Topic: how to spot Bitcoin and Defi Scam (Read 159 times)

1. A good advice. Markets are moving in cycles and all investors must know this. I've seen many markets going up and down throughout the years already. I've seen Bitcoin in 2017 went up to $20k and months after 2018, went down to $3k. Another is the recent pandemic crash that made Bitcoin's price down by almost 50% in just 1-2 days. Just be patient and wait for a correction to happen because anytime, it will happen. Just be ready .

2. Diversification might be good but on the other hand, if you have a limited amount of money or a small amount of money then just investing into 1-2 coins that you know the safest investments will be a better choice.

3. Almost the same as the first one. No market will go upwards forever. Investors will always have a target price to sell that will cause the market to go down.

4. The best advice that you can give to any trader/investor out there. Being emotionless is the one that I've learned within this past years. I panicked when I'm still starting in crypto but throughout the years, I've learned to become emotionless that is why I don't panic when I see my portfolio going down whether it is a stock market port or crypto port.

These tips might help people but especially newbies out there but overall, there will still be investors who will take the risk and in the end lose their money.

Preventing scams isn't too hard if you use your common sense to take any decisions dealing with crypto. The DeFi system creates an HYIP somehow. During trading, I do not choose any DeFi token due to the high risk. And I forgot about the investment of IEO or ICO. It's really ridiculous how a DeFi toke surpasses Bitcoin price, but in the end, it has been losing price. This means many investors are losing their funds. I think very less project has a real development, they just taking advantage of DeFi HYIP. To be honest, whales are making money from DeFi schemes. So I think it's better to think twice before play with DeFi tokens since we are very small traders/investors.

That's basically what DeFi investors will be hoping for, it's quite obvious for all to see that majority of these investors are only in the DeFi ecosystem just cause of the hype it has been able to garner. There have been quite a lot of hacks and scam on DeFi and that is somewhat an indicator that many of it's projects prolly have only reincarnated use cases that'll not last the test of time, plus there'll be quite a lot of pump and dump coins, and if you're an investor moved by hype, you run the risk of hodling dumped coins.
Project development can be found only amongst coins that are concerned about their long term progress and relevance in the network, it's pretty difficult to find DeFi/Altcoin projects that are really interested in their long term sustainability and development, that why most users view them as only short term 'stuffs'.[/list]

The most important one is promising high farm reward, they ate always too high and too good to be true for those who are cautious, 90% of DeFi projects are far from perfect too meaning anything can happen to them most especially in security wise, if you want to invest in DeFi projects make sure it's big and popular and also the team behind the project are not new to blockchain

The same people who made huge money at ICO during 2016/17 are now profiting again by selling the story of something new and revolutionary they called DeFi. People are definitely very forgetful, even when something bad happened just 3-4 years ago, and now they believe again that they will get rich overnight by investing in dubious projects.

I’m not going to say they’re all scam, but finding that small percentage who really have a real chance of succeeding is a challenging mission - few have the skills to do a good detective job and separate the good from the bad. It's pretty easy to recognize a BTC scam, anything that's too good to be true is a 100% scam - and my advice is to check everything first, don't invest in anything without finding out exactly what it's about.

Beautiful women who contact you via social media are 1000% fake, especially if they mention crypto investments - so if you can't resist the temptation, you better stay away from Telegram, FB, Twitter and similar platforms.

What I have known about DeFi is that it is not yet safe, there are some DeFi projects that even some professionals may risk and later lead to classic exit. DeFI is just like the ICO scam, but they are more complex in a way the scam are more complex too, you can invest on DeFi and lose all the money in just few days, that is why I still do not prefer to make us of such projects until DeFi are safe to use, but as of now, there are many new projects that are nothing but scams. I read about DeFi scam often, the last time I read about it was even less than a week or two ago about the recent one that stole millions of dollars from people.

Nice thread, investment is sometimes complicated, especially for newbies to a particular space like cryptocurrency and it requires a lot of research and practice.

This advice is given a lot, but I tend to somewhat disagree. Investment requires a bit of luck and also a lot of experience. If you hold 5 different shit coins, you're going to lose out in the long run. Most investors who diversify aren't looking to reduce risk, but are rather testing out different coins with the hope the one or more brings profit, sort of like shooting at different birds and hoping one falls.
It's safe to hold different inflation resistant assets, but experimenting with multiple new projects would lead you to lose out.

I just playing in several Yield Farming on BSC, so basicly, we need to know how to check migrator code, mint code and liquidity. If they are saying if they are locked their LP, check how long it, we need to check it from contract code too. From this point are enough to careful from scam project. But, if we are don't know how to read it, we can ask to in group, maybe they are can help us. If not, just stay away from any new project. Also, we can follow https://twitter.com/WARONRUGS/ even they are not guarantee safe from scam, at least we can choose them for options.

Define the (scam) DeFi
DeFi scams [history]

With 242 DeFi projects are listing on coingecko, how many of them will be actively developed and keep moving after the bull market ends? After failures on ERC-20 chains, they swap and will swap to other chains, Binance Smart Chain, HECO chain, and more chains in the future, will the become a better projects with the same teams?

The prices of many of Bitcoin and De-Fi are on an unbelievably ridiculous upswing, some of which are witnessing increases of more than 100% and rewards up to 30%.

Indulging in comments that talk about the price will reach one million dollars, the opportunity will be lost, the price will rise to infinity, which may give you instant happiness, it is not the way to manage your investment.

These risks are for Bitcoin, which thousands of developers have audited its codes and not many trading DeFi projects, NFT tokens or exchanges which have appeared for several months and no one has tried or have active developers.


DeFi is full of scam and you should have an answer to these questions before you put a single Penny into such projects:

• What is the purpose of the project?
  The vast majority don't bring anything.they try to focus on DeFi or imitate successful ideas without even trying to innovate.
  Is this project trying to do something innovative? Are they trying to develop something with their project or are they aiming for profit? How is it different from its competitors? Is there a unique value proposition here?
• Project development, business plan and developer activity: Are developers actively researching problems in the project, providing answers and developing them? Are the developers real or whether they just want to make a quick buck?
• How are tokens distributed?
  A certain extent of decentralization is essential and should be sought in DeFi. One way a scammer can make money is by inflating and dumping market with stacked tokens.

Some things to keep in mind:

• Avoid buying when the price continues to rise, crash will happen sooner or late.
• Reduce your risk by diversifying your investment: It may not be investment advice but put a significant limit on your risk.
• Nothing rises to infinity.
• Avoid panic and emotions trading