Honestly, I recently faced a question from a friend — how not to make a mistake when choosing a token for trading. And I realized that many people really don’t know what to pay attention to. So I’ll share what I’ve learned from my mistakes.

Tickers are those letter codes like BTC, ETH, BNB that you see everywhere. But here’s the catch: in crypto, projects with the same or similar tickers are often encountered. Sometimes it’s a coincidence, but sometimes it’s outright scam. Therefore, before buying or transferring cryptocurrency, you need to be more careful.

The most important thing is to always do your own research. Don’t be lazy to check the token contract address and all information about the project. It won’t take much time, but it will save you from losing money.

The first thing to do is find the contract address. This is a unique identifier that shows exactly where the token’s smart contract is located on the blockchain. For example, if you deposit a token via the Ethereum network, the address will look like a long string of characters. You can find this information in the deposit section on the exchange or in blockchain explorers.

Be careful with native tokens — those that are built directly into the blockchain. Take BNB on BNB Chain: here, there will be no contract address because everything is already programmed into the network itself. But if you deposit BNB via Ethereum, then you will need the token’s contract address.

Next — check the project itself. Visit its website, read the technical document, look at the team. Red flags: most tokens are in a few wallets, unclear or strange whitepaper, anonymous team without experience, bad reputation on social media, hidden source code.

Before depositing or withdrawing money, always send a test transaction — a small amount that you won’t mind losing. This will confirm that the address is correct.

Also, verify that the token contract address matches the one supported by your exchange. On Gate.io, for example, this can be easily found in the deposit information.

A very important point — one token can exist on different blockchains simultaneously. For example, USDT exists on Ethereum, Tron, and other networks. But these are different objects! If you send a token to the wrong network, it might not be credited. Check whether the recipient platform supports the network you are sending from.

If you’re using a Token Bridge, keep in mind that not all exchanges support it. Before sending, make sure the target platform accepts bridge tokens. It’s better to first transfer them to your personal wallet, then send a regular transaction.

According to statistics, there are tens of thousands of cryptocurrencies, and new ones appear every week. Among them are both real projects and outright scams. When in doubt, use blockchain explorers. Look at the number of holders, trading volume, market capitalization. If the figures look strange or don’t add up, it’s a reason to be cautious.

For example, a fake USDT might look similar, but if you check the explorer, there will be funny numbers: 20 billion in supply, only 2000 holders, zero market cap. The real USDT has millions of holders, hundreds of billions in circulation, clear market information.

One tip: if you’re using decentralized exchanges based on open networks, remember that there is no moderation like on centralized platforms. Anyone can list a token — legitimate or fake. First, learn to understand crypto, then dive into DeFi.

In general, the main thing — don’t rush. Check the token contract address, project information, supported network. Send a test transaction. It takes a little time, but it will protect you from silly mistakes. I now always do this, and I sleep better.