The fast-growing cryptocurrency market continues to be of great interest to traders, new investors, and crypto enthusiasts worldwide. The growth can be so promising that new tokens and projects appear almost every month. There are currently over 15,000 cryptocurrencies being traded, which was unbelievable a couple of years ago. However, such a rapid expansion of the entire crypto market is worrying. Many coins are launched to ride the existing trend, as well as deceive investors and get their money. So how to distinguish legitimate tokens from illegitimate ones? How to invest in a potentially promising project and not in a scam one? Let’s find out and stay safe with PointPay!
PointPay experts: identifying crypto scams
Examining any asset before investing is definitely the right practice all traders and crypto investors should follow. So let’s learn how to identify a poor project and a cryptocurrency scam with PointPay experts.
A poorly designed website can become a death sentence for a crypto project as it usually proves its inconsistency. Many strong and legitimate projects on the crypto market have professionally-looking websites. Pay attention if a website is not mobile-friendly, has no whitespace and no clear user journey, a poor ranking for organic keywords, and slow site speed.
Partnerships that don’t exist
Sometimes, a project website, blog, or social media accounts may rely on fake partnerships with influencers in the crypto space to reinforce the sense of the importance of the project. Building such a network takes a lot of time and effort. However, considering how many thousands and even millions of dollars a cryptocurrency can bring, many scammers believe it is worth it. The partnership certainly makes the project look more important, so be sure to do your own research to verify all the facts.
Crypto scammers and developers of scam projects often release fake statements about how their projects are expanding and how the progress is. You can find different false statements on the website, Medium blog, interviews, and published YouTube videos. Fraudsters can even pay various media resources and post incorrect information — they are ready to do everything to make the project look real and not like a cryptocurrency scam. That’s why it is essential to do your own research before choosing a project to invest in.
No white paper
PointPay experts believe that the white paper is one of the most important documents in a new project. It is a persuasive, in-depth report issued by a company to promote or highlight the features of a product and used to educate users and persuade them to learn more about its methodology. However, reading and understanding a white paper might be challenging for users who are not tech-savvy. The crypto industry is complex; it involves many disciplines, including coding, economics, analysis, etc. That’s why taking a look at the white paper might easily clear every doubt. If you think you won’t understand anything — talk to those who might help. And if the project doesn’t have a white paper at all, simply give it a miss.
Check what other traders, investors, and crypto exchange users say about a project. Are there any negative reviews, and, if so, what do they say? The good thing is that the crypto community is usually pretty quick to spread the word about crypto scams. Simple Google searches like ‘X token is a cryptocurrency scam’ can lead to articles, reviews on forums, Twitter comments, and examinations already undertaken by others. Moreover, such research won’t take much of your time, so don’t miss an opportunity to find out the truth and not invest in a poor project.
Don’t fall victim to crypto investment scams. More tips from PointPay
- Search online and add such words as ‘scam,’ ‘review,’ and ‘complaint’ to your Google search.
- Never provide bank account information, wallet addresses, logins and passwords, and other sensitive data.
- Be wary of cryptocurrency investment pitches and don’t trust offers on investment tips that sound too good to be true.
- Be cautious when you see a media personality endorsement.
- Don’t trust only analysts and those who say they know a better way to make profits with crypto.
Cryptocurrencies can definitely be legitimate investments that bring lots of profits. So many investors and traders make money by buying and then selling cryptocurrency for more than they paid. However, PointPay experts want to remind you that, as with any investment, there are absolutely no guarantees the value will go up. Crypto investments might carry some sort of risk, so the best thing you can do before investing is to do your research, not make rash decisions, and follow PointPay, a trustworthy trading platform, on social media and Medium blog.
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