The majority of new traders do not know the proper DexScreener sniping strategy, and they lose money when they first start trading on DexScreener. When a new person opens DexScreener, they see hundreds of coins moving up and down, so they are unable to decide which coin to buy.
Helpful Tips For Buying Coins On DEXs
Choose older coins that have a strong team and long-term vision
Old coins that have already experienced the ups and downs of the market are usually considered safer.
A coin does not automatically become safe just because it is old. You should also evaluate the team behind the project to determine whether they are experienced, dedicated, and putting their best effort into it. You should also check whether strong investors or whales support the coin with large portfolios.
Now the question arises: how can we learn about the team and their commitment to the project?
You can find this information by checking their website and social media platforms. You can also review their social media activity to determine whether they are genuinely committed to the project or not.
If you find a coin that you believe has the potential to grow, do not invest your entire portfolio in it. Invest only 20% of your portfolio in a single coin because the crypto market is full of opportunities, and you may find a better coin at any time.
Avoid Coins with Low and Unlocked Liquidity
If you see a coin with a very large market cap but very low liquidity, you should avoid buying it. Liquidity represents the amount of funds available for trading and withdrawals.
For example, if a coin has a $1 million market cap but only $10,000 in liquidity, it means there is very limited money available in the liquidity pool, making it difficult to sell large amounts without significantly affecting the price.
If liquidity is unlocked, then you should not buy that coin because the owner or a big whale can easily sell their coins and pull out all liquidity in one order, and the coin will suddenly fall from the sky to the ground.There are a lot of memes made about it in which you see a big red candle coming down from laptop.
Avoids Coins With A Large Percentage Held By The Team
In the crypto market, there are many coins whose supply is only 10% to 50% in circulation, while the remaining is locked by the team. You can check this by going to the coin’s information page, where you can easily find how much supply is in the market and how much the team is holding or has locked.
According to my view, these coins are not safe because the team usually sells their coins at different intervals, which has a negative effect on the coin’s price. So, always buy a coin that has 100% circulating supply or a coin that has at least 80% to 90% circulating supply.
Refrain From Buying Duplicate Coins
When a coin pumps on DexScreener and starts trending on the 6-hour, 1-hour, or one-day chart,people start making duplicate copies of that coin.
You will often find many coins with the same name. Many people fall prey to scammers duplicate copy coins.
When you hear about a new coin, don’t rush to buy it quickly. Do your proper research and find its contract address, which you can get from their official website or official social media platforms. Always double-check the contract address before buying any coin.
How to Choose a New Coin on Dexscreener
Lots of traders want to buy a newly listed coin on DexScreener so that they can make massive gains, but they cannot decide which coin they should buy.
Few Tips for traders:
- Buy coins with a popular or trending narrative. New trends often survive in the market because people are constantly engaged with them, which helps them reach more people and encourages more people to invest in them.
- Gather information about the creator or team of the coin and how their previous coins performed. If their previous coins performed well, then there is less chance that this project will fail.
- If there is only a single creator, you should not buy that coin if the creator is holding more than 10% of the supply because that person can easily manipulate the chart.
- Before buying any new coin, check its chart first. If it has already increased 5x to 10x from its listing price within a few hours, do not buy it, because early investors usually start selling after making 5x to 10x gains, which can cause the price to drop and lead to losses.
- If you are buying a coin that was made on https://pump.fun/, then you should open pump.fun and closely monitor the chart there because the chart on DexScreener and pump.fun may differ at the initial stage, and you can also gather more data about the coin on pump.fun.
- Always buy a coin whose creator authority to mint coins has been locked and the coin has no issues. You can check this on DexScreener in the coin info section.
- The coin creator must have an official account on X or other social media platforms, and must be a socially active person. The creator should also have some followers because community matters a lot in crypto.
Disclaimer
The above given tips are the opinion of my team; it is not a financial advice. So if you are planning to invest in cryptocurrency, always do proper research because cryptocurrencies are highly volatile and you can easily lose your money.