Differences between a promising project and a scam


The cryptocurrency market attracts investors by its high volatility, as well as by new projects that can yield impressive returns. However, an investor can easily lose all of his investments if he makes a mistake in choosing a project.

This raises the question of how to distinguish a reliable project from a scam and not be left without the investment. Today, the sphere of DeFi and the coins that refer to it differ well. This, surprisingly, attracts fraudsters who try to sell tokens to inexperienced investors. 

We will then list 11 points by which to decide whether or not to invest in the project.

Evaluation of the project team

The first thing to pay attention to is the creators and the project team. As much information as possible on what they had done before. If information is not available on the official website and cannot be found, it is a bad sign. Such projects cannot be invested in.

Find out if the information about the team is true

If there is information about the creators of the project on the site, you should not immediately trust it. The information may turn out to be fake, so you need to check it further. How to do it: usually the information is accompanied by photos of the team, download the photo and check its uniqueness in the search for pictures. After checking, matches may appear. This is certainly a bad sign, which will say that you do not need to invest in a startup.

Promotion with the help of celebrities

When you study the information about the project, you need to check its fake information. In the event that a startup attributes to itself the attitude of a popular person without his knowledge, this is not a very good sign. Promote the team’s social networks. If they do not have at least some information about the startup, most likely, it will turn out to be a scam. If a popular celebrity advertises a project, it is also worth thinking about, especially if the person is not from the field of fintech.

Studying the site

The next step is to study the project site. Why do I need to do this? To find out whether a startup offers its investors a fixed profit or declares that there are no risks. If the site has such statements, then the investment can turn into a disastrous outcome. The fact is that the founders of financial pyramids can usually confidently declare the absence of risks and guaranteed profits.

Remember that the phrases “no risks”,” guaranteed income”, ” you don’t have to do anything” are often uttered by scammers. Therefore, you should not pay attention to such projects.

White Paper

Study the startup’s “White Sheet” with special care. It usually contains the technical characteristics of the token. If the algorithms and principles of functioning are absent in the White Paper, then this is most likely an empty token.

The presence of the token in the blockchain

Checking the presence of a token in the blockchain seems like a logical step, but many people ignore it. For example, you can recall the OneCoin financial pyramid. The project offered investors to invest in a coin of the same name, which was not in the blockchain. Thus, all investments went into the pocket of scammers.

Evaluate the transparency of the project

Another important point is the transparency of the project. For startups that have nothing to hide, the code is publicly available and anyone can check it.

Project history

The founders of the startup will talk about it on social networks long before the launch of the project. This is done in order to attract investors in advance and give information about the development of the company. Dummies register pages in social networks on the eve of the tokensale, and as a rule, the information is updated after.

Read the startup’s chats

It will not be superfluous to sit in the project chats and see what users are communicating about. If the project is reliable, then there will be discussions and discussions with the project team in the chat. Scammers, in turn, create the illusion of a large number of users using bots. It’s easy to find out: if messages are repeated from different participants, meaningless pictures and emojis are often used, then the project is a dummy.

Find out on which exchanges the token is traded

One of the important indicators of a reliable project is the exchanges where the token is traded. If there are few sites and they are not well-known, this is not a very good sign. It is desirable that the token is placed on popular exchanges and has a high liquidity indicator. If the liquidity indicator is small, then the project tokens will be difficult to sell.

Verify addresses in the blockchain

When you make a selection of coins that belong to the DeFi sphere, you need to verify the address in the blockchain and on the project website. There are digital asset databases where you can create tokens with similar names. This is used by intruders.

Conclusion

In order not to lose your money and not stumble upon a scam, it is worth following the above points. This way you will protect yourself and save time and nerves. When the token is selected and you want to start trading comfortably, conveniently and without spending a lot of time on trading, pay attention to the RevenueBot service.

The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 28 thousand customers who earn money thanks to trading bots.

Why should I choose this service?

  • Pay the commission only after making a profit.
  • The bot settings open up a variety of ways to make a profit.
  • Inside RevenueBot, a marketplace is implemented where customers can buy a ready-made bot so as not to bother creating their own, or sell their own if the configuration has shown efficiency. Also, the services of a mentor (an experienced customer of the service) are purchased on the marketplace, who is ready to answer the questions of newcomers. Over time, you can become a mentor yourself, getting additional profit for this.
  • Regular updates of the service’s features that optimize the trading process.
  • The presence of the RevenueBot referral program allows you to earn money on trading, even without resorting to trading. Attract new customers for the service and get up to 30% of the profit they receive every month (but not more than 15 USD).

This is a small list of the advantages of the service. You can continue to list the positive qualities of RevenueBot, but why do this if you can go to the official website of the service and see for yourself everything? It is highly recommended to make decisions faster, because the crypto market does not stand still, but grows at exorbitant steps. Who knows how much profit is missed by someone who does not dare to come and start trading with RevenueBot.

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