I have been a small coin trader for a few years. At first, like everyone, I fell for many scams, but I learned from each loss and now I have good results. Yes, I have losses, but I usually manage to come out with minimal losses compared to my gains.
Rules for finding true GEMS:
1. Start on networks like Binance Smart Chain $BNB (BSC), Solana $SOL , Tron $TRX and other new growing ones. Transaction fees are much lower than on the Ethereum network.
2. For the first 1-2 months, do not invest more than $5 per coin. Although your profits will not be exorbitant, this approach protects your capital in the initial stage.
3. Keep a small fund of about $150 or $200 and assume you could lose it. If this keeps you awake at night, then this type of investment is not for you.
How to find the GEMS:
1. Check the number of holders. In a healthy coin, the main holders should be the liquidity pool and a burned coin wallet, like "0x0000...dead". Avoid coins with many large holders or with less than 200-300 initial holders.
2. Liquidity pool. Prefer coins with a liquidity pool of at least $30k, as it is less likely that scammers have such high funds locked for a significant amount of time (minimum of 3 months to 1 year).
3. Transaction volume. A growing coin should have at least 5-10 transactions per minute.
4. Website and social media. Make sure they have a website and at least one Twitter account. If they also have a Telegram or Discord channel, even better.
5. Coin name and design. Avoid coins with unattractive names or low-quality design.
6. Visible team. If team members publicly show their faces, it reduces the risk of fraud.
Remember, always follow these recommendations from experienced traders, and never invest more than you are willing to lose.
If the coin you researched failed any of the first 5 steps: ABORT IMMEDIATELY. Do not invest in it, as you will lose your money.
If it passes all the previous steps, great! You may have found a gem. Do more research before investing and ensure that the coin has a real purpose. Remember, 'hodling' just to get more coins or go 'to the moon' are not solid purposes.
Golden rules for investing in new coins:
1. Invest only $5 per coin in the first 1-2 months while you learn and adapt. Even if a coin meets all the criteria, it can fail. It is normal to lose something in this process, but this minimizes the risks.
2. Once you master these steps and learn from your mistakes, you can increase the investment to $10 or $20 per coin, depending on your financial situation.
Two final tips:
New coins take time to take off: It is normal for a $5 investment to drop to $3 or rise to $10 and then drop again. It can take days without moving; this is part of the process.
Monitor the team behind the coin: If the team does not update its holders every 2-3 days, sell it and walk away. A good team should maintain constant communication through various channels.
Following these recommendations from experienced traders can be a lot of work, but it is essential for improving your success.
I hope this guide helps you start winning in the chains by trading tokens.
If you have any questions, feel free to ask me.
