I believe most of us are aware of the decentralized exchange (DEX) platforms. For those who is just coming across Dex as an information, Decentralized Exchange platforms provides the privilege of trading without any need for KYC (Know Your Customer) or Verification with mininal or no intermediary and regulations.
Before I proceed, please be informed that Dex Trading carries a lot of risk, but for this tutorial we are all looking towards how to mitigate unwanted or unprecedented loss.
Further more I want to outline the requirements:
For Security:
+ Math Wallet:
I recommend mathwallet because it is secure and contains almost all chains with access to bridge coins or tokens across these available multiple chains on math wallet.
For efficiency:
+ Trust Wallet:
Trust Wallet is widly known and used plus it's also a cross chain that supports most EVMs chains and Solana. Downsides is it little vulnerability which you don't have to worry about coz it's still a concealed 0day.
+ DexTools.io or DexScreener.com
Depending on our choices, We have bunch of Dex listing, chatting & trading tools online.
+ Rug | Honeypot Project Checking:
For Solana Chain: rugcheck.xyz
For BNB Chain (EVM): honeypot.is
For Other Chains or to Check For Other Checker Online Using Search Engine:
Example:
ETH Rug OR Honeypot Checker. You I'll get bunch.
+ Web3 Wallet Antivirus/Security:
web3antivirus.io or de.fi/sheild
Web3antivirus is web browser extension for desktop while de.fi is can work either or both desktop or on mobile. I believe this is important secure and protect both our wallets and our interaction with the Web3 space.
It's also important to have in mind to utilize native antivirus or anti-malware weather you are using desktop or mobile. But please have in mind that we are the first point of contact when is comes to securing our cyber engagements so using antivirus or anti-malware does not guarantee our cyber security 100% as there are tons of zero day exploit hunters around the globe looking for undetected exploits across cyber infrastructures. You can research zero day or 0day exploits online for better understanding.
Let's five further.
DexTrading Platforms:
+ For BNB or BSC Chain:
PancakeSwap.finanace or KyberSwap.com
+ For Solana Chain:
jup.ag or raydium.io
Wallet Setup:
Open mathwallet app on your phone or desktop:
Tap the Blockchain that you want to trade in the list of available chains, if it is not available, tap the + icon (this also means add) and search for example:
+ BSC or BNB Chain
+ Solana
Then tap the activation thick icon to add to list. Now you can select he chain after adding and tap:
+ Add Wallet, then
+ Create Wallet
Enter the wallet name you want then password that you can remember then,
Backup your wallet. You can either back up to your connected google account drive or select the private backup option to write it down. I recommend using private option for security reason. Confirm your backup by tapping it on your 12 phrase on your screen in order as listed in previous backup screen.
Now let's proceed:
As stated before our aim is to mitigate unwanted, unprecedented or potential loss, suppressing our chances to rug or scam coin. In this type of trading, the trading type is not important to make safe profit.
PATIENCE & CONCENTRATION IS THE KEY HERE, ESPECIALLY FOR BEGINNERS. PLS DON'T CHASE MAKING SNAP OR QUICK PROFIT. OUR DESTINATION IS MAKING SAFE PROFITS WITHOUT COMPROMISING OUR INVESTMENT CAPITAL. I CAPITALIZED THIS BECASUE IT IS IMPORTANT.
We get started by visiting:
DeXScreener.com or DexTools.io
Once on page, we should get a bunch of coins with their trading activities listed. Now we have to use the search filter to index list of coins that suits our aim using the list of highlighted parameters below:
+ Chain: This can be any Blockchain you wish to trade that you must have setup and funded on math wallet. For Example:
Caution: It is important that before you approve a swap or trade, make sure that you double check the issued fees to avoid loss of funds paying excessive fees due to price impact.
+ Liquidity: $400k - $25000000
This liquidity range will help us filter coin with enough liquidity, making the coin easy to trade or swap anytime we reach our profit target.
