How to Identify Cryptocurrency Scams

[Onuohakk]

If you apply some common sense, almost all scams can be detected easily, nothing is usually free. Yes I know giveaways exist out there but even those are not free, they usually require you to do some small task like retweeting something. Classic scams like: Hey I'll send you 1 BTC but you have to send me 0.01 BTC first, are clearly scams and if you fall for those, I don't know what to tell you.

ICO's on the other hand can be quite tricky. Obvious scammy ICO's exist and are easily detected but they are getting more and more sophisticated. It is really risky to invest in ICO's right now even if you do your research. Some ICO's have scammed in the past even though their team was real so that's not always an accurate way to determine whether the ICO is a scam or not.

Where you'll experience such ICO's scammed project is mostly in airdrops. They'll  advise everyone (thousands of users)  to send a particular amount of gas fee for them to send you their tokens or you've to have about 10 referrals before payment. By so doing many would like to invest and fall as a prey

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[boris2470]

Hey, this recently published article on how to avoid risky investments and spot frauds mentions our forum 

Link: https://medium.com/@Peter_UXer/how-to-identify-cryptocurrency-scams-813c32816ddf?source=friends_link&sk=da150ce8128c348da4b0dfdbf57e8e12

The most reliable way to get profit is trading. If you will be analyzing the market for its own you can get good income. If we are talking about investments, its really needed to avoid financial pyramids, but it’s better to pay attention to IPOs that are held on large exchanges, it has minimum risks

[shoreno]

If you apply some common sense, almost all scams can be detected easily, nothing is usually free. Yes I know giveaways exist out there but even those are ~ snip ~

Where you'll experience such ICO's scammed project is mostly in airdrops. They'll  advise everyone (thousands of users)  to send a particular amount of gas fee for them to send you their tokens or you've to have about 10 referrals before payment. By so doing many would like to invest and fall as a prey

airdrops are mainly free , they dont ask for a certain fee therfor you cant reall call it a scam . i also heard a kind of airdrop that ask to send 0 eth transaction but this arent also a scam because like i said earlier , you will only be sending 0 value transaction  . its only for activation purposes i think  . lastly , i also came across to an airdrop that requires invites and referall but they are also verified and not scam   . scams oftenly occur on investing schemes and its hard to catch them so we must be aware and take time to ask for others suggestion before entering it yourself

[Mulann2]

There are certain unique traits of a cryptocurrency that includes decentralization, full transparency through a public ledger, and an open source code that anyone can see. Scams and Ponzi schemes do not possess these common characteristics and are usually centralized and opaque.

The best way to avoid falling into this various scams and shady schemes is to identify common characteristics as listed above. More importantly, Arming yourself with the right knowledge would safeguard you against these Scams.

Yeah unfortunately scammy project have mostly multiple faces, it is very hard to tell if they are genuine or fake, except one really dig deep to find out in details about that project,  sometimes you come across project with full transparency and decentralized yet still end up a scam, you never know with scam project, they device new means of catching their prey.

[Naughty Princess]

This article is a must-have for every crypto or non-crypto newbie.

Agreed. But actually all these things are so simple that even a child can guess them before investing.

And because its so simple to understand wether its scam or not, so more people proceed even they know that it is scam, since they knew already how it works and how they can profit especially in ponzis.

Simple but there is something that make people blind and proceed to invest though doubted that the site is scam because of good offers. Still simple reminder can help to be more cautious on every action when investing and be alert on choosing the sites where you enter. Scam is everywhere, do not be careless on every click you do.

[Zionatin]

If you apply some common sense, almost all scams can be detected easily, nothing is usually free. Yes I know giveaways exist out there but even those are ~ snip ~

Where you'll experience such ICO's scammed project is mostly in airdrops. They'll  advise everyone (thousands of users)  to send a particular amount of gas fee for them to send you their tokens or you've to have about 10 referrals before payment. By so doing many would like to invest and fall as a prey

airdrops are mainly free , they dont ask for a certain fee therfor you cant reall call it a scam . i also heard a kind of airdrop that ask to send 0 eth transaction but this arent also a scam because like i said earlier , you will only be sending 0 value transaction  . its only for activation purposes i think  . lastly , i also came across to an airdrop that requires invites and referall but they are also verified and not scam   . scams oftenly occur on investing schemes and its hard to catch them so we must be aware and take time to ask for others suggestion before entering it yourself

Yes exactly. An airdrop cannot be a scam in it's self just because it doesn't pay. To scam you need to get something out of it and with airdrops they get nothing. Unless... The project runs airdrops they never plan on paying just so they can give their scam project one last push before it dies.

[flash101k]

Thank you for sharing a useful article for us. This is an article that provides a lot of attention to help investors avoid risks. I am an investor, and I have invested in several Scam projects, and that makes me quite disappointed. But if you spend a lot of time analyzing the project and verifying the identity of the project development team. This will help you get closer to success and eliminate a lot of investment risks.

