Guest post by Gian Allen of Noah Coin.
How do you discern a cryptocurrency scam from a legitimate ICO? Many people are excited about investing in cryptocurrencies but are scared of being victims of the scams of fraudulent individuals or entities.
You worked hard for your money, and it’s what you earned from your own blood, sweat, and tears. So, make sure not to fall into the traps of get-rich- quick schemes such as ICO fraud, phone porting, fake digital wallets, or coin-stealing malware.
Some scammers will create a fake ICO and ask people to become premiere investors. Others will clone a legitimate ICO and dupe investors into sending them their payments instead of the real company.
There are ways you can tell whether a specific cryptocurrency offer is a scam or not. If you’re being promised unrealistically high profits, for instance, then that may be a red flag already. You may be tempted to join cloud-mining services or bitcoin investment packages that will supposedly earn you
unparalleled returns. But, if it’s too good to be true, then it’s most likely a scam!
Another important aspect to look out for is the people behind the ICO. Who are the developers and key administrative members that make up the company? The cryptocurrency industry is dominated by major names in web development, so some scammers make up fake biographies and even invent accomplishments.
Do thorough research on individual team members behind a particular project or ICO. If you’re unable to find information about them on major social media platforms and search engines, then you should consider that a red flag.
Bear in mind that an ICO whitepaper is the foundational document for any cryptocurrency project. It lays out the background, goals, strategies, and timeline of the project and serves as a reference for both its team members and customer. If an ICO fails to provide a whitepaper, then you should definitely think twice and take a step back from that project.
If you notice any of these red flags, then STOP all communications with that particular entity and report them! Here’s an infographic that will help you know more about cryptocurrency scams and how to avoid them.
Check out the infographic below for tips on how to spot cryptocurrency scams, provided by Noah Coin.