Cryptocurrencies nowadays are an innovation where many want to be. Having examples like Bitcoin and Ether, its hard not to desire to enter to this world with the goal of winning. This way, many are looking ways that promise an earning to their investment. This is where people can fall into scam cryptocurrencies, or fraud situations. For this not to happen, we’ll give you 3 of the many ways to recognize a fraud cryptocurrency. We hope it helps.
One of the main approaches with cryptocurrencies’ not necessarily through the creation of a crypto. Many times, scams come from ponzi schemes. A ponzi scheme’s a scam strategy through which scammers pay the investors investment with the payment of new investors. Is also known as a pyramid scheme.
Cases like OneCoin, a ponzi scheme recognized among people of the cryptoworld, are an example of the things to take into account when investigating a possible scam. Promises of high earnings in a short period of time, with the payment of monthly suscriptions or the purchase of “mining” or “education about cryptocurrencies” packages , the need to add more people into the organization. These are only some of the typical characteristics of ponzi schemes.
When it comes to cryptocurrencies, one of the main needs that they have is to be enlisted on exchanges. This way, it’ll have opening to exchange with other cryptos. When a cryptocurrency’s not found on any exchange, you must have the red light on. Places like YoBit, Bitfinex, Cryptopia or Binance have a long list of enlisted cryptocurrencies that can be traded. If you don’t find it on any of these sites, it may not be a trustable coin.
Similarly, being enlisted on trustworthy pages like CoinMarketCap gives a certain level of safety and legitimacy to the currency. Before even investing on a coin that’s somewhat attractive and new, try to investigate if its found inside the list of cryptocurrencies in these pages or any looked like them.
One of the main characteristics of a cryptocurrency based on the Blockchain’s its possibility of cryptomining. The cryptos like this require mining to maintain the blockchain. Without it, it’s hard for the crypto to advance. This way, it’s important to investigate if this coin can be mined, and if it’s not possible, why you can’t. There are cases like Ripple, a cryptocurrency that’s not based on the Blockchain and it doesn’t require to be mined, but that offers a focues and it’s enlisted in the mayority of exchanges there are.
Many are the tips that we can have to recognize a scam crypto. These are only some of the many recommendations that exist for the people when it comes to avoiding cryptos or ventures based on cryptos that are nothing but scams.