1/ Investing in crypto can be rewarding, but avoiding sudden dumps is key to protecting your portfolio. Hereās how to stay ahead and not become exit liquidity.
2/ Avoid Hype-Driven Pumps šØ
If a token is trending due to influencers or sudden FOMO, be cautious. Price surges without strong fundamentals often lead to sharp dumps.
3/ Check Tokenomics & Unlock Schedules š
ā¢ Low float, high FDV (Fully Diluted Valuation) projects often see major dumps as vesting unlocks happen.
ā¢ Check if insiders hold too much of the supplyāif yes, they could dump on retail.
4/ Beware of Low Liquidity š§
ā¢ Tokens with low liquidity are easily manipulated.
ā¢ A few whales can pump the price and then rug-pull.
ā¢ Always check liquidity depth on DEXs before buying.
5/ Monitor Large Wallet Movements šµļø
ā¢ Use tools like Etherscan, Debank, or Nansen to track whale wallets.
ā¢ If early investors are offloading their holdings, itās a red flag.
6/ Exit Before Major Events ā³
ā¢ Many people buy into hype before big events (e.g., exchange listings, product launches).
ā¢ Smart money sells into the pump. Consider securing profits early.
7/ Beware of Overleveraged Markets ā ļø
ā¢ If funding rates are too high, a liquidation cascade could cause a major dump.
ā¢ Avoid getting caught in a leverage wipeout.
8/ Stay Away from Projects with No Real Utility š«
ā¢ Memecoins and hype projects can be fun but rarely sustain their value.
ā¢ If thereās no long-term vision or innovation, itās just a game of musical chairs.
9/ Secure Profits & Use Stop-Losses ā
ā¢ Donāt be greedyāsecure profits along the way.
ā¢ Set stop-losses to avoid being wrecked if the market turns.
10/ DYOR & Stay Updated š§
ā¢ Research team backgrounds, partnerships, and real-world use cases.
ā¢ Follow on-chain analytics & project updates.
Final thoughts: Crypto is volatile, but with the right strategy, you can minimize losses and avoid getting dumped on. Stay smart, stay safe. š
What other tips do you use? Drop them in the comments! ā¬ļø