Inflation is rising; you may be looking for ways to pay rent and other bills. You should be careful if you think that cryptocurrency can help you save more money. Since the beginning of 2021, more than 46,000 people have told the Federal Trade Commission that cryptocurrency scams cost more than $1 billion. Reports say that the average amount of money people lose is $2,600. Bitcodes – the best trading bot used by millions of investors.
Since there is no central authority responsible for cryptocurrency, investors are not safe with traditional bank accounts. Knowing how to spot a crypto scam is important because a lot of money is at stake.
An unrealistic claim
People often say untrue things in crypto scams. If a website that sells cryptocurrency makes promises that seem impossible to keep, you should think that the promise is fake. Beware of agreements that promise too much but don’t have enough money to deliver.
So it is difficult to find it on the most popular trading platforms
If you want to invest in cryptocurrencies, you should know that you can buy and sell them on large exchanges like Coinbase or Gemini. If not, you might want to think twice before putting your money down.
Most cryptocurrencies that are not traded on significant exchanges may not be genuine. Most scammers do not want to complete all the necessary documents to join the exchange.
The white paper for the ICO does not have enough information
If the white paper for the initial coin offering (ICO) does not provide enough information, you probably should not invest in it. A well-written whitepaper should explain the project, team, and cryptocurrency clearly and concisely. If important details are missing, an initial coin offering (ICO) is probably not a good place to put your money.
The fact that there is no white paper for ICOs
If an initial coin offering (ICO) doesn’t have a whitepaper, it’s usually a sign that the project isn’t well thought out, the team is inexperienced, or it’s a scam. If you want to invest in an ICO, you should get the white paper and read it first. You should leave the group if they can’t give you an excuse.
Pumping and dumping is the way to go
If an initial coin offering (ICO) looks like a pump-and-dump trade, you probably shouldn’t put any money in it. The pump-and-dump strategy tries to make cryptocurrency more valuable by increasing the price for no reason. This is because the original owner sold out when the price went up, which brought in new investors.
Famous people have given vague advice
What famous people say can sometimes lead people in the wrong direction. In 2017, Floyd Mayweather and DJ Khaled were paid to promote a fake cryptocurrency company called Centra Tech. But neither Floyd Mayweather nor DJ Khaled told their fans on social media that they were paid to promote Centra Tech.
People don’t really care about the town because it is small
If you want to invest in a cryptocurrency project, you should look at how big, and active the community that supports the project is. If the community does not care or believe in the project, it may not work. This is especially true if the city is small and not crowded.
We don’t know much or anything about the founders of the company or the company itself
The project website should be informed about the people working on it. It may not be good if there is not much information about the project. If a group doesn’t want to talk about themselves, they might hide it from the public. Because of this, you shouldn’t invest in a business whose founders don’t tell you much about themselves.
People in the team who are not organized or do not know enough
If the team is not well organized or has never done this before, they may not know what they are doing. You will want to make sure that the people running the business are good at what they do and have a history of success.
If you are aware of some of these warning signs, cryptocurrency scams may not work for you. Before putting money into something, you should always do your research and don’t risk more than you can afford to lose.