Topic: [GUIDE] Newbie guide: how to DYOR (and avoid wasting money on scams)? (Read 584 times)

There is an even older tip that is useful for newbies. Do not enter any new project. 99% of new projects will turn out to be a scam, and you will lose your money due to inexperience. It is very difficult to verify team members today, as many applications allow you to create a photo that is not detectable on the web. In addition, team members may be famous, but the people themselves may not even know that their photo is on display in the project.
The surest investment of your money for beginners and not only is Bitcoin. Ethereum is on the rise today, but it is not known what will happen to it next. By investing your money in bitcoin for a long time, there is hope for profit. There is little hope for the rest of the coins; experience is needed to trade them, and time must always pass to gain experience.

I think this is a good time to bump this thread. Because at this time a lot of scam projects have sprung up in BSC and other networks. In fact, trade in APE, really wasted a lot of money on early projects. I am one of those people who likes to look for early shitcoin projects, I don't know how much money has been burned. I'm not the APE trader type, I did a little research before getting in any early project, however, in the end there are still a lot of projects that seem legitimate, losing in minutes, hours and days. various models.

One thing I want to remind newbie is, don't enter the early project with a large value, because if the project is a scam, you won't waste much money. I give an example of my experience, generally I enter the early project starting from 1 - 10 dollars, with this amount alone, I can lose more than $ 100 in a few days. That's why it's important why we manage money for early shitcoin.

*bump*

This is good information and basic enough to be known. And I think that it is not only for newbies but also for most of us here who really want to get more challenges in joining in the new projects.
however, if we are newbies and really new to this. I don't think investing in new projects is a good choice. I will better consider or suggest them to buy and focus on top coins in order to avoid scams, shitcoins, and also dead coins that never listed in exchanges.

Keep your eyes peeled, people, many reports of scams and ponzis lately... Member qwertyup23 created a nice thread recently containing an overview of recent scam projects.

Check them out also before investing any money in a new project.

Top-notch input, guys. I've integrated your posts in the original post. I'll try to cut up my OP a bit in the next days, to make sure there's not too much text.

Excellent explanation post, @1miau!

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[Guide] Identify scam projects by hidden premined coin indicator via explorer

That thread was made in 2019, with the trend of stake & masternode coins. I can not count how many of them are scam. The value of the thread has still been here. Let's check the block explorer of SUSHI and review what happened last 2 day.

What SUSHI developer did is a shame and they moved huge tokens but in some other cases, scam developers move their coins or tokens gradually and you might not notice. Personally, I always check block explorers and investigate movements of big addresses before I consider to invest.

https://coinmarketcap.com/headlines/news/sushi-crashing-over-50-as-sushiswaps-lead-developer-sells-his-tokens/
https://www.theblockcrypto.com/linked/77090/sushiswap-founder-converts-portion-of-developer-fund-to-6m-in-eth

Important point.

People should know how many coins will be in circulation in 5 or 10 or 20 years because it's very important in the long run. To find that out people should know the meaning of the different terms:

(1) circulating supply = coins in circulation, this number is used to calculate the marketcap: coins in circulation x price per coin = marketcap
(2) total supply = (1) + coins currently locked (team / investors)
(3) max. supply = (1), (2) all coins including coins which are still to be mined / staked if PoS coins have such a cap, otherwise it's also (4)
(4) infinite supply (not directly mentioned at Coinmarketcap) = there is no cap currently

While Bitcoin is limited to 21M (max. supply), Ethereum for example hasn't a max. cap yet, so it is "infinite supply". Make sure to check every coin where you are interested to invest carefully. Many shitcoins use this metric to deceive users.





Many PoS shitcoins are still in an early stage and very inflationary compared to Bitcoin. People should keep that in mind when buying them.

In addition, many new PoS shitcoin haven't many of their coins into circulation yet, for example Algorand. Currently, only 1,000,000,000 coins of 10,000,000,000 are circulation, that means 90% will still come into circulation and be added to the total marketcap after some time. Right now, Algorand has a marketcap of 400,000,000, which means the real marketcap with all coins into circulation is already 4,000,000,000. That is a huge difference.

I mean, I agree with you completely on the airdrop and supply aspect. I mean, that's what most of these series of project owners do and they are really getting away with it in because, most users haven't gotten the idea to detect that which is legit and they always come up quite often than you can imagine.
For me, I recommend going with the pros for status. By that I mean, you asking questions and following the predictions of more experienced users in the forum on coins with potentials. You can get this informations on the local boards too as a few users does discuss these issues too. Otherwise, I'll prefer you stick to the already trailing coins like BTC, your safer that way.

Right now it's hard to check if the project is fake or not, they do it now professionally take SUSHI for example you can't even recognize that that is a exit scam it's even listed in Binance, it's inevitable even though you're being careful, there are a lot of factors to consider. I suggest to create another thread maybe try working on how the pump and dump works, or how the token is being manipulated or how to know if a token is an exit scam something like that.

I was hoping to make a nice mix between DYOR and scam prevention, but somewhere along the way, the thread bled to death, although I thought I wrote it in an understandable and accessible way if people remain indeed interested, I'd be more than willing to re-edit it further.

Thx for the great tips.

edit: will work on edit from OP, whilst trying to keep it as short and accessible as possible

A good list of steps to follow, but you did not teach beginners how to do the research, it is easy to say to verify the team, but it is difficult to determine whether the team is scam or real, except by using some techniques, so it is better to add how newbie can search by himself.

[Guide] Prevent scam!!! Some useful tools for find scam / fake ICO team

You can also add a few things to research about word plagiarism, intellectual property, website template theft, and promises that look good to be believed.

2020 DeFi scams are 2017-2018 ICO scams all over again... Time for a small edit and make-over of the original post. The basic message has hardly been changed at all, since the scamming methods haven't changed either.

Be aware that some people have expressed serious doubts about ALL DeFi projects, so keep your eyes peeled whenever you consider investing your hard-earned money in any of these projects.

I think that's a good attitude. Even if the project is trustworthy, the number of airdropped coins is generally very low.

With websites like icorating and icobench, you can quite easily check the quality of ICO bounty projects, to make sure you get the most out of your bounties.

I tend to agree with the OP. Noting also the Airdrop thing, I don't believe in it anymore. I'd rather do the hard way (bounty) to get tokens.

Thank you for sharing your experience. I totally agree with your opinion. And my experience to evaluate quality ICO projects is to see the idea of having projects that apply to life, having actual products, quality teams of projects. In addition, project news is updated daily so investors believe they are actually developing the project

You wouldn't be the first one who got scammed in the beginning or got tricked in believing in some useless coin's potential by shillers who only want to sell their own coins for the highest possible price. These lessons sometimes can be very expensive... It's better to play around a bit with a very low amount, trying out several different exchanges before really investing in several different coins. Don't fall into the FOMO trap. As you can see: waiting has been a lot more interesting lately than buying...

thanks for this, its a great deal for me, had an experience after buying the coin, it was locked for going to 1 year and after a while the site wasn't forth opening again. It was an eye opening for me because I really put in enough for it. I had to learn in a hard way but all the same it thought a valuable lesson to always do enough investigation before you venture into an ICO

As a Newbie do not rush to get a coin. Learn first so know the rules play. Thank's this information is very useful for Newbie.

I agree completely. Sometimes it's so evident, one tends to forget. However, I added it under "SUPPORT". I am trying to keep it short, understandable, easy, blah blah. Just taking in account the 95% newbies with a very short attention span. Feel free to disagree and plz let me know.