What tips you will give to a new investor to identify scam projects early ?

[TheUltraElite]

The team members and their background checks are essential when researching a project. The team often falls out which can be a bad omen on most cases and thus never take the initial team list and final and accept that they will leave when their bags inflate with price and you will have to handle that or get out at the same time.

Next would be going to LinkedIn and attempting to talk to the advisory board about their opinions. They may know about the project and only talk positive which is normal, because of vested interests. While some others may never have heard of it, which means that the site is scam and put up those names just to appear legitimate.

Stock images used and copied white papers are red flags. Still no method is full proof, your luck is a factor here.

[dhruvfire]

The main indicator is that the project is good to be real, those projects that promise the user a lot of tokens, most of the distribution of currencies is short-term, the focus is on paying for advertising and advertising, the developer team controls a percentage of the assets, and there is no long-term plan or thinking to solve a problem.The currency is not required to be scam to avoid it. If it was a failed investment, then it and scam coin are the same, you will lose your money.

You are right. And the saddest thing is that people still fall for these even if these are too good to be true.

[bittraffic]

Just buy the old projects because certainly if they have lasted the bear market, they eventually be among those altcoins that also will go up when bull run arrives. And it seem very close already since halving will be next year already.

Becoming an investor these days while the rest of the world are struggling or even have no access to crypto market is the best thing an indiviual can do this time.

[ahoenk]

not so many scam project nowadays.

first, you need to separate scam project and failed project. i saw many failed project not scam now. i agree we need to do " due diligent " for all crypto project. but the most important thing, we need to understand that project in crypto is just like start up in real life. most of them will fail and the coin / token will never comeback. from 2014 untill now i saw thousand scam and failed project. IMO we need more then due diligent to invest in this industry, we need investment strategy like " spreading investment in many project "

[Ngemmeng]

1. totally agree, because research really needs to be done before investing or supporting a project.
2. if there is a problem that you don't understand you should also ask directly in the telegram group so that you get accurate information from the admin.
3. sometimes bots are used so that posts look crowded and people are interested in reading. Bots on Telegram are used to answer questions frequently asked by group members.

[yazher]

The best thing you can do is don't get rush to invest in any coins that you think are new or old but have slow development and rare updates because these are mostly the red-flagged coins especially new but have some anonymous owners or teams behind them because they don't want to be known they have hidden agenda. They also have other plans when their coins do not meet their expectations. Where they try to reach the soft cap at least, they will disappear with the investor's money, and even though they have huge sales, if they are confident about their anonymity, they will still choose to dump their coins at any moment because no one knows them and no one can arrest them.

[Yamifoud]

Investing in altcoins, especially for new projects is prone to scams so I encourage newbies not to fall into them but rather make a decision to buy BTC and ETH for safety and guaranteed profit when they hold.

Scammers are too clever as we know, they won't let somebody knows their real intention. That is why many newbies got fall into them and just notice that they get scammed after buying. If we are not cautious in choosing altcoins, we are possibly their victims, and in just a blink of an eye, our money was gone forever.

[Yatsan]

Check a project's popularity, people who pronotes it and manages it and more. But these things won't guarantee whether a project is a fraud or not. Unfortunately, even the ones with good credibility in this industry still has a tendency to end up like one 'coz we would only know that it is a scam project once it did its "thing". We saw many projects having huge potential but turned out to be a scam and likewise with suspiscious ones which turned out to be legitimate.

Investing in altcoins, especially for new projects is prone to scams so I encourage newbies not to fall into them but rather make a decision to buy BTC and ETH for safety and guaranteed profit when they hold.

Limiting to established coins in this industry won't be advisable as well. It'll always be better to diversify your money to different projects 'coz it would help managing the risk and generatinf bigger profit if you'd be able to determine or make  close to certainty checking of tokens or project in general.

[MAAManda]

1) Detailed research about the project and people behind the project.

This is important, but not the most vital, of course, the people (team) behind a project will influence how the public evaluates the project which will impact the sustainability and development of the project. The bigger the name of the person behind a team and the more capable the people are, it will have a very good impact.

