Key Takeaways
- Token sales remain lucrative, with a high profitability potential of 100 times if done correctly, accompanied by effective risk management.
- Knowing the different token sales you wish to participate in would eliminate a lot of certainty.
- Research on token auditing, teams, social presence, and active communities are signs of real token sales.
Degen traders, at some point, all dream of buying into a token sale with $100, hoping for a 120,000% return with the possibility of buying the next Lamborghini or booking the next flight to Bali, and chilling at a beachfront resort, enjoying the easy win.
But here is the twist many crypto OG never share with us. Behind every 10X token sale pump, there are ten thousand rugs, bot wars, gas wars, and the famous “I just sent USDT to a fake address.”
How can degen traders identify token sales without screwing it up? Let’s dive in to explore the step-by-step guide on how to engage in token sales without screwing it.
1. DYOR (Do your own research)
This term is used more frequently in the crypto space to conduct due diligence on a particular project before investing, thereby avoiding sending money to a scam crypto project.
This requires a degen trader to do the following:
- What is the project about
- The team behind the crypto project and sales
- Is the whitepaper making sense with a strong use case?
- How long has the team been in the crypto space
- Has the auditing for bugs and fishy code base been carried out?
- Is tokenomics giving 65% of tokens to the team? This is a red flag
- Do they have a genuine online presence, like X and Telegram, with real humans, not bots?
2. Token Sale Type
There are several ways to fumble a token sale, especially if you don’t have an idea of what you are dealing with. There are different token sales and its idea you know exactly what you are getting involved with, such as:
- Launchpads – Carried out by trusted platforms and require KYC with a fixed timeline.
- Fair Launches – These token sales have been conducted by many crypto projects on a first-come, first-served basis, with degens sometimes competing with bots.
- Whitelist – This is based on the application, and if you are shortlisted and an allocation is given, you can participate in the token sale. Also, this may require active participation in Discord or Telegram communities.
- Presales – Presales could be carried out on the project’s website or a trusted website like PinkSale, allowing users to participate in token sales.
3. Wallet
A separate wallet should be dedicated to token sales to minimize risk. The following wallets, such as Phantom Wallet on Solana or MetaMask for EVM chains (Ethereum, Arbitrum, etc.)
4. Fund Wallet
Fund your wallet with the right base token, such as SOL, ETH, USDC, or any other required funds for the token sale.
Avoid funding your account directly from a centralized account; transfer funds to a decentralized wallet before sending them to the wallet designed for token sales.
5. Risk Management
The crypto space is an unforgiving place for recklessness, and as a result, it’s advised to risk what you can afford to lose.
Never risk your life savings for a 150X potential, and always be on the lookout for suspicious behavior from team members and influencers to avoid being used as exit liquidity.
Conclusion
Token sales are highly lucrative, considering their potential for profitability. But stay sharp and think like a sniper.
Ape responsibly and WAGMI.
Other Read
WTF is a Memeconomy? And Why it Matters
Memecoins with Real Communities vs. Pump-and-Dumps
Are Airdrops the New Token Sales? Here’s What You Need to Know
