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How to Use Token Sniffer to Identify a DeFi Scam Tokens?

How to Use Token Sniffer to Identify a DeFi Scam Tokens?

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The DeFi (Decentralized Finance) platform is the place where you can trade various crypto tokens without the need to deal with any middleman, such as banking or financial institutions. With the DeFi platform, you can trade various crypto tokens and create various contracts for token trading.

However, one disadvantage of a DeFi platform is that since there is no financial institution to manage it, it is prone to scams and hacks, which is something you often find in this platform.

As a token crypto trader, you need to be very cautious when trading tokens via the DeFi platform, as there might be scams lurking around. You might find some good deals on the crypto tokens on the DeFi platform such as Binance Smart Chain or Ethereum, but don’t trade for them just yet.

How to Use Token Sniffer to Identify a DeFi Scam Tokens

You just need to find out if these deals are legit and not just a scam artist’s doing.

Token Sniffer – A Good Way to Identify Scam Tokens

Token Sniffer is a site that allows you to find information about various scam tokens you can find on the DeFi platform, such as Ethereum and Binance Smart Chain. With this website, you can identify if the tokens available on the DeFi platform are worth trading.

Before trading any token in Ethereum or Binance Smart Chain, it’s good for you to use Token Sniffer to check the validity of the token. You can access the Token Sniffer official website https://tokensniffer.com/.

Here are some features of Token Sniffer:

  • You can find the result for the small test or automatic audit for each token you can find on the DeFi platform.
  • The small audit gives you information such as the token risk, swap analysis, contract analysis, token summary, holder analysis, and liquidity analysis.
  • It supports various DeFi platforms, such as Binance Smart Chain, Ethereum, Fantom, Polygon, and more.
  • You can see the list of trending tokens, the newest tokens, and also the latest scams and hacks.
  • You can search any token using the search feature on the official site.

Also Read: How Can I Profit 1% Daily from Bitcoin and Crypto Trading?

Using Token Sniffer to Identify a DeFi Scam Tokens

You can use Token Sniffer to identify a scam token on the supported DeFi platforms. To use Token Sniffer is easy.

Here are the steps you need to follow:

  • First, you need to go to Token Sniffer’s official website at https://tokensniffer.com/
  • Then, check the token on the DeFi platform you are using and copy the token address.
  • Once copied, you need to paste the token address on the search bar you can find on the Token Sniffer official website.
  • You’ll see the analysis about the token, such as the risk factor, summary, swap analysis, and so on.
  • You just need to check the risk factor as assessed by Token Sniffer’s automatic audit system.
  • HIGH-RISK assessment means the token is a potential scam token, and you should not trade on this token as of now.
  • LOW-RISK assessment means that the token is not a potential scam token, and you can trade on this token while staying cautious about the transaction.
  • Congratulations. Now, you have identified a scam token on the DeFi platform with Token Sniffer.

Also check out bitcoin code bot for automating your trading experience!

Conclusion

Token Sniffer provides an easy way to identify scam tokens on the supported DeFi platform, and it’s easy for you to use this tool. You can avoid various scam tokens just by going to the Token Sniffer’s official website and search the token address you want to identify there. Good luck!

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