How to Avoid Losses on Venture Tokens?
Venture tokens can generate high returns, but they also carry high risks due to unlock schedules, speculation, and fund manipulations. To avoid losses, it is essential to analyze the project and consider key factors.
🔵 Check the Vesting Schedule
— Early investors sell assets after vesting, creating downward pressure on the price.
— Check how many tokens will be unlocked in the coming months.
🔵 How to Monitor Vesting?
— Use websites like TokenUnlocks, Messari, CoinGecko, where vesting schedules are published.
🔵 Analyze Demand and Fundamental Factors
— Verify if the token is essential for the platform’s functionality or just a speculative asset.
— Study the number of active users, trading volume, and real network activity.
— If most tokens are held by funds, they may control the price.
🔵 Evaluate Fund Activity
— If funds start taking profits, the token may experience a long-term decline.
— Track large wallet transactions (Whale Alert, Lookonchain).
🔵 Who Invested in the Project?
— Check if the token is supported by top-tier funds (a16z, Binance Labs, Paradigm).
— If the investors are questionable funds, the risk of a scam is higher.
🔵 Monitor Liquidity
— If trading volume is low, the price can be easily manipulated by large players.
— Ensure that the token is listed on major exchanges (Binance, Coinbase, Kraken).
🔵 Don’t Buy During Hype
— Be cautious of price pumps before exchange listings.
— Tokens are often artificially inflated before going public.
— After listing, the price may drop sharply due to investor sell-offs.
— Use dollar-cost averaging (DCA) and avoid investing the full amount at once.
🔵 Protect Your Capital
— Set stop-loss orders and secure profits.
— Lock in partial profits during strong price increases.
— Use a stop-loss to avoid significant losses in case of a sharp drop.
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