This article is going to answer how to avoid cryptocurrency scams. It will be educative and informative on some parameters on how to land yourself to a correct non-scam coin. It is going to answer a question that many of you have not been answered.
How can I pick the best cryptocurrency in the cryptocurrency ocean? The truth is no matter how right you have been through your life, cryptocurrency is different, some of them are here to rob us our money. So be humble and read this, it might save you from the scammer’s mouth.
What Crypto Investors fall for
The biggest mistake out there that crypto investors are doing right now is falling for scam coins. They are so desperate that they don’t even do a background check on the coins. Their naiveness keeps them like a hungry lion that hunts whatever they can get. I totally discourage that.
When you want to buy a cryptocurrency you have to do a background check on the coin and see its origin, the owner, and what other people are saying about it. This is very important.
What most of them are doing is that they are fearful and hungry for extra and quick money. To tell you the truth nothing comes easy. You will have to work hard and leap what you sore. Don’t let some online marketers put some fear in you, telling you how much you missing out. Learn how to note FOMO (Fear Of Missing Out) from a distance and avoid it.
I know how it is super easy to fall for the coin after the only marketer tells you about it, and if you have noticed, they don’t talk about any bad side of the product, they only tell you about all good about the coins. So a challenge to you, how about whenever you come across a coin try to look at its bad side. Because everything has its bad side.
Don’t be convinced by the way the person explains the coin, don’t be lured to believe and trust the coin. Instead, do your research and create the trust yourself. They use words like ICO, the blockchain, And another cryptocurrency vocabulary. Don’t fall for this, every cryptocurrency coins have them and they are just some “tech talk”.
Remember this scammer do this for a living, they don’t care about where your money came from, they just want to rob you off it. Sweet talking people is their thing and they are expert in it. They do sales for the coin and they might keep you thinking how much you missed on bitcoin. But let me tell you something I have come to realize, everything happens for a reason but I don’t believe the reason is for some scam coins.
The scammer knows exactly how to play his/her cards safe. They know you want a coin and you have some tokens of cash you can invest, so what they do is tell you exactly what you want to hear. “you will get rich” and “have power over other people for the money you will earn from our coin” isn’t that what you want brothers and sisters.
Immediately they tell you that you will want to hear more and before you know, you have purchased the coin. From then onwards the marketer disappears after accomplishing the mission. Remember when the deal is so good… Think twice.
These scammers sound very smart to the cryptocurrency illiterate, but in reality, they are very stupid and VERY wrong.
You need to understand that scammers will ALWAYS take advantage of a new exploding market (in this case cryptocurrency).
You also need to know the sad truth that around 95%-99% of the “crypto coins” out there are scams.
Spotting a scammer
Scammers always venture into new markets. They do it in markets where there is a lot of demand and something which is new and people want it more than anything else. This way because you have had something lets say like bitcoin, a scammer will come and tell about Xcoin but for the explanation, they tell you it’s just like bitcoin. Since you know bitcoin you will go ahead and buy it without second thoughts.
If you look online these days you will find a lot of coins. But how can you distinguish the legit ones?
Every now and then websites are coming with their own coins, how is this? how did bitcoin and other few have to be the ones on top? Why did the Xcoin owner release his coin before bitcoin?
The answer is simple, these upcoming coins have seen an opportunity to rob us. They have tried to copy bitcoin with the aim of robbing us our money. Most of this coins won’t even be there in a couple of years.
These coins are everywhere, from social media to Google, Youtube, Vimeo etc name any website and you will find a cryptocurrency with a funny name.
For example Onecoin, immediately I heard about this coin from a friend, I hade to do an organic search on it and you won’t believe what I found. Wikipedia calls it a Ponzi scheme (pyramid scheme), what else would someone want to hear knowing what a Ponzi scheme is.
Most of this schemes and non-legit coins are just traps set to the people who are illiterate on the cryptocurrency world and looking to learn. Most people don’t have the ability to see this traps and fall right into them.
Us as the kingcryptos.com don’t have a coin to sell nor a platform for you to trade, but we help you learn about the cryptocurrency so that you are conversant with what to expect out there while looking for a cryptocurrency to invest in.
For example, below is a general rule of thumb you will want to stick to before even considering to think of investing in a new coin:
- If it starts (or started) with a BIG insta-mine (like DASH, for example) definitely you don’t even have to ask questions about it. Run away from it as fast as your feet can take you.
- If it´s exclusively mined by a central authority (like STEEM, for example), be careful brother and sisters.
- If it doesn´t solve any problem in the world (the offline world), then it is not even worth looking at. because its a currency and should have characteristics as other cryptocurrencies.
- If it claims to solve A LOT of problems, then it is probably very hyped. When the deal is TOO good to think twice.
- If it doesn´t have a strong community on social media, then it will probably never be worth anything. Communities educate you and you can judge by how they talk about it.
But the #1 rule you should follow is: Avoid ALL of the new coins you come across until you are sure what you are dealing with. ALWAYS. If not go for what the world know is legit. Some coins have never even been written about in blogs or social media leave alone the CNN.
How To Choose The Best Cryptocurrency?
How do you know the right cryptocurrency? Sometimes I recommend someone doing his own research before investing any dollar. Because anyone who tries to tell you that the “X” cryptocurrency is the absolute best cryptocurrency to invest in, probably has a very large vested interest in it.
In reality, there will most likely be several big winners in cryptocurrency. It’s like the dot-com boom, where companies like Microsoft, Oracle, and Google, etc, ultimately became blockbuster investments.
If you don’t know anything about a coin and your research is not adding up, please stick to what we all know is legit.
Here are some of the characteristics to look for (it will help you identify the good and legit coins):
- They ALWAYS have a LIMITED supply.
- They always follow the crypto philosophy: Secure (if send money to you, you gets it first and in first hand), Decentralized (no geographical boundaries), Anonymous (no one needs to know), Forgery-proof (no duplicate money is possible)
- Solves a problem in the real world that bitcoin doesn´t already solve.
Important: If the new coin you come over doesn´t fit at least the criteria above then run the other direction! and don’t look back because you will have yourself to blame if you do.
Am out now! I hope you found this short article informative. I told you I didn’t have a coin to sell to you but what I have written about is my free give away “coin” to you my reader. We are happy every time we help someone out. Bailing you out of the scammers’ cells is our first priority. We do this with one heart and sometimes we go even an extra mile to review the trade platforms and the coins themselves. We gather enough information to prove to you that a certain coin is either a scam or legit. So keep checking in dear readers because this was meant for you. Tells about your crypto experience. have you ever been scammed? Are you a pro in this world? Do you trade? Leave any comment, concern, and we will address it accordingly. Also, if you got any other questions about this how to avoid cryptocurrency scams post, we will be more than happy to answer them below!
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I wish you the best!
Cryptocurrency trader and blogger on: