Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: TradeCoinD2 on September 14, 2023, 04:22:51 AM
-
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.)
-
Investing in tokens on decentralized exchanges (DEXs) involves a few key steps:
Select a DEX: Choose a decentralized exchange such as Uniswap, SushiSwap, or PancakeSwap based on the blockchain you're using (Ethereum, Binance Smart Chain, etc.).
Connect Your Wallet: Use a wallet like MetaMask or Trust Wallet and connect it to the chosen DEX.
Research Tokens: Investigate and choose tokens announced on the DEX. Look into their fundamentals, use cases, and community support.
Provide Liquidity or Swap: You can either provide liquidity by depositing tokens into a liquidity pool or directly swap one token for another, depending on your investment strategy.
Set Slippage Tolerance: When swapping, set slippage tolerance to account for potential price fluctuations.
Confirm Transaction: Review and confirm your transaction. Be aware of gas fees, especially on networks like Ethereum.
Always conduct thorough research and exercise caution when investing in decentralized exchanges.
-
Investing in tokens on decentralized exchanges (DEXs) involves a few key steps:
Select a DEX: Choose a decentralized exchange such as Uniswap, SushiSwap, or PancakeSwap based on the blockchain you're using (Ethereum, Binance Smart Chain, etc.).
Connect Your Wallet: Use a wallet like MetaMask or Trust Wallet and connect it to the chosen DEX.
Research Tokens: Investigate and choose tokens announced on the DEX. Look into their fundamentals, use cases, and community support.
Provide Liquidity or Swap: You can either provide liquidity by depositing tokens into a liquidity pool or directly swap one token for another, depending on your investment strategy.
Set Slippage Tolerance: When swapping, set slippage tolerance to account for potential price fluctuations.
Confirm Transaction: Review and confirm your transaction. Be aware of gas fees, especially on networks like Ethereum.
Always conduct thorough research and exercise caution when investing in decentralized exchanges.
⚠️ Publishing text written by an AI bot is a type of plagiarism. Anyone who is interested in the bot’s opinion can ask the bot a question himself, so there is no need to publish the bot’s texts on the forum.
-
Can you give a practical application for your ideas? The tips you mentioned are excellent and may be very useful for beginners. I rely on the news and searching for the project, as I consider randomly searching for a project without knowing the name to be more of an adventure, but your strategy is good in determining token hunting on DEXs.
The problem with liquidity always remains that it is difficult to predict and the probability of listing cannot be known.
-
When I was really active with the buying and selling of altcoins, my friend introduced me to the Coingecko site, which has a section for newly listed coins. You can see the image below. Coingecko is also a coin tracking site, and from experience, it is very active, but the risk with altcoins is that you can never predict the success of any newly listed project. I still vividly remember some coins that I discovered and bought through the Coingecko site; most of those coins are now dead.
Investing in altcoins through the process you are describing doesn't mean that an investor can actually be lucky to meet great projects that will be profitable to him all the time; there is a chance of experiencing losses too.
(https://www.talkimg.com/images/2024/01/16/3LCIl.jpeg)
(https://www.talkimg.com/images/2024/01/16/3LnHT.jpeg)
-
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.
Often with newly launched projects they list on Decentralized Exchanges. It is also very expensive to be listed in CEX, so usually their first destination is DEX. That's why we can see the big potential projects that can make a lot of money here because the volume is very small. When the time comes for them to list on CEX, the volume will probably increase which will result in a big price increase.