[Mike Mayor]

It isn't always easy to know a scam but people foolishly put support and interest and even their crypto into projects that are no more than a few screenshots or fancy graphics and some advertising and a simple turnkey website and then social media. That is not enough. Every project has that. You need to have something to show. Without something to show I assume the project is a scam. Projects need to take themselves seriously, how caN YOU TAKE a project seriously if they have nothing to show?? You will believe just promises from someone online?

[Ronaldcoin2017]

It is really not easy to know cryptocurrency scam? Some scams are really making a great offer to convince thier victim to invest to buy etc. I believe that the only way is to know or study more about crypto currency and how does it works.

[jake zyrus]

It's a really nice article. Well created and a helpful one, especially for newbies... And I just wanna include that trust must not fully given easily. You must check first if the site or the account is a legit one. But right now, there's a lot of new way to scam people. Knowing that scammers would do anything just to scam others. That's why we should always be careful

[EdvinZ]

The article well reveal various aspects of fraudulent projects. In addition, I want to note that often fraudulent projects are easy to recognize. Usually they offer to get easy money without doing anything in return. Although even Airdrops suggest the fulfillment of a certain condition for obtaining coins.

[Dr.Osh]

It is really not easy to know cryptocurrency scam? Some scams are really making a great offer to convince thier victim to invest to buy etc. I believe that the only way is to know or study more about crypto currency and how does it works.

even serious projects also try to convince investors to invest immediately by offering interesting things. it can be said that the scam project also has the same movement as a good project.

on personally, I find it quite difficult to distinguish projects like that, even when I see a team and others. it's just that, I see the response of people and the information involved in the project. always looking for information about it will show the project is a scam or not.

[BITDV]

I have my own qualifications to identify scams and project who will become fail, for example there's coin launched around two weeks ago in altcoin announcements. I give him comment, and they replied my comment. From those post, if you think like i think. You will predict that those coin will become failed project and then it's true now. I saw in coinmarketcap that their coin only have few thousand marketcap, and trade volume so small. I believe that this project won't survive more than 8 month.

[Bitcoin Seller]

This article is a must-have for every crypto or non-crypto newbie.

Agreed. But actually all these things are so simple that even a child can guess them before investing.

And because its so simple to understand wether its scam or not, so more people proceed even they know that it is scam, since they knew already how it works and how they can profit especially in ponzis.

Simple but there is something that make people blind and proceed to invest though doubted that the site is scam because of good offers. Still simple reminder can help to be more cautious on every action when investing and be alert on choosing the sites where you enter. Scam is everywhere, do not be careless on every click you do.

A universal tool to recognize scam does not exist, because the team of such a project until the last creates the appearance of work and tries to show that everything is fine. Sometimes a project literally disappears in one night, social accounts are deleted. Networks and forums, the site close and all contacts with developers disappear. In some situations, the team makes the appearance of work. After all, most cryptocurrency scams are ICOs.

[Leo]

This is a great article, I commend the writer,  he/ she really buttress the point about latest scam,

The problem with most people falling for scam is that they are lazy in reading about what they wanna invest in,  no adequate research is being carried on by such people, 

[nicecrypto]

The truth is, it is not easy to detect some of this scam project at first glance, some of them have really worked on there presentation that when you see them for the first time you can immediately believe they are genuine, best place to start looking is from the team, if team are shady then rest of project will be shady as well.

[shield132]

What about to just forget easy money? This will fix all the issues. The problem is that people are looking for easy money where they just deposit in some seconds and then money comes in wallet automatically. Don't fall in nice words, even on neutral ones. Just search deeply what the project is about, what benefit do they have from you and why they benefit you, this is main question, why they benefit you. You have to find logical answer here.

Edit:
Startups are a great things to invest in because most of them are innovative, the teams behind them put huge efford in projects. A lot of innovative idea was startup and then developed, money has to be put where it's needed, it's great opportunity for investor when he has money and another person has ideas because they can unite and create something great.

[Oilacris]

What about to just forget easy money? This will fix all the issues. The problem is that people are looking for easy money where they just deposit in some seconds and then money comes in wallet automatically. Don't fall in nice words, even on neutral ones. Just search deeply what the project is about, what benefit do they have from you and why they benefit you, this is main question, why they benefit you. You have to find logical answer here.

A must thing to be think on not only on online investment but also in offline investments as well.Easy money doesn't exist because if offers are too good to be true then they are mostly scams and frauds.People do really fail on realizing the truth behind this one that's why the cycle continues and scammers do continue to exist.

If people are just sensible enough regarding into those easy money schemes then they would easily detect and point it out and avoid themselves on losing money.

[zviadits]

Many people who know little about crypto become victims of scammers. Extraneous sites, spam, newsletters, calls, and more wants to fool you. Trust trusted sources. It would be nice to create a list of trusted companies or projects in which you can safely invest, but it is incredibly difficult to implement

[akram143]

IMO,its simple to identify most of the crypto related scams.

When you see someone saying your going to get huge profits then its scam.

When there is assured amount of profit margin then its scam.

Fake project team or copied whitepaper then its scam.