Characteristics of a Crypto Scam You Must Understand, So You Don't Lose!

Crypto scam is now one of the most talked about things. This is due to the lack of prudence of crypto investors. 

Investing in cryptocurrency or crypto is becoming increasingly popular among the people of Indonesia and around the world.

A positive view of the corporate behavior of large companies in various parts of the world going forward has increased public confidence to invest in this sector. But investors should be careful because there are a lot of crypto scams or fake cryptocurrencies out there. 

Crypto scam is a fraudulent act by providing false facts or misrepresenting the aim to mislead investors into buying cryptocurrencies. Of course, the goal of this behavior is personal gain.

Features of Crypto Scam

From the various information I received, there are some general characteristics of crypto scams. If you see one or even all of them, you have to be careful.

Very High Return Guarantee

One of the ways scammers lure investors' money away from them is by making false promises of high returns. Investors, especially startups, hope to get big profits so that many people are deceived and lose money.

Basically everyone who is involved in investing must instill the idiom "no free lunch" which means no profit and no effort or business in the investment world. 

No Team Or Whitepaper

Whitepapers is one of the most important parts of an initial coin offering (ICO). An ICO consists of a cryptocurrency project proposal, how it is set up to create a cryptocurrency, and how the cryptocurrency can be monetized.

This way, potential investors can get an idea of the future and can decide on the right price or decide not to buy it.

Founder Unclear

Like any business or investment, investors can quickly find out who is running the cryptocurrency and the team behind it.

This means we can check their activity, see their background, check their social media profiles, the age of their accounts, their followers, how many followers they have, and so on.

Also read: 5 Good Crypto Coins To Invest In 2022

Offering Transactions Outside of Crypto

Developers can offer potential investors to sign up for a package with a certain return by investing a certain amount. Prospective investors will benefit from cryptocurrency through capital gains or the difference between buying and selling (buying and selling) market.

When a developer offers something that is not a cryptocurrency product, potential investors should be careful to understand how it works because that is outside the process of buying and selling cryptocurrencies.

The worry is that the particular package is unsustainable, or weakening it, or even slowing down the damage to investors.

Also read: 5 Cheapest Crypto Coins with Good Fundamentals for 2022

So understand and identify crypto scam. Potential investors should be aware of this. In investing, the principle of high returns will always apply. Do some research before buying!