Each day there’s a new cryptocurrency, ICO, or blockchain service introduced to the world.
It can be overwhelming.
There are scams out there, and it’s essential to know how to spot them before you lose your hard-earned money.
Are you ready to learn how to spot scams?
What is a scam cryptocurrency?
A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. We’re all here because we see the value to society over fiat currency.
However, a scam cryptocurrency is created to mislead investors, usually with high rewards and low risks. For new folks just dipping their toes into the crypto waters, it’s worth noting how many sharks there are just beneath the surface.
When investing in cryptocurrencies, it’s valuable to do your research on the project you’re interested in.
-What is the team’s background?
-What does the whitepaper include?
-What are the project’s financial goals and objectives?
-Does the project have a roadmap?
-Is there any social media presence such as YouTube videos or Facebook updates?
If you can answer these questions confidently, you can feel more confident in your investment.
However, if you cannot answer them quickly, this may signify that the company is a scam.
Scanning for red flags when analyzing projects will help. For example, if they are promising unrealistic returns for their token or are selling you an ICO without any product to back it up, this could be a scam.
Signs of a scam
A scam cryptocurrency is not going to be transparent with its company information.
The thieves will often use fake people on their team to hide their identity, so you might want to search with Google Images. Does the photo look like it’s from a Royalty-Free Stock site?
They are also likely to have a lot of spelling mistakes and broken English.
Is the company name a red flag?
If the website domain has strange letters or symbols or the company name doesn’t make sense, you’ve probably just taken a trip into Scamville, population, undoxxed. Where everyone who visits leaves broke and angry.
There are many other ways you can spot a scam cryptocurrency too!
How to spot a scam
-Exaggerated claims of growth, success, and popularity
-No contact information or a website that doesn’t contain any information on the company
-No history or background on the company or team members
-Claims to be backed by a major brand or government with no proof
-Bounty programs with little to no reward
How to buy cryptocurrencies safely
Online scams are rampant, so it’s vital always to stay aware.
One way to spot trouble is by looking for low, unrealistic returns and high investment risks.
If a company guarantees a high return on its investment but has not yet released its product or service, this should be a red flag.
If there’s no information about the company you’re investing in, and they try and sell you a “get-rich-quick” scheme, this is probably not legit.
It’s important to research the legitimacy of anything you invest in before throwing money down the drain.
Cryptocurrency scams that are out there now
There are many scam cryptocurrencies out there. Some of these include OneCoin, Bitcoin Hunting Club, and BitPetite.
Please keep in mind that when it comes to cryptocurrency investing, there are plenty of risks that you need to know about. These risks include ransomware, hacking, and malware.
But it doesn’t stop there.
There are also dangers related to the market’s volatility, scams, and scammers. Understanding these risks and how to avoid them will help you make smarter investment decisions.
And you’ll never need to set foot in Scamville.