Take profits when it's 2x-5x, especially when Key Opinion Leaders and the FOMO community are active.
*For older projects, holding or not depends on the project's plans for CEX listings. In this bearish season, holding without strong fundamentals may be challenging.
*DEXs mainly require ETH or BNB as gas fees, so ensure you have some.
*Pay attention to the project's launch and token release times; launching during a downtrend can result in strong selling pressure, whereas launching during an uptrend or recovery, especially during a recovery, may give the project some short-lived stability.
*Beware of scams and imitations, especially on DEXs; genuine projects have clear symbols, good volume, liquidity, and market cap.
*The market is currently in a recovery phase, so consider short-term or medium-term trading rather than holding for the long term.
II. Process
Recently, the AI and Arbitrum ecosystem trends have gained significant attention and funding. Here's how you can discover projects on Defillama:
First, when you identify that funds are flowing into the Arbitrum ecosystem, go to Defillama to check the TVL of some projects running on it.
Select projects based on the criteria mentioned above. For example, I used the JonesDaos project as an example. At this point, research the project following steps similar to those outlined by Le Ky (presumably an author or source).
Check a few essential statistics and then use DexScreener.com or Dextools.io to swap tokens to your wallet.
(Note: Keep in mind that investing in cryptocurrencies carries risks, and it's essential to do thorough research and understand these risks before investing.)