How to Avoid a Cryptocurrency Investment Scam?
There are many scam crypto investments outside
Many people are interested in blockchain because of the success of cryptocurrency. However, it also opens up the opportunity for fraudulent schemes.
There are lots of fake projects in the blockchain industry. One of blockchain’s well-known natures is decentralized. Everything has two sides. Because it is decentralized, users cannot even find the company or team of a scam project to report and get their money back.
By promising an extremely high return, these scams can “catch” many new users. They pretend themselves convincing projects: prepare an “official website”, a full set of social media channels, a telegram group, etc. You might like the idea of getting a lot of money back and think about putting your money into something.
But wait! Take a few more actions to make it less dangerous. We can’t completely get rid of scams, but we can do more to keep ourselves safe.
How can you tell if a project is trustworthy and avoid getting scammed?
Knowing the type of project is very important.
Before you put your money into a project, make sure to look at what type of project.
Specifically set a category called “High-risk” to remind our users of a widely acknowledged yet always forgotten lesson: High return comes with high risk.
Track a project’s on-chain data.
Users, transactions, and volume experience a sudden drop sharply, you can regard the drop as an alert: It might be a scam!
Ask the community for help
What others have experienced will remind you of the potential risks.
Still not sure if this project is trustworthy? Most communities are helpful and warm-hearted. Many of our users have left comments to share good user experiences or warn other users of the risk at their community forum.
So remember to read reviews carefully. If you notice something that doesn’t seem right about a project or if you’re deceived by a fake offer, please write a review to warn others. Your words can help many people avoid dangerous situations.
