Common Cryptocurrency Scams and How to Avoid Them (End)

When in doubt about a message you’ve received, ignore it and contact the business or person via official channels.

Nobody needs to know your private keys or seed phrase.

5. Vested Interests

The acronym DYOR – Do Your Own Research – is often repeated in the cryptocurrency space, and for very good reason.

When it comes to investing, you should never take someone’s word for granted on what crypto currencies or tokens to purchase. You never know their true motives. They may be paid to promote a particular ICO or have a large investment of their own. This goes for random strangers all the way to popular influencers and personalities. No project is guaranteed to succeed. In fact, many will fail.

To be able to assess a project objectively, you should be looking at a combination of factors. Everyone has their own approach to researching prospective investments. Here are some general questions to get started:

How have the coins/tokens been distributed? 

Is the majority of the supply concentrated in the hands of few entities?

What’s the unique selling point of this particular project? 

What other projects are doing the same thing, and why is this one superior?

Who is working on the project? Does the team have a strong track record?

What’s the community like? What’s being built?

Does the world actually need this coin/token?

Finally

Malicious actors have no shortage of techniques for siphoning funds from unsuspecting cryptocurrency users. To steer clear of the most common scams, you need to remain constantly vigilant and aware of the schemes used by these parties. Always check that you’re using official websites/applications, and remember: if an investment sounds too good to be true, it probably is.

No let your village people score cheap points on you.