How To Spot A Crypto Scam

Sherlock holmes - blog
How To Spot A Crypto Scam

For the cryptocurrency enthusiast looking to make the most from the host of new investment options, the prospect can be very daunting a first. While trying to remain safe from fraudulent ICO’s, dodgy coins and tokens, sketchy third party trading sites and scammers trying to hack into your wallets, it can feel like the wild west.
I completely understand....
When I started in 2017, it was the wild west. Tech has become much more efficient however unfortunately the scammers have become more savvy too.
So how can you protect yourself?
Blockchain and cryptocurrency is the fastest developing tech we’ve ever seen. Even experienced investors may find it hard to keep up.
While there’s no guarantee a blockchain-related startup will be successful - just like any traditional business, I’ve outlined some steps below that can help you to be as protected as possible so that you’re not falling for a scam.
So go ahead and channel your inner Sherlock Holmes to do some research when looking at any opportunity.

1. Discernment
If it sounds too good to be true….it probably is.

2. Project Development Team
Thoroughly research the project team members before you invest. Check the development team’s previous projects, see performance of past projects, long term functional value (use case) of the project. Simply start with Google and LinkedIn and follow the thread
If it’s an anonymous team, big red flag.

3. Security.
Never, ever send your crypto to a wallet or website that you don’t know is genuine. If in doubt, don’t do it.

4. Project Strategy
What is the long-term goal of the token or the protocol – is it just to acquire new investors? Are the goals realistic? What's the ROI?
Check on the website for whitepapers, evaluate if the tokenomics work out for the strategy

4. Partnerships
Notable investors and entrepreneurs, who have spoken about the project. (NOT just influencers or bots/trolls) also Universities, Government & Institutional affiliations.
Try to verify any additional partnerships from other reputable sources, beyond online communities/forums.

5. Licenses and Registrations.
Check Financial Services Licenses if it’s a trading company or offering financial products and services.
Check Registration of company is valid and where it is registered.
Note: numbers on a screen (website) does not prove any trading is actually taking place.

6. CommUNITY
Be actively engaged in communities where you can ask questions. You’ll find many people more experienced than you are always willing to help,  crypto is very much about community.

7. Knowledge Is Power
Get educated about the blockchain so your discernment improves.  We have dozens of free workshops and paid coaching to help you develop new skills. 

In conclusion, there is always a risk involved in investing. If there wasn’t we’d all be billionaires…..
However taking educated risks once doing your due diligence is not the same as being too trusting or reckless with your money.
There is always someone willing to take your money.

Remember RADICAL SELF RESPONSIBILITY when becoming your own bank.

Hope this checklist helps you to feel more equipped so you can empower yourself through education.

Keep Soaring ❤


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