Security Tricks
Cryptocurrency Trading Security Tips
1. Always Check Token Standards
Minting Status: Be wary of tokens where minting is still open, as this allows the owner to create more tokens potentially leading to a dump on holders. Always refresh and double-check token details, such as on BirdEye.
Closure of Minting: If minting is closed, it means no more tokens can be created, reducing the risk of a sudden increase in token supply.
2. Holder Ratio and Creator
Token Distribution: Pay attention to the distribution of tokens. A high percentage held by the creator or certain addresses, especially with increasing value, can be a warning sign of a potential fake pump.
Risk of Dumping: High ownership by few addresses poses the risk of these holders dumping their tokens, leading to a rapid price drop.
3. Timers
Trade Start Time: While not always a negative sign, tokens with a countdown to trade start are often associated with quick rug pulls. Experience shows that such tokens may remove liquidity abruptly.
4. LP Burn
Burned Liquidity Notification: While a notification of burned liquidity might seem positive, remain cautious if minting is still active. This could be a strategy for a fake pump followed by the creation of more tokens to be dumped on the market.
Note: Trading on these signals for quick profits is risky. If you choose to take this risk, act swiftly but cautiously, and always be prepared for the possibility of a rug pull.
These tips are designed to help you navigate the complex world of cryptocurrency trading with a higher degree of security awareness.
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