Every month a new cryptocurrency is being launched, including many initial offerings of coins. As cryptocurrency was pounded in 2018, but there is still an increasing appetite for several opportunities among many investors. All these factors make it easy to scam, in this way. Investors who are trying to invest in hypothetical cryptocurrencies are in danger of more fraud.
The idea of making many new investments in cryptocurrency, without having any issue so scamming and fraudulent coins, overwhelms the investors. It is not possible just to remain up in blockchain technology and terminology if cryptocurrency, even the experienced investors have to face these problems. Here are some points, that will help you to remain secure from scams and frauds of cryptocurrency and startups of blockchain.
Find the team
The actual team or developers behind any cryptocurrency or initial offerings of coins is perhaps, not easy to determine. There are many major known names in the field of cryptocurrency like Vitalik Buterin, who makes and break team for new projects. So, it’s become easier for scammers to make fake founders.
You make check the originality of the founder by searching their profile on LinkedIn, see whether the activity and interaction of that person are according to the number of followers, then check the qualifications are accurate, as it is important to check the background of the team. Inspect for the experience of the founder, and relate it to the project.
Check the Whitepapers
The whitepaper is the basis of cryptocurrencies. It must have objectives, plannings, concerns, goals, and complete knowledge about the coin. Sometimes it occurs that a company is claiming many things on a flashy website and their concept is completely failed. Or a company have not much good website but still has a solid plan in the whitepaper.
Thoroughly analyze a white paper, search for materials like legal concerns, spreadsheets, SWOT analysis and plans to implement concepts. Don’t go with the companies that have no whitepaper.
Search for token sale
You should use a token system, for facilitating the process of crowdfunding. Real companies make this process simple for investors to take a look at the status of the sale of tokens and the system’s progress. When a company makes it difficult to keep an eye on its sale token, it is not a good sign, its red flag for investors.
It is an obvious thing that the greatly successful cryptocurrency company will be the one, which has a stronger structure. Sometimes launches died off after the initial interest are disappeared. If you want to become successful in investment, and want to achieve your goal. The company should develop a captivating concept on this point, but the thing is the concept should be executed in short as well as long term goals.
You should choose the company that will update you regularly about their progress on the website of the company. Besides this, if a company is giving you the timeline about the happening and process of development, it must be useful.
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