2) Asking about the project on forums like bitcointalk where more experienced members can give proper advice.

This is a silly way, not meant to judge, but when you discuss a project (altcoins) on the forum, not a few people in this forum think of you as a shiller or someone who is doing soft-shills.

3) Checking the community of the project on social media. If there are lot of bot replies or comments on their posts in social media like Twitter, there is strong chance that the coin price is being manipulated.

This is my way of easily identifying poor projects who are unable to properly manage their projects. And for that reason, they have a very high chance of leaving the project.

[Beparanf]

These are like general advice but do you some specific signs that newbies can spot in scam projects early. What tips you will give to a new investor to identify scam projects early ?

Check the goal of the project is realistic or has a potential. Scam Project roadmap usually just list bunch of tash that can be done on one quarter and they just listing specific task to prolong it. Also if the project keeps emphasizing exchange listing, price boost and influencer marketing then this is a clear sign that the project is a red flag.

For starter, Check the code of the project is it’s undergone an audit since most of the scam project don’t have the time to get an audit for their smart contract and just focus on shilling to attract investors.

[Xal0lex]

A new investor will have a hard time following hints to identify scam projects, because everything is new to him. He won't have any measures to compare one coin to another, because he doesn't know anything yet. For that reason, I would advise him to start investing only in Bitcoin. And only when he gets used to it and experienced about conversations involving altcoins I would suggest him to select some altcoins for his portfolio, following the guidelines mentioned by OP on this thread.

Some things can't be rushed. Time is needed until the investor learns and understands the difference between a promising and unfavorable coin/token, until he learns what is a coin, token, stablecoin, memecoin and their respective features such as PoW, PoS... If you supply too much information at same time, trying to help, he will just get confused.

That's a very good observation. Indeed, in the first year of learning cryptocurrencies, I would advise any newcomer to stay away from altcoins and from trading. It is almost 100% the way to lose money. At the same time, I don't advise anyone to buy bitcoin until you have a basic understanding of bitcoin and the crypto market in general. Buying any asset without any prior knowledge always results in losing money, even if the asset is called bitcoin.

[Nrcewker]

If you are a new investor, then I would suggest you to not invest in any new projects. Go for projects which are already there in the market for long period of time, or atleast projects where big people are partnered. If you do it then, the chances of getting scammed here decreases. Though I won’t directly advise you to invest in altcoin projects, but it’s upto you OP. Projects related to Bitcoins or Ethereum have more chances to give you profits.

[Doan9269]

Just buy the old projects because certainly if they have lasted the bear market, they eventually be among those altcoins that also will go up when bull run arrives. And it seem very close already since halving will be next year already.

This is one of the tips to ensure that we take care of when choosing a project for an investment, they must have a past and long term existing progress in their offer, not that we cannot invest also on the newly introduced cryptocurrencies but they have to be from the reliable sources we have their guaranteed reputation over years in cryptocurrency, because we cannot afford out of our own mistake loose the entire money we are investing on them

Becoming an investor these days while the rest of the world are struggling or even have no access to crypto market is the best thing an indiviual can do this time.

People are investing as long as they have the money or asset to exchange for an investment, there's an open market investment in cryptocurrency where you have the freedom of choosing which cryptocurrency project you want to invest with, when how and where to store your investment asset over time, unlike how it has always been experienced with the traditional financial economy of fiat currency.

[savetheFORUM]

As a new investor who have no clue about market behavior it will be best to stick to top coins, this can't be emphasizes enough because of the various scam activities that usually happens in this space and most especially to new investors who can not identify scam projects from real projects.
It takes a lot of researching, observing and reading different guide to be able to identify scam projects and avoid them but not everyone has the time and patient for it.   

I completely agree with you on that one, I believe newbies who are new in the industry should first learn everything and then think about investments, and initially, the best practice for them would be to only invest in the top and trusted cryptocurrencies that too when they are low in order to learn how trading works if they keep doing that and stay in the market, they will slowly start understanding everything and will be able to identify legit and scam projects over time.

