1/ Investing in crypto can be rewarding, but avoiding sudden dumps is key to protecting your portfolio. Hereâs how to stay ahead and not become exit liquidity.
2/ Avoid Hype-Driven Pumps đš
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 đ
âą Low float, high FDV (Fully Diluted Valuation) projects often see major dumps as vesting unlocks happen.
âą Check if insiders hold too much of the supplyâif yes, they could dump on retail.
4/ Beware of Low Liquidity đ§
âą Tokens with low liquidity are easily manipulated.
âą A few whales can pump the price and then rug-pull.
âą Always check liquidity depth on DEXs before buying.
5/ Monitor Large Wallet Movements đ”ïž
âą Use tools like Etherscan, Debank, or Nansen to track whale wallets.
âą If early investors are offloading their holdings, itâs a red flag.
6/ Exit Before Major Events âł
âą Many people buy into hype before big events (e.g., exchange listings, product launches).
âą Smart money sells into the pump. Consider securing profits early.
7/ Beware of Overleveraged Markets â ïž
âą If funding rates are too high, a liquidation cascade could cause a major dump.
âą Avoid getting caught in a leverage wipeout.
8/ Stay Away from Projects with No Real Utility đ«
âą Memecoins and hype projects can be fun but rarely sustain their value.
âą If thereâs no long-term vision or innovation, itâs just a game of musical chairs.
9/ Secure Profits & Use Stop-Losses â
âą Donât be greedyâsecure profits along the way.
âą Set stop-losses to avoid being wrecked if the market turns.
10/ DYOR & Stay Updated đ§
âą Research team backgrounds, partnerships, and real-world use cases.
âą 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. đ
What other tips do you use? Drop them in the comments! âŹïž