Dear reader, I hit rock bottom. Not because I’m careless or anything, but because too many things have happened within a short period, and it weighed on me.
But I picked myself up and continued my journey. You can check my last degen entry.
I searched and I searched and I searched for good tips on how to find gems on Dexscreener but I found the same generic tips:
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Open Dexscreener
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Use filters
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Choose your preferred chain
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Set FDV at $100,000 min
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Set liquidity to $10,000 min
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Set 1hr txns to 50 min
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Set MC to $100,000 min
They also provided other variations for low-cap, mid-cap, etc.
But I did all of that, and still hit a wall. So here’s my advice…
Step-by-Step Approach to Find Gems on DexScreener
- Understand the trend
You are more likely to be successful when you identify the trends that are moving the market. For example, we’ve had a meme supercycle where memes with a cultlike narrative were moving the needle (Retardio, Lockin, Sigma, etc).
For early December, seasonal memes were the rage (Rizzmaz, Santa, Elves, etc). And with the way the market is going, following the news of Trump proposing crypto tax cuts i.e. considering elimination of capital gains taxes on U.S.-issued cryptocurrencies like Cardano (ADA), Algorand (ALGO), Ripple (XRP), and Hedera (HBAR), the trend might shift to these chains.
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- Go where the trend goes
Being Degen means fast, scalping trades that can make you profits. If the meta isn’t in, go elsewhere.
Choose the chain with your preferred narrative. Review the gainers and losers just to get a sense of what is working. And flow with the trend(not against it).
If you buy the rumour, you can sell the news which is good for you and good for your portfolio.
- Use filters on DexScreener
Now you know the trend and the chain driving the narrative, use it to your advantage.
Open dexscreener and use filters (like the ones shared in the image above).
Personally, when I want a really fast trade, I look at assets launched between 0–10 hours, with MC between 100k to 300k, with up to 10,000 USD in liquidity and up to 50 transactions in one hour.
Then I review the options presented and go deeper.
- Fundamental Analysis (This is the Secret Sauce)
I know some people might not care for this but to maximize my win rate, I do a fundamental analysis. I can’t read charts to save my life right now, so I go to all the other things the charts don’t cover e.g.:
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Does the project have an active X account?
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How many chads are tweeting about the token and narrative?
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Do they exist on Telegram?
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Is liquidity locked?
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What’s the buy and sell ratio like?
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Is the contract audited? Etc
Team information is rarely disclosed for memes or degen alts, so forget about that. Focus on what the community is saying.
If no one is saying anything, that’s a red flag.
As an added measure, use Dextools to track whale inflows and outflows. You can do this by looking at the tier category on the Dextools order book for your preferred token.
Dextools order book
The more whales and dolphins are buying in, the better.
- Monitor your trades.
Degen moves fast. Bots exist to help you get in and out of trades fast, but sometimes they can malfunction. And if you’re executing trades manually, you need to stay alert so you’re not the exit liquidity.
I had a 30x on a trade that I entered a few weeks ago. Went to do something for 20 mins and came back to a rug.
That’s degen for you. Your goal is to get in and get out — FAST!
Finally
This is my personal opinion/what has worked for me so far. In this case, I haven’t considered anything else like FDV, alpha callers, influencers, etc. Just the project’s performance, the community and order analysis.
If you enjoyed this, check out entry 8.
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