It can be a daunting task when learning how to invest in Crypto, so take some practical steps when researching crypto projects.
You found a currency or project you're interested in. Great, but before you hit the markets and start scooping up big bags of some unknown token, take the time to do the research needed first and save yourself from the frustrations and losses that can occur when buying into a scam or dead project.
First of all, understand these fundamental truths.
There are countless scam projects in the world of crypto. There are also countless dead and worthless token projects that take hundreds of millions from unsuspecting investors every year.
There's big business online peddling scam coins and they get more and more sophisticated every season. They can be a simple as a one man operation opening up a Telegram group page with a fake ICO or they can go to the limits and even get listed on large exchanges.
Some have great websites, graphics, videos and go all out into developing their scams and some just barely do much more than opening a social account and getting listed on a unheard of exchange.
The point is, it can be difficult to figure out what project is on the up and up and which ones are purely scams. Even the best researchers can get scammed, but far less than the average newbie who has no idea what they're doing.
Take These Precautions Now and Avoid 90% Of the Junk and Punk Scams In Crypto.
Tools of the DYOR Trade
1. USE GOOGLE
Copied Graphic Media
Get used to idea of using Google Lens. When you visit a website for a project your interested in, take a look at the graphics used on the website.
Use Google lens to search different pictures. Especially in their WhitePaper or in their technical information pages. This especially useful with team members and face shots.
What to look for: Stock Pictures that anyone can use. Actors or models being used for team members. Stolen graphics from other websites or manipulation of other symbols or graphics from previous scams. Basically anything out of the ordinary or copied works, people or graphics.
Poorly Written and Copied WhitePapers or Website.
You can easily spot a fake using your own two eyes or reading comprehension. Not that it works every time, because translation from a project's native language to English can make for a poorly written whitepaper or media on its own, but most of the time, scams are written in very poor and unprofessional English.
You can highlight a paragraph or a sentence and web search it. Sometimes you'll discover plagiarism or just copied content from previous scams. This is useful for team member names, project descriptions or technical documents.
2. Follow Social Links
I can't express this enough.
Follow all social links!!!
This is a huge time saver. Visit their Telegram, Twitter, Facebook and other social links.
A scam project normally drops out from managing their Telegram pages, shuts down or changes their name and handle on Twitter or closes their Facebook page.
Scam projects are normally very unprofessional and unorganized. They use fowl language, can be very rude and oftentimes leave huge gaps between their last post and the current date. Inactivity and forums being overrun with scam chatter and outside links are normally a good sign a project is a scam.
Some Red Flags
- Unresponsive Community Moderators.
- Rude and Abusive Language
- Website is down or no longer available
- Social accounts are inactive or closed
- Community Inactive or Angry over scam
- Copied or fraudulent pictures
- Copied or reworded whitepaper
- Plagiarism and stock picture usage
- Unmoderated forums or Social Accounts
- Fake Google Play App Links
- Fake News media releases
- Unresponsive team members or dead Linkedin profiles.
Communication and Response Time
Ask questions in their forums or on social media and see what the response is. A question like, "How is the project doing?" is a valid and useful question to ask.
- You should be able to get a valid response from a community moderator on a project or via the "Contact Us" page on the project's website.
- Communication should be void of promising huge returns or pumps.
- You should be met with a professional tone and a willingness to help.
3. Study the Project Thoroughly
I always spend plenty of time double checking pictures, websites, forums and social media for the telltale signs of a project's scam score.
- Spending just 10mins looking into a project can save you time and money in the long run. Especially when it comes to Ethereum tokens. Anyone with a laptop can create a token and anyone can con their way onto a low scale exchange. So be weary and take your time.
