*DYOR stands for "Do Your Own Research," which means conducting thorough research and analysis before making any investment decisions.
Investing in new cryptocurrency projects can be risky, so it's important to do your own research before investing. While it's impossible to have complete assurance on how a coin works without reading its solidity code, there are a few things you can do to reduce your risk.
Firstly, check for security audits and make sure they're legitimate. If a new coin hasn't been audited, you'll need to do your own research. You can also check the Telegram group to see if the number of members is manipulated. If a group has a large number of members but only a few are online, it's likely fake and should be avoided.
Next, look at the "Holder" tab on Etherscan to see what percentage of the coins the top holders have. If a wallet has more than 10%, it's risky because they could sell all of their coins, causing panic and decreasing the price. However, there are some exceptions to this rule, such as locked liquidity, a burning address, or presale wallets.
Aside from technical points, it's also important to look for a management and developer team that communicates transparently, an always-on website, and professionally managed social media accounts. By doing your own research and taking these steps, you can reduce your risk when investing in new cryptocurrency projects.
Please note that this article does not provide any financial advice.
Instead, it offers guidance on how to conduct your research before investing your money.
It is essential to be cautious and thorough when exploring investment opportunities to make informed decisions.