Due Diligence Before Investing In a New Crypto Project.

I have made the most of my crypto gains by adhering to a First In, First Out approach. Unfortunately, by being one of the first investors (i.e. <100k) the likelihood of encountering a rug or honeypot increases significantly.

One might consider this gambling and not investing, but by conducting due diligence and removing emotion, I have developed a strategy to mitigate risks. Below are the questions I ask before investing in ANY project:

1. Check the blockchain explorer (i.e. Etherscan), review holder information and contract.
2. Is the contract renounced? Owner 0x0000000000000000000000000000000000000000 address
3. Was the project fair launched?
4. Is the liquidity locked and for how long? (i.e. UniCrypt or Team Lock)
5. Is the contract audited? (i.e. Certik, OpenZepplin)
6. What is the Token Sniffer score?
7. What is the Dextools Score?
8. Does the website have professional UI/UX?
10. Is a whitepaper available, and does it make sense?
11. Is there a telegram, twitter, and/or discord with a responsive dev team?
12. Is the dev team doxed?
13. Does the project offer new utility or innovation?
14. Does the project make wild promises that are too good to be true?

Personal Rule: Wait at least 3 days before investing

This strategy can be applied to most blockchains and projects, and hopefully it will be of benefit to some of you.

If there is something I missed, feel free to share!