How do you consider the safety factor/risk of your invested tokens?

[benny89]

Was wondering lately how you count and rank your token's security factor and risk before you invest in it?

Do you have a tool that you are using?

lats say that you are able and want o build such a tool how would you make it what you would add what you will remove?

I'm a student and doing a project for my study would like to hear your comments  

[jossiel]

Was wondering lately how you count and rank your token's security factor and risk before you invest in it?

Do you have a tool that you are using?

lats say that you are able and want o build such a tool how would you make it what you would add what you will remove?

I'm a student and doing a project for my study would like to hear your comments  

I don't use any tool.

It's just all about research and giving time for that research. There are a lot of information that you can find just sitting and looking for every information that you need as you look for that factor of security with the token you're about to invest.

As someone who's not good in technicals, there are people who are good in this field that are generous to share what they've found from the token that we're likely to research.

That's why DYOR is a very important piece of advise. Seems simple but it rules.

[timerland]

If there was a tool that gave you a definite answer, then you will essentially be able to make infinite profit. There is no perfect analysis for this.

But I think that the best indicator of how much risk you are taking on is a project's market cap.

Anything large cap you should expect to see significantly less fluctuations in its value compared to small cap coins that are just started up. Small caps also tend to underperform in bear markets as everyone is trying to scrape by with a skeleton portfolio, and the small caps are usually the first ones out as they become overvalued during the bull run.

[Yogee]

Are you asking about a bot that automatically rates all these projects based on parameters you set? I don't think such tool exist. Manually checking things is the best way for assessing risk for me so the tools are a simple spreadsheet and their documents.

[X-ray]

Was wondering lately how you count and rank your token's security factor and risk before you invest in it?

I don't count it and i personally try to make sure everything fine through use audit that already done by a company like certik or hacked to make sure if there will be no critical function being implemented.

Do you have a tool that you are using?

I don't have or even use any tool for this. I just try to trust the result from auditors.

lats say that you are able and want o build such a tool how would you make it what you would add what you will remove?

[/quote]The tool will never be perfect. Building the tool is also very complicated. Remember that if the risk factor of token can come from anywhere. Fully audit token didn't always mean the project was so good. Sometime it can also die due to the various reasons. it's not making you 100% free from the risk.

[coinsycrip09]

i don't think there is any tool that can quantify with certainty the security or risk of a token, if it exists then it will make everyone a huge profit and no one will lose any money.

i think, everyone is still using the manual method to check for themselves the risks involved in each token they will invest.

[Jackl87]

Was wondering lately how you count and rank your token's security factor and risk before you invest in it?

Do you have a tool that you are using?

lats say that you are able and want o build such a tool how would you make it what you would add what you will remove?

I'm a student and doing a project for my study would like to hear your comments  

I don't use such a tool and i also don't know of such a tool to be honest and in addition to that i don't even know how you would build such a tool because in the end you can only quantify the risk of losing your money when you invest into a project if you would really know everything about that project and that is hardly the case in the crypto space. You could only read the whitepaper and then take a look at the team and check their track record, then you take a look at the road map and other stuff like that.
Then you could do some sort of a weighted sum model, where you give each individual aspect a weight and a certain rating and then you could add it up to a overall ranking but of course those ranking would be subjective and not objective.

[takngantuk]

Was wondering lately how you count and rank your token's security factor and risk before you invest in it?

Do you have a tool that you are using?

lats say that you are able and want o build such a tool how would you make it what you would add what you will remove?

I'm a student and doing a project for my study would like to hear your comments  

there is no such tool. I only trust my intuition. maybe you can say hit and run, invest in IDOs and sell them the first time they are traded. so I don't care about the future of that project or any other technical issues. As long as it makes a profit, I'll buy it and sell it when the opportunity arises.

[crwth]

Maybe generate a list first on how you could determine a specific token/project and then start from there. Like what are the factors that you could add and determine if it's worth investing in or not. Probably something measurable and can be used as data for calculations whether it would be for time period, invested amount, etc.

There are some possible things that you could add to your variables. Maybe try to find tools to get them

• Number of people invested in the project/token
• How much people have invested in the project/token
• Security precautions of the project/token
• History of Breaches/exploits
• Distributed Tokens

Maybe you can start from this or something? After this can you share your project, OP?

[benny89]

Thank you for your answers!

I think maybe some of you didn't understand me quite well or I didn't explain everything as I should.

When I have talked about the risk I haven't talked about the risk to lose money from the investment, I was talking about the risk and security factor of the asset.

Let's say I am an investor and I want to invest in a new low cap coin I don't have time to read DYOR or anything else I want a simple ranking metric from 1-5 that will support my buying or selling decision in the monitoring phase.

Should I invest or not. Once again I am not talking about profits I mean scams rug pulls stolen crypto etc.

This could be API that you can call, the metric will be calculated by the amount of bots trading, etc...

Hope I have explained it better?

[bitkanu]

Most of the time it’s just full of analyzation in determining an investment that’s promising and prospective either for the long term and short term.
other than that, market capitalization rank is a pretty good sign for determining the risk carried by the investment, like if you are investing in a major altcoins you have significantly lesser risk of losing your investment value
I don’t think any tool that could helps you analyzing all these investment options accurately really exist, instead most of them are just following the books of investment and trading that could always results in mistake and isn’t 100% accurate.

[PrivacyG]

Hope I have explained it better?

You are asking if we have a tool that we use to consider or not investing in a particular Token?  I do not think there are such tools around.  There are some websites that do create security rankings for Cryptocurrencies and particularly Tokens, but I do not know how accurate they are.

To answer your main question.  I do not think there is any way to automatically verify how secure a Token is based on charts or market orders.  This is mainly Do Your Own Research and connecting the dots by yourself.  Does knowing how many bots are trading tell you whether the Token is a scam or not?  I do not think so.  Most Tokens, if not all, have at least a few bots playing the markets.

Most will probably say whether the team is doxxed is a good way to tell.  It is not, see OneCoin as an example.  She is 'doxxed' yet she created one of the largest scams ever.  On the opposite side, see Bitcoin.  It is not a scam and the 'team' has not been doxxed ever before.

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Regards,
PrivacyG

[benny89]

Actually, in Binance there are listed many different tokens that are not that secure at all maybe I'm not as experienced as you but I wouldn't call Binance a good (safe) trading platform.BTC

[tsaroz]

Was wondering lately how you count and rank your token's security factor and risk before you invest in it?

Do you have a tool that you are using?

lats say that you are able and want o build such a tool how would you make it what you would add what you will remove?

I'm a student and doing a project for my study would like to hear your comments  

For dapps and dex, I look for audit reports. For all of tokens, I also follow their social profile and chats to find how active and co-operative they are. How well their whitepaper are written and how sure they are about what they want to achieve. I also try to buy coins on their pre sale or public sell as much as possible and if I missed it, I wait for it to get listed on exchange and fall in price before buying to hold for long term.

[Bitstar_coin]

As a result of the growing rate of investors' concern about their investment, some projects have made it a priority to vet their smart contract with some of the blockchain security audit platforms like certik, as an investor, the much you can do is check the background of the team, ensure they are doxxed and other important information,
I don't know of any tool to verify the authenticity of a project other than doing your own personal digging,  if there were tools like that am sure people will be so eager to use it, it will save them the stress of getting this information manually.