General
Trade safe, trade smart, and enjoy!
In this previous article, we explained 8 useful trading strategies to make the most of the many powerful and versatile tools that DEXTools offers for DeFi trading.
Next, we’ll explain 10 things you should never do on DEXTools!
We offer you the best tools, but you also need to learn how to use them effectively and productively.
Navigating DEXTools.io can be thrilling, but it’s easy to make costly mistakes if you’re not careful.
DEXTboard in DEXTools App
10 things to avoid if you want to keep your funds safe and your stress levels low.
1-Buy Every Green Candle: Usually, FOMO from green candles leads to buying at very high prices. Waiting for corrections, dips, or doing DCA strategy always helps. Continuously buying every time the price goes up can lead to overexposure to an asset, increasing your risk if the market turns against you.
2-Don’t Research Token Socials: You should research the token’s social media accounts to see if it has an active community or if one is being built. Potential investors often rely on these links to verify the legitimacy of a project.
3-Don’t check our Audits: Do not buy without checking the external audits we provide in our Audits tab.
- There you will find all the information you need to trade safer. You will avoid buying Honeypots or tokens with the Blacklist function. If a token doesn’t have an audit, it could mean that its smart contracts haven’t been thoroughly examined for vulnerabilities, which increases the risk of exploits, hacks, or other technical issues.
4-Don’t check our Top Traders Tab: It would be useful for you to check the wallets with the highest PnL (Profit and Loss) in the token and the tokens they still hold (unrealized).
- This feature allows you to track wallets with the highest PnL and unrealized profits, often referred to as “smart money”. These are traders who consistently make profitable trades and may have a better understanding of market trends and timing.
- Following their moves can give you insights into potentially profitable trading strategies or upcoming trends.
5-Buy top Daily Gainers: Avoid buying a token with large price increases since its launch. Many tokens that appear as daily gainers may be part of pump-and-dump schemes. In these scenarios, a group of traders artificially inflates the price of a token by creating hype and buying in large quantities.
6-Trust Every Telegram Tip: Always cross-check Telegram tips. It helps you separate hype from reality by aggregating social media sentiment.
- Telegram groups give you direct access to the community surrounding a project. By observing conversations, you can gauge the overall sentiment, enthusiasm, and engagement level.
- A strong, active, and positive community often indicates a healthy project, while a disengaged or negative community can be a red flag.
7-Don’t check Gas Fees: Keep an eye on Ethereum fees with the Gas Tracker. Ignoring this can lead to higher fees eating into your profits. Gas fees are the costs associated with executing transactions on a blockchain, such as Ethereum.
- High gas fees can significantly reduce your profits, especially if you’re making multiple transactions or dealing with smaller amounts. It’s essential to consider these fees when calculating potential returns.
8-Ignore the Chart’s Timeframe: Customize your timeframes to get the full picture. Don’t get swayed by short-term fluctuations. Switching between different timeframes helps in building a comprehensive view of the market, but it requires consistency to avoid confusion.
9-Don’t Monitor Token Holders: You should check our holders tab. A few wallets holding most tokens can be a red flag. If a large percentage of the token supply is held by a small number of addresses, the token can become more volatile.
- These large holders have the power to cause significant price swings by executing large trades. Not monitoring this can lead to unexpected volatility and affect your trading or investment strategy.
10-Trade Without a Plan: Manage our User Area to keep your trades organized. Trading without a plan is just gambling. A trading plan provides a structured approach to trading by defining your goals, strategies, risk management rules, and criteria for entering and exiting trades.
Remember: the key to success on DEXTools lies in using its powerful features wisely.
- By staying informed and making data-driven decisions, you can enhance your trading strategy and maximize your potential profits.
- Use DEXTools intelligently and watch your investments grow!
- Remember to use our handy bots, like the Buy Bot, to help with your strategy. And watch out for scams! We talk about them in detail here.
We will keep you updated on our handy tools and everything related to the exciting world of DeFi.
DYOR and trade safe with us!
