How to Identify Cryptocurrency Scams

[CryptoBry]

We know some ICO and IEO are scam with lower interesting by investor, always checks how many investor have buy and invest their money at some cryptocurrency project.

However, this is not always true. There are also big ICOs way back then that turned out to be a scammed in the end, a lot of investors bought that coins believing that it would be a good investment, but sadly, it was just a disappointment for both investors and bounty hunters, that is why identifying cryptocurrency scams would be a headache, the only thing that we could do is just trial and error. But in my experience, the most easiest way to spot if a certain ICO is just a scam is if they can't provide solid information about their ICO, they don't have any website or their whitepaper is just copy pasted on other ICOs.

Of course, scammers are very intelligent, smart and very adoptive to the things happening to the market. Scammers know the psychology of the people who are looking for opportunities to make money so they can be appealing to greed that even the very professionals and experts can be fooled. The only best way to know a scam is when it has already turned out to be...which is of course already very late otherwise one should just shy away from getting involved with this industry.

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[killat]

There are always a few red flags for scams:
- no real/verified profiles for team members
- no or bad references on other websites
- poor social media activity
- poor Whitepaper

[redsun114]

Most scam projects always looks good in the eye with highest offers you can't find elsewhere just to get better attention to the scam project others are
1. Btc doublers xxx
2. Phishing attempts
3. Fake wallets with inbuilt spyware Etc

We should not just be deceived by those things that they painted high in their whitepaper which many of them cannot even keep up to 1/3rd of it, when we see a project, we just need to go outside their whitepaper to verify more about the team because the team is very important in this, if the team is good and verifiable, there is probability that the project will be a successful one because a good team will result to a successful project.

Researching is not easy, but we just need to continue with the research and find ways to ensure that we don't get engaged in the scam project and secondly we should never always have the mentality of committing too much money into some of those projects that we are not clear of, except the one that we are certain will succeed.

[akirasendo17]

We can never tell sometimes even with the group someone will run with the bag of money
but some way know if its a scam or not is to see whether there are already partners that
are already supporting the project and using its technology and tested it , with their clients
and that they have testimonials , legit testimonials sometimes scam crypto create fake accounts
you better research if its true, and also they have enough funds and support also from a big community of investors
that already make sure they will not disappear

[ice18]

Beginners in crypto are mostly the victims of this scams this is very rampant on twitter creating fake accounts of popular personalities and fake giveaways like what stated on the article by OP, the only way to avoid and fall for this kind of scams is to asked first and research before sending any amount of money be vigilant especially if huge money involved be very careful to invest if not sure about what you are entering.

[kshgxj19]

I’m sorry but I don’t think we need to read an article to understand how to recognize the crypto scammer.
I would take your question and separate it into 2.
1.   Read a lot about crypto, especially if you are a beginner. You must know that basic.
2.   Find a trusted company – read reviews about those companies, check their fees, nothing is for free!

If someone gives free bitcoins or any other crypto coins, stop for a minute and check him twice, something is wrong here. And if you already want to believe him, check with his company.
I have experience with a few companies that said they are giving away free bitcoins, with the same name as the company, and apparently it was a scammer.

Don’t believe anyone, read and check yourself with the companies, not the people, this is my recommendation.

[mace15]

Scams are everywhere even in social media we have to be very careful with so many fakes account just to scam people. To avoid these scam we have to research if it is really legit and always look for proof that may answer our doubts. Although at first it is hard to identify but in terms of our money to invest we must do to avoid scams.

[nankers]

I think this article is good for everyone to know to increase our awareness to avoid fraud. indeed it's not easy to identify cryptocurrency scams, but with articles like this at least make us more careful in investing, especially for beginners. I want to add a few tips from me to identify Cryptocurrency Scams. before investing in a project I always check the team of the project, study whitepaper & roadmap and finally always check periodically active or not social media projects

[ololajulo]

As everyone is reading this so also are the scammers, we now PHDs graduate involved in scam, they are very good at it. ICO review sites, crypto big guns as advisers and scammers etc. They dont care any more, they appear at conferences with their pedigree and lie to investors. what have we not seen in this space. If bittrex can be close to scam as an exchange, what can we as an online ICO/IEO researcher do?. every online DD is limited. Just put a few money u can afford to loss into project you find interested.

[Prettyme]

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

It was a great article which really help a lot of investors. This articles should spread out her in crypto world because as bitcoin grows and and become popular more greedy people is thinking a way on how they can get a lot of profit through scamming.  So I am hoping that this article will educate more people.

