When it comes to investing in the world of cryptocurrencies, it’s crucial to do your own research (DYOR) to ensure the safety of your funds. With the increasing number of scams and rug pulls in the market, taking the time to thoroughly assess a project before investing is essential.
One of the first steps in DYOR is to scan the contract address using reliable bots. Some recommended bots include:
- ttfbotbot: This bot helps identify external contracts, a common tactic used by scammers. Pay attention to any changes made after reaching a certain market cap.
- PirbViewBot: Use this bot to analyze the bubblemap and check if tokens have been sent to multiple wallets, indicating potential manipulation.
- My_Quicki_Bot: This bot provides insights into what developers can do after the contract is renounced.
- ProficyPriceBot: Use this bot to check the RUG ratio, which indicates the likelihood of a rug pull.
- DexLordBot: This bot offers various information, including internal lord score/ratio, which can be helpful in assessing a project.
Once the contract check is complete, it’s important to evaluate the project’s community. Look for active and engaged members, and ensure that the team is not a one-man show. Avoid projects with suspicious team compositions or bot-filled chat groups.
Next, thoroughly examine the project’s website and social media accounts. Verify that the links on the site are legitimate and check for signs of bot activity. Additionally, assess the team’s level of activity and involvement.
When analyzing the project’s chart, pay attention to the Dextools score and observe how the market cap responds to an increase in the number of holders. Stable market cap growth alongside a rising number of holders may indicate farming activities.
For projects called on the VaultBoy portal, consider following these additional steps:
- Check the “Road to 100X” topic and monitor the project’s market cap growth.
- Verify if a scan report is available for the project. Projects without a scan report require manual DYOR.
- Focus on the trending topics for popular cryptocurrencies like ETH, SOL, and TON, but only DYOR on those that have multiple buys and significant hype.
Lastly, it’s recommended to secure your initial investment by taking profits at 2-3X returns unless you are confident the project is SAFU (safe and secure). Remember that even seemingly clean projects can turn out to be high-level scams.
By following these steps and conducting thorough research, you can make more informed investment decisions in the volatile world of cryptocurrencies.