Making money or earning with crypto are two of the most searched topics on the web in recent years. Searches have experienced parabolic increases in early 2021 as cryptocurrencies have become a mainstream investment now thanks in part to the strong performance of bitcoin, the cryptocurrency that kick-started this new industry back in 2009. BTC had broken its highs in December 2017, touching $20,000. Then, given the lack of institutional investment, there was a strong dump that brought its price down to $3,000. Now, however, many major players have joined this new technology, bringing the price to $60,000, resulting in free publicity for the entire crypto sector.
Things have now changed and alongside the well known classic exchanges like Binance and Coinbase, there are also decentralized exchanges where it is possible to exchange any token on the same day it is created. One example is Uniswap (or PancakeSwap). On Uniswap it is possible to make money with cryptocurrencies but to do this it is necessary to have a good understanding of how to proceed! And obviously, you need to avoid all the scams that are lurking around! Here is a simple guide to making money with Uniswap in 2021!
Uniswap and DEXTools – the winning combination
Whilst Uniswap is a more than perfect product, in our opinion it is not yet suitable for investors who are entering this world for the first time. That is why we recommend everyone to use the DEXTools.io app! A great app that for only $150 per month gives you everything you need to keep track of various cryptocurrencies that are only available on Uniswap. The app is also free of charge and the money I mentioned above is only required for a full version! Let’s see in a few steps how to find hidden gems on DEXTools and make money with Uniswap!
1) Open a page dedicated to some tokens on DEXTools, such as this one (link of IDLE, a project I like and have been following for some time).
2) You will now find yourself on an internal DEXTools page where you will have a lot of information about that token. In the case of the example linked above (IDLE), at the top near the logo, you will see important information such as the link to Etherscan (it’s very important to know the max supply of each project), the link to CoinMarketCap and various social links such as Telegram, Twitter and the official website. Below that there is the trade button that takes you to the trading page on Uniswap. Below that is the total liquidity of the pair, the daily volume and the number of holders. Sometimes the number of holders is shown incorrectly, so please refer to the Etherscan link for accurate data.
3) Now that you have everything you need in front of you, here are some useful tips: Only trade tokens that have at least 300-500 token holders; try to avoid projects with too low liquidity (below 150-200k USD); try to avoid projects with trading volumes close to zero and always take a look at the chart to see if there are any oddities in the project.
4) To find other interesting projects always follow the menu at the top, called HOT PAIRS. This is a menu where there are always the 10 most interesting tokens in real-time. These tokens appear in order of visits on their internal page, not by trading volume. Usually, the most interesting tokens arrive immediately in this menu and it becomes easy to find real gems!
5) When you see a newly added token with lots of interest, don’t buy it right away! The first few minutes are usually the worst, as some BOTs buy a lot of tokens from the most anticipated projects and then sell them to you at very high prices. In addition, each project has private presales and those who buy during the presales sell at prices 30-50 times higher… to you! After this initial pump, we then see an epic dump where you can buy the same token at ultra discounted prices. This is my favourite time to buy! If the project is good, the pump will be seen after 5-10 days thanks to the announcement of some partnership or some important listing!
6) Use the little star next to the trade button to add a project to your favourites. The free version of DEXTools unfortunately only offers 4 slots for favourites. This is why I have recommended buying the premium version straight away, as it has no limits.
7) To avoid following prices all day long, use price alerts via Telegram. This feature is only available in the ‘Standard‘ version of DEXTools which costs $150 per month. You can add as many favourites as you like and as many price alerts as you need. Whenever the price goes up or down to a price you have set, a Telegram bot will alert you immediately!
8) Avoid investing in sponsored projects on DEXTools. These are projects that have paid to be there, so they are not necessarily interesting projects. Doing a little research will tell you if a project is good or not!
If you have any other questions feel free to ask on our Twitter account or in the comments of this article! Happy trading!