Buying Tokens on SquidShot

Participating in Presales

This guide explains how to participate in token presales on SquidSwap, including the bonding curve mechanism and important considerations for investors.

Understanding the Bonding Curve

SquidSwap uses a bonding curve mechanism for fair token distribution:

  • Price increases with each purchase

  • Early participants get better prices

  • Transparent and predictable price discovery

  • Automatic liquidity creation at 1 ETH

  • Unsold tokens are burned

How to Participate

1. Finding Active Presales

  1. Visit the SquidSwap Launchpad

  2. Browse available presales

  3. Review project details:

    • Token information

    • Social links

    • Development team

    • Project description

2. Buying Tokens

  1. Connect your wallet

  2. Select desired contribution amount:

    • Minimum: 0.005 ETH

    • Maximum: 0.1 ETH per transaction

  3. Approve the transaction

  4. Wait for confirmation

3. Post-Purchase

  • 10-minute cooldown to sell tokens for stability

  • Monitor your token balance

  • Track project progress

  • Watch for launch finalization

Important Considerations

1. Trading Restrictions

  • 10-minute cooldown between buys/sells

  • Transaction size limits

  • Anti-bot protections active

  • Initial 4-hour tax period after launch

2. Fees and Taxes

  • 1% platform fee on all transactions

  • Referral rewards available

  • Post-launch anti-dump tax structure:

    • 20% → 2% over 4 hours

    • Helps prevent price manipulation

3. Launch Process

When 2 ETH is reached:

  1. Trading on bonding curve ends

  2. Liquidity pool is created with a 2% price premium to presale buyers

  3. Unsold tokens are burned

  4. Normal trading begins with protections

Risk Management

1. Due Diligence

  • Research the project thoroughly

  • Verify social media presence

  • Check developer history

  • Review token economics

2. Investment Strategy

  • Don't invest more than you can afford

  • Consider DCA (Dollar Cost Averaging)

  • Watch trading patterns

  • Monitor community engagement

3. Post-Launch Period

  • Be aware of the anti-dump tax

  • Monitor price action

  • Follow project updates

  • Engage with the community

Tips for Success

  1. Timing

    • Monitor new launches

    • Be early but not rushed

    • Watch market conditions

  2. Portfolio Management

    • Diversify investments

    • Set clear exit strategies

    • Keep records of trades

  3. Community Engagement

    • Join project communities

    • Stay informed

    • Share feedback

    • Report issues

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