Protect Your Investment: A 4-Step Guide to Spotting Scams
Protect yourself from crypto scams with these essential checks:
1. Do your research
Verify the legitimacy of the project through:
- A working product (alpha, beta, or testing)
- Real-world evidence and use cases
For example, Grass, a blockchain-based protocol, provides an auditable system.
1. Know the Team
Doxxed (publicly identifiable) teams are more trustworthy:
- Verify experience and credentials
- Undoxxed teams can be suspicious, especially with other red flags
1. Beware of unrealistic promises
Beware of:
- Advertising "Next Gem x100" or "Time-limited Offer"
- Unrealistic profit promises
1. Evaluate contributions
Legitimate projects:
- Control investments for even distribution
- Set reasonable contribution limits
Red flags:
- Unlimited contributions
- High limits per person
Stay vigilant and protect your investment:
Do thorough research
Verify the team's credentials
Beware of unrealistic promises
Evaluate contribution structure
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