Caution: Bad coins can also be within this radar due to fake pump or intentional price inflation. I will explain how we can avoid short liquidity inflation by confirming liquidity.
+ Pair Age On DexScreener.com:
Minimum of 504 Hours, Leave the Max Blank.
OR
+ Pool Created On DexTools.io:
More Than 21 Days
Coin within this radar helps us suppressing our chances of getting rugged due to dumps by 65% - 70%.
+ Social Network:
This is a filter feature that is not available on Dexscreener.com, you can only see if there is social network page link associated to the coin on DexScreener coin page when you tap on or select the coin, but it's available on DexTools.io. It's generally believed that the reliability of a token or memecoins can be accounted on use case and community engagements on social network. You can choose to hide coins without social network. While this is not important to some people I'd recommend using this option to hide coins or token without social media.
Once you have appropriately used the hilighted filter options as indicated, click or tap the search, filter or apply button to apply these settings.
Now we should have a tabular index of coins or tokens within the rules of our filter. Now we need to sort our indexed coins or tokens by volatility in ascending or descending order. We can achieve this by toggling on the Volatility column to either sort in ascending or descending order.
Our volatility range target is:
3 - 0.4 or Less than > 3
Select Gainers within 1hr, 6 and 24 hrs.
If you want to use Loosers 6hrs and 24hrs are recommended. Pls note: Trade loosing coins or token for the day only when you confirm bulish trend.
Other Trade Lookout:
I think it's important to recommend other things that we should be looking at before selecting a coin or token for trade after sorting indexed coins or tokens by volatility.
Rug | Honey Pot Checking:
Using the listed rug or honeypot checker above we can determine if a coin or token is safe. You can read further online about rug and Honeypot checking. If you decide to trade BNB or BSC coin or token, please stay away from coins or token with closed smart contract source code.
Through Honeypot.is check if holders can buy and sell. As it will be indicated.
Key Takeaway:
Avoid Coin or Token (Smart Contract) with:
+ Freeze Authority Enabled (Means token or contract deployer can suspend or freeze a their token holders from selling it after purchase.
+ Mutable (Means contract is modifiable or can be change)
+ Sell or Buy Tax Modifiable (Means that token or contract deployer can change the buy and sell tax; with this properties enabled, token or contract holder can increase sell tax ranging from 1% to 100% with in effect prevent token or coin holders from being able to sell the token or coins after purchase or getting less amount to the actual amount of the token or coin when selling).
Liquidity confirmation:
Confirm liquidity by copying and pasting coin or token contract address on search engine. This will index other Dex platforms where the where the coins or token has been listed or where it's available for trade. With this we can cross check if coin or token liquidity is the same amount on all platforms. If the coin or token indicate locked on Dex listing platform, this can also help us confirm it validity.
After selecting the coin or token from the sorted list:
Use technical indicators such as:
+ MACD
+ EMA (Moving Average Exponential)
Without forgetting:
+ Support & Resistance Zone or
+ Demand & Supply Zone
+ Wave, Candle Stick and Chart Pattern
To confirm trade entry.
Buy & Sell Activity:
On DexScreener or Dextool coin or token page, check buy and sell activities in all time frames. There should be more buys than sells in: 5mins, 1 & 6 hours respectively on the selected coin or token page.
I suggest going with token that is 10% - 20% from All Time Low in confirmed bulish trend. And also avoid trades with low volumes.
Make sure to confirm on daily, weekly or monthly time frames charts that the coin or token is close or at it deep before purchasing.
The key of the approach is finding trade opportunity within markets with high liquidity and less volatility to mitigate possibility of high price fluctuations within a short period of time that can lead to potential loss.
This article is based to share the fundamental recepie to safe, slow and steady profitable Dex trading based on my personal experience, not AI Generated in hope that we all find it helpful.
If there is something missing that can be contributed please leave it in the comment section of this article.
Pls DYOR as this is not a financial advise.
Kindly like and share with other if you find this information helpful.
đNamasteđ
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