Buying a new token on PancakeSwap can be exciting, but it’s also risky—especially with lesser-known or newly launched tokens. Here’s a comprehensive checklist of what to do before buying a new token on PancakeSwap:
✅ 1. Do Basic Research (DYOR)
🔍 Check the Project:
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Website: Does it look professional? Are team members listed?
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Whitepaper: Is there a clear use case or roadmap?
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Social Media: Is the community active on platforms like Twitter, Telegram, Discord?
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GitHub: If it’s a real project, there should be ongoing development
⚠️ Red Flags:
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Vague or unrealistic promises
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Anonymous team with no background
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No clear product or roadmap
✅ 2. Verify the Token Contract
🔗 Always copy the correct token contract address:
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Get it from official sources like:
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CoinGecko / CoinMarketCap (if listed)
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Official project website
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Official Twitter / Telegram
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🔐 Avoid Fake Tokens:
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Scammers create copycat tokens with similar names or tickers.
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Cross-check the contract address before buying.
✅ 3. Check Tokenomics
🔎 Look for:
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Total Supply & Circulating Supply
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Tax on transactions (some tokens have buy/sell taxes)
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Liquidity lock duration (rug pulls often occur when liquidity isn’t locked)
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Developer wallet size – Is it too large? Could they dump?
✅ 4. Check Liquidity Pool Health
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How much liquidity is available on PancakeSwap?
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Is the liquidity locked?
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Who provided the liquidity? Devs or community?
⚠️ Risk:
If liquidity isn’t locked or is owned by one wallet, there’s a high rug pull risk.
✅ 5. Scan the Smart Contract
Use tools like:
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Token Sniffer
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BSCheck
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Honeypot.is – Check if the token is a honeypot (i.e., you can buy but not sell)
Red Flags:
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High tax (>10%)
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Minting function (devs can create unlimited tokens)
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No sell function / sell limit
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Suspicious or hidden owner functions
✅ 6. Start Small and Test Sell
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Make a small purchase
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Immediately try selling a small portion
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This tests whether the token is not a honeypot and if your wallet can interact with it properly
✅ 7. Use a Fresh or Burner Wallet (Optional but Safer)
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Especially for new or unverified tokens
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Helps protect your main wallet from malicious contracts or approvals
✅ 8. Understand Slippage and Fees
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Some tokens require high slippage (due to tax) – be careful
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Adjust slippage in PancakeSwap settings (gear icon)
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Monitor gas fees and potential transaction failures
✅ 9. Avoid Hype-Only Tokens
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Hype drives pump and dump behavior
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Influencer shills are often paid promotions
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Ask yourself: Would I invest in this if I saw no hype?
✅ 10. Be Ready to Lose Everything
New tokens on PancakeSwap are extremely high-risk. Even with research:
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Devs can rug pull
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Market can dump quickly
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Token may be untradeable
Only invest what you can afford to lose.
