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The Guaranteed Way to Avoid Crypto Pump & Dumps
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This is how you can spot crypto scams 👇🏼
One key factor to look at is liquidity. So, what exactly is liquidity? Every coin has a liquidity pool on decentralized exchanges that allows for the swapping of currencies.
For example, if we take AlexCoin versus USD, there's a pool with USD on one side and AlexCoin on the other. The value of the coin is tied to the amount of liquidity in the pool. The more liquidity, the less likely the coin is a scam.
A higher liquidity pool means the developers are investing their own money, which shows commitment and reduces the risk of exit scams.
Watching the liquidity pool not only indicates the coin’s legitimacy but also shows how invested the developers are in the project.
Recap: pay attention to the liquidity in a project. Trust me it will save you a lot more money.
One key factor to look at is liquidity. So, what exactly is liquidity? Every coin has a liquidity pool on decentralized exchanges that allows for the swapping of currencies.
For example, if we take AlexCoin versus USD, there's a pool with USD on one side and AlexCoin on the other. The value of the coin is tied to the amount of liquidity in the pool. The more liquidity, the less likely the coin is a scam.
A higher liquidity pool means the developers are investing their own money, which shows commitment and reduces the risk of exit scams.
Watching the liquidity pool not only indicates the coin’s legitimacy but also shows how invested the developers are in the project.
Recap: pay attention to the liquidity in a project. Trust me it will save you a lot more money.
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