Shitcoin Survival Guide: 4 Quick Tips On Navigating The Wild West Of BSC Microcaps
As seasoned crypto veterans, we BSC Chads bear the scars of many a battle lost against shitcoin scams.
Whether that was aping in early to a pre-sale with no website, or depositing a farming stack into a food farm fronted by a cartoon kebab — we, like you, are no stranger to falling victim to shitcoins.
Fortunately, however, it is due to these past trials and tribulations that we are now able to bring you this guide.
Follow this humble advice and perhaps your portfolio may avoid suffering the same torrid fate.
As always, none of the tips below remove your obligation to DYOR, but following these tips will certainly make your journey in BSC more profitable in the long-term.
1. Look for obvious red flags
Of course — in nearly every scam — there are some outsiders who turn a quick profit before the rug is pulled.
However, eventually this strategy will catch up with you.
It may be frustrating passing up on a red flag ridden project that subsequently goes to the moon — but trust me, it is a lot more frustrating losing your shirt aping into a coin you knew was dog dookie from the start.
Some of the most important red-flag checks would be if:
- It is holding a huge presale despite there being no reason for a large capital raise (e.g. the product is a shitcoin with a vague roadmap and/or no major development objectives).
- The community admins in their social channels can barely string two coherent sentences together.
- The website/materials are of low quality (littered with typos, hyperlinks to null addresses, branding is copy-pasted from another project).
The above is not a comprehensive list, as there are truly too many to count. We suggest that you make your own lists (mental or, if needed, scribble them down) to update over time and serve as a quick checklist before entering a new project.
Of course, your chances of coming across a red-flag ridden project is significantly reduced if you surround yourself with others who are equally diligent, which leads me to ask…
2. Who told you about it?
When evaluating the credibility of information, there is nothing more important than its source.
Imagine you are a news outlet — which typically categorises their sources into tiers of reliability.
- A known insider may be considered a top tier source — and therefore a tip that they give is sufficiently reliable information to run a front page story.
- By contrast, a random person calling in off the street would be the lowest tier of source — and information provided by them should generally be ignored or — if anything — investigated further and corroborated by consulting with higher tier sources.
The same is true in crypto. You should focus on building a network of top tier sources (such as our BSC Chads channel) so that any tips that do come your way can be acted upon in confidence. We cannot overstate the value of reliable information flows.
By contrast, random shillers in large public discussion forums (e.g. Infinity Gainz) are invariably low tier sources and should be treated with the utmost caution.
In short — make sure you are receiving information from channels and individuals with proven track records. This does not remove your obligation to DYOR, but it reduces your aggregate risk over the long run.
3. Stop trying to buy the bottom or sell the top
Yes, being first in the door is theoretically optimal for maximising profit margins should things work out.
The operative word in that sentence is “should”.
By taking time to evaluate a project properly and perhaps letting others test the waters, you will very often spare yourself from throwing your gran’s mortgage fund into a contract with the withdraw feature disabled, or a quick “in and out” rugpull.
In general (this is not limited to microcaps) — you should abandon the notion of buying the “bottom” or selling the “top”. Whether you are entering or exiting a position — risk management is key.
Of course, that is not to say that you should sit about twiddling your thumbs. Always conduct your research with the utmost speed so as not delay a good entry any longer than required (which we at BSC Chads intend to help you with).
However, do not skip the usual diligence in order to chase fractional gains whilst placing 100% of your invested capital at risk.
Which takes me to our next point….
4. Often the best trade is to do nothing at all.
We’ve all been there.
Your private groups are bouncing.
That fucking annoying guy who has been on a hot streak recently is spam price checking his latest shitcoin and flooding your screen with “30 Day: 285% 🔥” returns.
You feel your blood pressure start to increase.
This shitmuncher is making money hand over fist whilst your portfolio crabs for weeks on end?
You see a new listing pop up on BSC Scan.
Fuck it — aping 30 BNB.
…. aaaaaaaaaand it’s gone!
The “everyone is getting hilariously rich except me” mentality is often overlooked.
This type of thinking will inevitably lead to over trading, or adjusting risk tolerances lower than your rational brain would ever ordinarily allow.
In short — you begin exhibiting the hallmarks of “emotional trading” (e.g. making investment decisions based on your own subjective feelings rather than on objective analysis of the relevant investment). This is never a good strategy.
Do not blindly ape into a new listing because you have not had a “win” in a while. Remember, this trade does not take your trading history into perspective.
Your portfolio having a red month is not a reason to enter a trade full of red flags. In fact, this is even more reason to avoid it.
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If you missed our earlier guide on sniping contracts — we recommend you check that out here.