That's why it is better to not invest in new projects if you are new to cryptocurrencies because you can lose your money and won't even earn anything nor will learn anything, but if you invest in trusted coins and learn from them and from around the industry, you will one day be able to easily spot scam projects.

[nyashenka]

Usually scam projects offer so attractive profit that even experience investors sometimes make mistake. If scam projects will offer a small and reasonable profit they will not be so attractive for investors and nobody will invest in scams.

[justdimin]

Just buy the old projects because certainly if they have lasted the bear market, they eventually be among those altcoins that also will go up when bull run arrives. And it seem very close already since halving will be next year already.

This is one of the tips to ensure that we take care of when choosing a project for an investment, they must have a past and long term existing progress in their offer, not that we cannot invest also on the newly introduced cryptocurrencies but they have to be from the reliable sources we have their guaranteed reputation over years in cryptocurrency, because we cannot afford out of our own mistake loose the entire money we are investing on them

This is why I check the people behind it, if there is a project with people who have been good for a while, then I would understand that it is also quite similar for the next project. If those people worked on different projects before and made some money, that means it is going to be quite great for the next one as well.

So, bunch of people who worked in maybe over a dozen different projects as part of something, then could become a bigger deal and make a profit later on as well if they end up building something together. This is why I believe that we should be careful about it, I know that it is not going to end up being that terrible but it is also not going to be that amazing neither if we are not careful. Always look at the team, that always matters.

[Xal0lex]

This is why I check the people behind it, if there is a project with people who have been good for a while, then I would understand that it is also quite similar for the next project. If those people worked on different projects before and made some money, that means it is going to be quite great for the next one as well.

So, bunch of people who worked in maybe over a dozen different projects as part of something, then could become a bigger deal and make a profit later on as well if they end up building something together. This is why I believe that we should be careful about it, I know that it is not going to end up being that terrible but it is also not going to be that amazing neither if we are not careful. Always look at the team, that always matters.

It is in such development teams that large capitals most often invest money. If the project has financing rounds, it means that the developers there are experienced and have some portfolio of their past developments. The higher the level of venture funds is, the more experienced the development team is. Funds also take risks into account, because no one is likely to invest a lot of money in a team without experience.

[albon]

If you are a new investor, then I would suggest you to not invest in any new projects. Go for projects which are already there in the market for long period of time, or atleast projects where big people are partnered. If you do it then, the chances of getting scammed here decreases. Though I won’t directly advise you to invest in altcoin projects, but it’s upto you OP. Projects related to Bitcoins or Ethereum have more chances to give you profits.

Even expert investors cannot guarantee that if they invest their money in a new project, this project will succeed and will not fail halfway or at the end; I know that their experience is undoubtedly higher than that of newbie investors in sniping and choosing new and non-scam legitimate projects, but there are many factors that depend on the success of the project, and it is impossible for them to know what will happen in the future, so I advise the new investor or the one with experience to invest in old currency projects, which have a huge status among all currencies, but he takes into account what happened to the Luna currency and not rush to choose, and if he wants to invest in a new currency project, he should conduct a deep research about the project in all its aspects, and look forward to knowing the team’s skills and previous experiences, as this is an indicator that may help him determine a good project.

[JeffBrad12]

Usually scam projects offer so attractive profit that even experience investors sometimes make mistake. If scam projects will offer a small and reasonable profit they will not be so attractive for investors and nobody will invest in scams.

that should also be a sign and massive one at that that determine whether the project is scam.
I think distinguishing and figuring one is quite easy honestly its just that some people actually getting blinded by greed disregarding all the possibilities of the project they were invested in of turning and becoming scam because
they thought they'd earn massive amount of returns in the future.
thats what happened with most of scam case, they know something is wrong, but the supposed future profit that they thought they'd get make them frenzied regardless with the investment.
I think besides identify through logical means, one should also know self control and avoid become greedy.

[Amejoaquim]

You can go into the official website of the project then checked all of the member of the TEAM.
If they don't put the face of the member of TEAM i can guarantee it almost scam project.