The pseudonymous host of Coin Bureau is outlining his methodology for how to spot potentially parabolic altcoins early.
In a new video, the trader says tells his 372,000 YouTube subscribers he’s exploring crypto assets running on Binance Smart Chain (BSC), which is experiencing a surge in popularity.
One tool he’s using is DeFi Station, which lists various coins and protocols and tracks whether the code for each asset has been audited. The crypto strategist stresses that just because a protocol has been audited, it doesn’t guarantee that it’s safe to trade.
The top coin on DeFi Station at the time of writing is Venus (XVS), which is a decentralized stablecoin lending protocol. Beneath Venus is the decentralized exchange PancakeSwap (CAKE), which is similar to Uniswap but lists BSC tokens.
Coin Bureau notes that many projects on DeFi Station have already received a lot of attention and gone through substantial bull rallies, meaning that the chance to ride a 100x rally has probably passed. Because of this, he also points traders toward the Yield Farm section of BscScan.
“To find the 100xs, your best bet is to check the Yield Farm section of BscScan, which is a shameless copy of Etherscan for the Binance Smart Chain. While there are only 25 projects listed on DeFi Station, there are nearly a hundred noted on BscScan.”
Coin Bureau notes the high-risk nature of the DeFi (decentralized) market and says it’s up to traders to do their own research.
“Although some of these projects have already been labeled as possible rug pulls, there is no way of knowing whether that designation was made by a competing project. That means it’s going to be on you to figure out whether these up-and-coming CeDeFi (bridging of centralized and decentralized finance) protocols are rug pulls or not…
Once you’ve identified a CeDeFi token that looks promising, the next step is to buy it. Most of the time, the CeDeFi token you’re looking for will only be available on PancakeSwap and possibly a few sketchy centralized exchanges that you should stay away from at all costs. If the CeDeFi you’re looking at has already listed on a reputable exchange like Binance, it probably has its most extreme gains behind it already.”
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/wacomka