Solana is currently the most active platform for small-cap trading. This success is based on the low transaction costs. It is characterized by a plethora of options with several hundred new tokens available daily. Some see their value multiply quickly by 5, 10, 100, or even more. However, most are simple scams.
To maximize your chances of growing your trading capital on Solana, it is crucial to carefully select the tokens you invest in. There is no miracle method, but by following a few simple steps, you can avoid the biggest pitfalls.
1- Monitor new tokens on Dexscreener
https://dexscreener.com/new-pairs?rankBy=pairAge&order=asc&chainIds=solana&minLiq=1000&maxAge=1
This URL displays Solana tokens created within the hour and showing liquidity greater than $1,000. Click on the token that interests you and copy the contract address. You can do this easily by right-clicking on the token name and selecting the option to copy the contract address.
2- Scan the contract on Birdeye
Paste the contract address into the search bar on Birdeye: https://birdeye.so/ The contract is instantly scanned, and important elements to check are categorized under “Security.” Priority checks include:
- Mintable: If this box is red, it indicates a very high risk of scam.
- Ownership Renounced: A red box here also signals a very high risk of scam.
- Freezable: The ability to freeze tokens is sometimes activated, which is another strong signal of a possible scam.
Sometimes, “Mintable” and “Ownership Renounced” are green. The contract seems valid, but one last element needs verification: the number of tokens held by the creator (“Token Percentage of Creator”). When the developer holds 90% of the tokens, there is a clear indication of a high risk of scam or price manipulation. Although the creator’s token ownership is not a systematic scam signal, it is a factor to consider and analyze based on the percentage held.
In addition, even if it’s only an indicative factor without conclusive evidence, it’s interesting to check for the presence of “red flags” in the rating elements on Dexscreener. You can also search for the token name on Twitter to see what information comes up. Now you’re equipped to minimize the risks of scams on Solana – happy trading!
The proportion of scams on Solana is quite significant. If you’re interested in sharing information about good tokens to invest in, you can join the KnightsOfBitcoin Telegram chat.