How to identify “scam” projects around you?

During the active period of the market, projects mushroomed. However, there are many "scam" projects among them, which are hard to guard against. How to identify these projects and avoid becoming a victim? Here are some practical suggestions:

1--Be wary of over-promise

If someone keeps trying to sell you a project and promises huge benefits that make it feel like a chance to get rich overnight, then that's probably a red flag. Really good projects often do not need excessive publicity and promotion because their value will be recognized by the market. If you have doubts about a project, try reverse thinking: If this project is so good, why are they so eager to get you involved?

2--Stay away from unreasonable "shell" projects

Some projects are branded as platform coins or community coins of well-known exchanges, but in fact they are just a "shell" and lack actual value and future development prospects. These projects may bring you some small gains in the early stages, but in the long run, their value will gradually return to zero. If you come across a project like this, it’s best to be vigilant and not be fooled by superficial hype.

3--Don’t be fooled by the “pattern”

Sometimes, promoters of some projects will use “patterns” to confuse investors and make them believe that their investment decisions are correct. They will tell you not to sell in a hurry because bigger gains are waiting for you later. However, this statement is often based on subjective conjecture and false propaganda rather than objective facts. Therefore, investors should keep a clear head and not be confused by this "pattern".

4--Break cognitive limitations

People tend to fall into their own cognitive limitations and think that they already have all the knowledge and information. However, in the world of investing, this idea is very dangerous. In order to break through cognitive limitations, investors should take the initiative to learn and understand market dynamics and improve their cognitive level and discernment capabilities. Only in this way can we better identify “scam” projects around us.

5--Keep a rational and calm attitude

Investment is a long-term process that requires investors to maintain a rational and calm mind.Don't be affected by short-term market fluctuations, and don't be fooled by some superficial publicity. Only by maintaining a normal mind can we better identify "scam" projects around us and avoid becoming victims.