How to Check a Crypto Token Before You Buy: A 7-Step Checklist
A practical checklist for checking a new token: authorities, liquidity, holder spread, honeypot test, trading history, socials and a small test trade.
By Mentat Booster Team · · Updated · 2 min read
In this article
New tokens appear all day, and some of them are built to take your money. A short, repeatable check removes most of the risk. Here is a seven-step checklist you can run in a few minutes. It works on Solana, BNB Chain and other EVM chains, with the differences noted.
1. Confirm you can sell
Before anything else, make sure a sale would work. A token you cannot sell is worthless. Use a tool that simulates a buy and a sell. See what a honeypot token is for how these scams work.
2. Check the permissions
- Solana: are the mint authority and freeze authority revoked? If not, the creator can print more tokens or freeze yours.
- EVM chains: is the contract verified on the block explorer, and can the owner change taxes or blacklist wallets? Renounced ownership is a good sign, though not a guarantee.
3. Look at liquidity
Liquidity is the money sitting in the trading pool.
- Is it deep enough that your trade will not move the price a lot?
- Is it locked or burned? If the creator can pull it out, the token can become worthless instantly (a "rug pull").
- On a launchpad curve, check how far along the curve is.
4. Look at who holds the supply
Open the holders list.
- If the top few wallets hold a large share, they can crash the price whenever they like.
- Exclude the liquidity pool and known exchange or burn addresses when you read it.
- Look for many wallets created at the same time holding similar amounts. That can be one person splitting their holdings.
5. Read the trading history
- Are there real sells as well as buys?
- Is activity steady, or one big spike?
- Do the trades look like many different people, or the same few wallets repeating?
6. Check the project's presence
A website, a real X account and some history are not proof, but a token with none of them is a bigger gamble. Be careful with copy-pasted text and fake follower counts.
7. Do a small test trade
If everything looks fine and you still want in, buy a tiny amount and sell part of it. Only then size up.
Quick reference
| Check | Red flag |
|---|---|
| Sell test | Sale fails or tax is very high |
| Authorities | Mint or freeze still active (Solana), unverified contract (EVM) |
| Liquidity | Tiny or removable |
| Holders | A few wallets own most of it |
| History | Only buys, or repeating wallets |
Let a tool do the first pass
The Token Analyzer in Mentat Booster covers liquidity, holders and the honeypot test in one tap, on Solana, BNB Chain and Robinhood Chain. It will not tell you a token is a good investment, and nothing can. It saves you the first ten minutes and flags the obvious traps. Read more about Telegram bot safety too.
Frequently asked questions
How long should a token check take?
A basic check takes a few minutes. The honeypot test and the holder and liquidity review catch most of the obvious traps.
Is a token that passes every check safe?
No. Checks remove known traps, but they cannot tell you whether the project will succeed. Only risk money you can afford to lose.
What is the most important check?
Confirming you can sell. If a token fails the sell test, nothing else matters.
This article is for information only and is not financial advice. Crypto trading carries a high risk of loss, and no tool can guarantee price movement or profit.