There Are Ways To Protect Yourself From Investing In Tokens That Are Completely Scams

In the last bull run we saw the creation of tokens being a huge trend, every meme token was being bought with an expectation of big profits. The number of tokens that were a scam or a trap for investors is gigantic. Today, in a bear market we still see some new tokens created, but there's a need to be carefull when buying these tokens.

There are a number of different ways to scam investors, these tokens can be programmed to not let the user sell them, trapping the users money, a relatively known token for doing this was Squid. Another way to scam investors is a token that has the fuction to mint more tokens, this can lead to the so called developers, selling the tokens at a higher price and dumping more tokens on the market afterwards, putting investors forever in a loss. There's even more things that can be done to trick investors, being able to retrieve the token from other wallets, changing balance in other addresses, the token having a function to self-destruct or even having a tax for selling them.

There are ways to avoid investing in a token like this, the majority of people can't read a smart-contract, but there are some tools that analyze the token smart-contract and let the user know what is hidden behind the smart-contract code. Tools like tokensniffer or gopluslab can make a huge difference between investing in a legit project and a scam.

The only thing that has to be done is copying the token address to the website, selecting the right chain and everything else will be done by the website. Everything will be detailed for you in a simple way to understand.

These tools make investing in tokens a lot easier for everyone and are essential to prevent users to fall for a scam. You can check two of this tools here and here. If you don't want to click in any links that you don't trust, a quick search on google for the name of these tools will easily retrieve the respective websites.