[TheUltraElite]

Beginners in crypto are mostly the victims of this scams this is very rampant on twitter creating fake accounts of popular personalities and fake giveaways like what stated on the article by OP, the only way to avoid and fall for this kind of scams is to asked first and research before sending any amount of money be vigilant especially if huge money involved be very careful to invest if not sure about what you are entering.

For those who fall or fell of these twitter giveaway scams, I have only one thing to say. These people should learn to judge properly. How do you trust someone on the internet whom you never talked to before and has a fake image as profile pic and you send them 1ETH immediately? People have to be greedy for that 10ETH promised return. Like seriously have you lost your mind here? No system in this world can generate coins out of the blue and multiply it 10times without going through risks. But they have to fall for the greed.

I hope such losers learnt their lesson by getting scammed. 

[mr3dds]

I think the majority are scams or failures 😅
We should try really hard to identify the good ones.

From my view, I avoid projects without real known team. I must think about the success probability of the project idea.

I think there are more ways to identify scams, but that is what I do. I usually don't invest. I join airdrop and bounties most of the time.

I invested in envion and it ended bad. Invested in banker a and it was neutral.

[darkangel11]

I think the majority are scams or failures 😅
We should try really hard to identify the good ones.

From my view, I avoid projects without real known team. I must think about the success probability of the project idea.

I think there are more ways to identify scams, but that is what I do. I usually don't invest. I join airdrop and bounties most of the time.

I invested in envion and it ended bad. Invested in banker a and it was neutral.

There are more ways but you're on the right path.

Use a zero tolerance technique. When you see something that makes you think twice about the projects stay away. When someone PMs you with an offer too good to be true, when their rates are too high, when the team uses small unknown exchange. There are many red lights in every project but when you see 1 move to another don't give them a second chance.

[fitty]

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.

Even pros get scammed too bro.It is not that easy to identify an scam ico or scam cryptocurrency some are very promising but turn out the be a scam after the ICO .Its not safe to say that child can easily identify a scam it takes you alot of experience to be able to detect a scam.

[anoufal]

Looking for influenced people to vouch a project might be another option to identify the quality and easily identify if the project is scam or not, if they trusted the project it means that the project will be followed by more people.

Partly, yes. But as we can see, many influential people are also deceiving us. As recently happened with Justin Sun

[Klausi]

Scams are everywhere even in social media we have to be very careful with so many fakes account just to scam people. To avoid these scam we have to research if it is really legit and always look for proof that may answer our doubts. Although at first it is hard to identify but in terms of our money to invest we must do to avoid scams.

Also don't believe people who are using bitcoin to scam other people. They will come at you and say "do you want to earn money, you money would be double in just 1-3days", they are funny because they are desperate to scam you, they will convince you by their sweet words that have no future at all, and if you fall for their trap since you like easy money, well don't be mad at yourself, if you know what I mean

[Hippocrypto]

Scams are everywhere even in social media we have to be very careful with so many fakes account just to scam people. To avoid these scam we have to research if it is really legit and always look for proof that may answer our doubts. Although at first it is hard to identify but in terms of our money to invest we must do to avoid scams.

Also don't believe people who are using bitcoin to scam other people. They will come at you and say "do you want to earn money, you money would be double in just 1-3days", they are funny because they are desperate to scam you, they will convince you by their sweet words that have no future at all, and if you fall for their trap since you like easy money, well don't be mad at yourself, if you know what I mean

They usually used the ponzi scheme strategy in scamming people, and bitcoin was their escape goat for this evil acts. Their convincing power with a package of lies will deceive a lot of followers, who would become their prey in the long run. Personally I was a victim of this type of scheme, using fiat money investments offering money pyramiding promised to give 80% return of investment.

[ice098]

We must be aware with this, a lot of scammers are circulating in the internet. What they want is to decieve people and get their money. In this day of digital era, making cryptocurrency scams become so frequent and easy. They just need something to attract the people that is why on the first place stay away if the offer was too good to be true. Do research whuch a lot of peoole dont do. This was very important to avoid possible scams.

People should be properly educated about bitcoin so that they could not be easily to be target by those people who wants to earn without making an effort. We must also tell other people how to avoid that scenario , they can lose many money if they are not aware. A proper knowledge is they key. People only wants easy money thats why many people are easily to be fooled.

[karanggatak]

the important point is never believe about what they promised to you. many system like mlm promise you, will give high profit in a shoet time.
you must keep yourself from outside of your environment, like people you dont know, some sit for pishing.
if you want to drive to something new, just learn about what you want to do. sometime you will tricked but it will growth your exoerience

[Jasad]

Just few days after one product of ICO or IEO launching to the public we know the way of scam or success, many scam investment using fake data and using other whitepaper document, you have more careful with your investment choose because not all is save for your investing.