The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

Crypto Scams: Five Ways to Identify Legit Crypto Coins

4 min reading

Here are points which can help you from getting crypto scammed.

cryptocurrency https://www.freepikcompany.com/legal

The cryptocurrency market is full of new coins that enter the market almost every month. December saw around 8,711 cryptocurrencies worth $2.61 trillion in the cryptocurrency market. But the euphoria also makes it harder to trace the authenticity of crypto tokens, and investors are often duped. The Squid Game Token is one such example. Coin, released after the huge popularity of the Netflix show of the same name, turned out to be a scam. The Squid Game Token is simultaneously rising and falling within days of launch as developers hide with tokens worth millions.

The fear of leakage (FOMO) factor in the crypto market is a trap for gullible investors who invest in this speculative currency without fundamental data and without much research. You have useless coins and no legal protection. However, there are always red flags that could save investors from potential fraud. As with any investment, the most important thing is to do your research and only trust reliable sources of information.

Also read: Over the last week, Metaverse virtual land has dominated NFT sales

Here are some basic tests that investors can use to distinguish fake tokens from legal ones:

  • Look for project websites and white papers: This is the best way to make sure the cryptocurrency you are investing in is legit. Each token issues a white paper explaining all the fundamentals and underlying technologies involved in designing the blockchain that the token supports. It can be found on the official blockchain developer website. Token name, generator address, contract source code, etc. are some of the important details which are published by most of the real tokens for the sake of transparency. If they are missing then you have to be careful.


  • Track Creators: Knowing as much as you can about creators is important. There should be enough information about them on social platforms. This is worrying when the author is anonymous.

 

  • Beware of Scammers: Investors are also known to trust the opinions of celebrities. Scammers often create fake videos with these celebrities and mislead investors with false information. In such cases, deepening often helps. Investors must follow the information back to its source to verify its authenticity.

 

  • Be careful with promises of high short-term returns: Every investor should remember that every investment takes time to increase in value. In addition, there are volatile cryptocurrencies that exhibit extreme price fluctuations. Fraudsters use the property to their advantage and promise real returns in no time. Phishing emails and social media handles are often used by scammers to catch gullible novice investors.


  • Follow URL: Most scams involve unsafe websites. If you don't see a "lock icon" in the address bar next to a website, then it's not safe to visit this website. Also make sure that the URL uses "https" instead of "http" as the latter is not secure. For example, URLs of illegal sites may use the letter "O" and the number "0" interchangeably because the differences are difficult to distinguish. Vigilance is the key to avoiding scams.

 

Currency Exchange rate Buy cryptocurrency

Buy crypto now
with Swapcoin.today

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the tokeneo.com/news/pl website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.