2 weeks ago
22
Thousands of people lose their investments to crypto scams yearly. When I speak to many people trying to invest in the crypto market, I realize only a few people know how to do proper research. So, today, I’ll show you some things you may not find on many or any blogs that can help you determine clearly if a crypto project is a scam or poorly planned and doomed to fail.
Let’s get right into it! Here are five (5) detailed tips.
1. Don’t Invest Too Early: Articles On Reputable Blogs Is Not An Endorsement
“Position early” is a common saying in the crypto world. However, you can lose it all while trying to position yourself early to make high gains. When you spot a project, don’t invest immediately. Reading about a new crypto project on reputable blogs is not endorsement or proof of authenticity. These blogs cannot spot every crypto scam or poorly planned type headed for disaster. Moreover, there is always a disclaimer attached to these articles telling you, the readers, that the information or content of the article isn’t the blog’s opinion — it is a paid advertisement!
So, don’t rush to invest the next time you read a compelling article about a new crypto project on a reputable blog.
Additional information for geniuses
I know some of you are very smart, and you may think; it’s very expensive to post on these blogs, and some of these crypto projects have hundreds of articles across many blogs. Good thinking!
Well, how much planning and calculations some projects do to mimic standard types will surprise you. They also invest some amount to look legit and grab investors’ attention. Besides, they don’t post hundreds of articles at once. It is done gradually, giving them time to milk buyers and keep marketing to get more unsuspecting targets. Some poorly planned projects can get funding at the start, which often gives them enough capital to play with.
2. Read Whitepapers, Follow Social Media Channels, And Join All Community Channels
The Whitepaper of a crypto project is important, so take your time to read it. When you read, analyze the feasibility of what the team is set to achieve. If the technical language is difficult to comprehend, you can use another method. Try to look for the roadmap and take note of certain developments or milestones and when they are to be achieved. If the team keeps missing the timeline for the development, that might be a red flag.
Social media channels and community channels are places you want to join or follow. These are places where you get to interact with the team’s representatives and get access to many announcements. More importantly, you’ll be in the same community as experienced crypto investors who will ask some important questions or leave remarks that will help you deduce the reliability of the project.
For example, if you join a Telegram channel, scroll up or wait a few days to check for possible complaints. Were the complaints resolved? Are many people facing similar issues? The comment sections of social media channels are also where community members air their grievances. You may want to check multiple posts to gather enough information to make investment decisions.
3. Read About Them On Forums Like Reddit
Reddit forums or subreddits for crypto projects are common. If you still have doubts about a project after taking the steps above, search for crypto subreddits or use the project name itself in the search box. You may be able to find threads of discussion about the project. From there, you can analyze what people say about it based on their experience with the project.
4. Be Wary Of Mysterious Team
A mysterious team that fails to identify its members can be a red flag. Projects with real value are not hesitant to showcase their team members. Some reputable projects may ask that you follow them on social media or more formal platforms like LinkedIn. If a project fails to identify its team members, be careful.
It’s common to see some projects claiming that their team has been KYC verified by some bodies or agencies. Don’t fall for this. It’s not a guarantee of any sort.
5. Don’t Fall For Listing Promises Or Partnership Claims
Some projects may make claims like “ we are set to list on XY exchange, or we will launch or AB exchange.” Most times, this is a trick to grab readers’ attention and get them to invest. Do not fall for this, especially if the exchange mentioned has not acknowledged their claim.
Even when an exchange mentioned verifies a listing claim, you still need to be careful.
In the image above, Hyperliquid issued a disclaimer that you must always remember. Just because a project is confirmed to list on a reputable platform doesn’t automatically mean it is endorsed or in partnership with the platform/exchange.
The urge to invest early can be strong, but properly researching a new project can help you avoid falling into a scam/rug pull or losing your funds to a poorly planned project. Use these effective tips to protect yourself and “do your own research.”
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