Part 5/7:
Before diving into investments, verifying the legitimacy of coins is paramount. The trader offers practical pointers on distinguishing genuine opportunities from scams. Using indicators such as the percentage of insiders in a project, the ownership of tokens by developers, and historical data of websites associated with these coins can provide invaluable insights.
Moreover, to enhance risk management, it’s advised to make small trades instead of placing large amounts into single investments, as many deals may falter. The strategy suggested is to be prepared to accept losses while remaining cautious enough to seize opportunities that provide the potential for significant returns.