Many crypto investors complin about the crypto scam. As a result, the crypto industry has a bad reputation for money laundering and fraud. One of the most common scams is crypto exit scams. However, these scams can be easily eliminated with the necessary steps. So if you want to invest in cryptocurrencies then following the following precautions can help you save your investment.
Before that, let us understand what are these scams? If you have an idea about ICOs then you can easily understand. As anyone can create their crypto coins, so some evil-minded people take it an advantage to deceive money from the public. Typically, a crypto exit scheme includes a fundraising activity and the organizers of the activity disappeared after raising funds from the public. Now let us understand how to identify such fake schemes and avoid them.
How to Identify the Crypto Exit Scams?
To identify crypto exit scams, you need to research and gain knowledge about the crypto industries and follow regular news. While you conduct research, check the white paper of the cryptocurrency, proof of work, and find the individuals behind the project. Research their profile on different social media profiles and check their background in the crypto industry.
Well, you will never get any facts about the scam, but you will get some signals from the scam. To be honest, you need to approach the crypto market with skepticism. Now here are a few steps that you can follow to stay away from exit scams.
- Check the Credibility of People Behind the Project
The first and most effective way to avoid crypto exit scams is to check the credibility of the team behind the event. Collect as much information as possible about the team members from different sources.
Do not stop only with their official website, check social media, news blogs, search about them on Google. Collect important information about them such as their past projects, contact information, expertise in this area, etc.
You can easily get information about the team members of the project if they are genuine and trustworthy. Because people who have a good reputation in the crypto world will never put their name in such illicit activities. So avoid, investing in such ICOs where you don’t find any proper information about the team member or if you get any signal of misconduct.
- Verify the Information of the Website
Secondly, verify the information on the website, don’t take the information for granted. Conduct separate research about the information provided on the website. Because the project may show you fake information on the official website. Only conduct transactions with a legal website like swyftx.com.
- Don’t Give Much Importance to the Follower in Social Media
Never put much importance on social media followers. Because it is possible to purchase social media likes and followers. If you find that, there are a large number of followers of the team members, don’t consider it as authentic. Check the conversations between the team member and their followers instead.
- Check out Their Social Media Timeline
A trusted individual from the crypto world should have a well-established social media profile. Because they are genuine, and they do not fear to hide anything to the public.
On the other hand, individuals who have a mean motive should have a brand-new social profile. When you find that an individual from the team has a brand new social media profile with no past information on their profile then it must be taken with skepticism. So if you find such problems, then make sure to check their timeline on social media.
- Don’t Easily Believe in Too Good Opportunities
In a general term, some opportunities may look very good. But if you find too good opportunities or promises then you should be careful about it. For instance, BitConnect promised that a client can earn a one percent return regularly. But later it found to be an exit scam. The best approach is to check the promises are realistic or not.
Final Words
There is a very low chance that a legitimate crypto project will get involved in a crypto exit scam. However, you need to be extra careful before investing in ICOs and check the above steps to stay away from crypto exit scams. Visit the leading bitcoin trading app to learn about crypto investing strategies. If you have any queries or you want to share any tips to avoid crypto scams, please comment below.