How can investors identify fake cryptos?

The crypto market is growing, so are the numbers of fake cryptocurrencies and scams.

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Thoroughly researching on the creators

One of the best methods to understand the fraudulent tactics is to thoroughly research on the individual creators of a project before investing.

The investors have to understand that if the team is legit, they will have information about themselves on the social media outlets, it is a bad sign if they do not find any information.

Avoiding companies that do not provide a whitepaper of the project concept

The ICO whitepaper is the foundational document for the project, which should contain the goals, strategies, background, concerns, and timeline for the implementation of the project.

Staying away from bad tweets and social media updates

Malicious impersonating bots are quite rampant on social media when it comes to cryptocurrencies.

Investors should never trust random influencers from Twitter or Facebook promoting any new crypto scheme.

Look for the token sale figures

Legitimate companies and endavours allow the investors to view the system and the progress of the token sale.

If the company makes it difficult for anyone to chart the progress of its ICO, then it is a huge red flag.

Analyse the authenticity of the company websites

There is a surprising number of websites that have been set up to resemble authentic websites, especially when it comes to digital currencies.

It is very important for investors to steer clear of these websites. They can research more on such websites and understand the difference between a real and fake website.

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