Topic: What tips you will give to a new investor to identify scam projects early ? - page 3. (Read 1071 times)

One side for the OP too and one side for those of us here who are still young in understanding. Maybe OP's advice is also useful, especially for newcomers. From the OP to point number 2, namely 2) Asking about the project on forums like bitcointalk where more experienced members can give proper advice. I'm pretty good and that review is what we're really waiting for here.
     

Too good to be true promises in some projects maybe a sign they are just fooling with investors. Social media accounts can be boosted to make it more legit looking that is why it is too important to make your own due diligence. Even with reputable teams a project is not guaranteed to be successful. I experienced projects before on signature bounty that has reputable teams but end up with shitcoins. So beware! 😅

For me, this is the most important because there are a lot of projects that are fake, like whitepapers are fake, their social media or websites are fake, and followers are fake.
Also, check the community because some could be fake, try to google also, and search some keywords. And verify also their team if they are legit because some projects are using fake names or names that are famous without really them knowing.

The reason behind this common pattern in all projects is that they outsource this work to same companies most of the times. Or in worse cases, same person is behind these multiple difference scam coins.

Social media are complete no on. I have been following some older scam projects and they used to populate their social media with paid posts and now they are dead lying with a handful of followers with zero activity. Looking back at the time they were active, it would have seemed that the project would have been a huge landmark one, but of course this is only a facade.

Hence to evaluate a project, analyse their teams their backgrounds and the feasibility of the project and whether it solves an actual problem, like I have said in many posts, such projects are almost non-existant in this niche market.

I certainly agree especially now that everything could easily be faked from followers to ratings, websites and more so we really have to be careful and skeptical. Deep research is the only thing that we can do to double check the legitimacy of a project.
We shouldn't just rely on what we read and what we see as they could be easily faked and manipulated just so they could gain attention and trust of their investors.
We should know the reputation of the team behind each project and check if they have a concrete plan in the long run. Scam projects sre everywhere these days and most of them looks legit so we have to be careful.

Perhaps, we can't fall into scam projects if we are able to determine whether that project is a scam or not but at some point, some promising projects had also turned into scams, and Terra Luna is an example.  I would say that it was hard to determine early if the project is a scam or not because these developers are clever enough to keep their intentions, sometimes we only got surprised.

This is why if we have to invest in crypto, better to choose only those projects that it has existed for many years and still show good performance like BTC, ETH, and BNB.

You will see this point quite a lot of the project is running a bounty campaign to promote their projects. Most of the comments there are just garbage and so many recycled words that is not bring nothing constructive into the projects.

I would not recommend checking the Twitter for this kind of matter, would be better to check the telegram to see how well they manage to answer any queries from the askers both investors or just lurkers. You'll see something good there based on how well they answer and how the supporters acting.

Generally, it emphasizes here the importance of doing deep research on a particular project before investing. This is the most important thing to do in order to avoid falling into scam projects because even if it was suggested by some forum members and any influential personalities, it is our obligation to undergo separate assessments just to make sure that we are investing in the right project. Because what I see is that many people (new investors) had invested in new projects without any piece of information about the project, they only just hear it from some friends and then believe it. But it was not enough, we should be more cautious when investing knowing that scam projects are flooded in the market already.

I do not invest in new coins at all. I created this thread to help other new investors who get tempted from huge returns being offered by new coins. One must avoid these coins or his whole trust on bitcoin and ecosystem will collapse.

refrain from investing in a project that falls under category of shitcoin and meme coin, usually these project have no use case, rarely good products its just plain token that they offered and thats it.
you already do yourself a favor saving yourself from investing into shitcoin which definitely have the potential of scamming you.

The world of cryptocurrency is growing day by day and along with its growth are also increasing its scams and new methods of those scams. So the current situation is very difficult to understand which project is going to be a scam and which project is legit. But even then following some basics to understand scams I think you will want to avoid scams even if you don't identify them. Like seen the background of this project who is behind of this , check the developer, verify the certificates and check the information is true which given by them. Visit their white paper and take help from forum or others community to more info.

By checking some samples you can understand a scam project. Like social accounts of those projects like twitter, telegram, Instagram, YouTube Facebook because a good project is active in all their communities. Also you can research about seo in that project to see how true his experience is. If they are promoting any falsehood then you should abandon those projects.

When investing in cryptocurrencies, it's crucial to be vigilant and cautious to avoid falling victim to scam projects. Here are some tips to help you identify potential scams:
1. Thoroughly research the project: Before investing, investigate the project's background, team members, and advisors. Look for a clear whitepaper, a well-defined roadmap, and a transparent project website. Lack of information or an unprofessional online presence can be red flags.
2. Assess the team's credibility: Verify the team's qualifications, experience, and track record. Check if they have a strong online presence, engage in community discussions, and participate in conferences or industry events. Beware of anonymous teams or individuals with questionable credentials.
3. Scrutinize the project's goals and technology: Assess the project's objectives, viability, and technological innovation. Determine if the project offers a unique solution or if it's merely a copycat of existing successful projects. Be wary of exaggerated claims or promises of guaranteed returns.
4. Review the community and communication channels: Analyze the project's social media channels, forums, and community engagement. Look for a vibrant and active community with constructive discussions. Be cautious if there's excessive hype, aggressive marketing tactics, or a lack of community interaction.
5. Conduct due diligence on partnerships and endorsements: Investigate any claimed partnerships or endorsements to verify their authenticity. Reach out to the supposed partners or endorsers to confirm their involvement and support.
6. Be wary of high-pressure tactics: Beware of projects that employ high-pressure sales tactics or time-limited offers to create a sense of urgency. Legitimate projects allow investors to make informed decisions without rushing.
7. Check for regulatory compliance: Determine if the project adheres to relevant regulations and has obtained necessary licenses or approvals. Compliance with legal requirements is crucial for a trustworthy project.
8. Seek independent opinions: Look for unbiased reviews, third-party audits, or opinions from trusted sources within the cryptocurrency community. Consider engaging with experienced investors or joining reputable forums to gather insights.
Remember, it's essential to exercise caution and skepticism when investing in cryptocurrencies. If something appears too good to be true or if you have doubts, it's best to err on the side of caution and avoid investing in suspicious projects. Conducting thorough research and due diligence will significantly reduce the risk of falling victim to scams.

The risk won't disappear even if you are confident with the project you are investing. There's always a risk in investing and doing research with the project helps you to reduce the chance that you will get scammed or take a loss on your investment. Investing on a project can possibly make you generate good amount of profit but playing safe like investing when the project had been deployed and it is saw by the community that it has a potential, the profit margin you will earn is not that high. I believe knowing a scam project is not a special knowledge but an accumulative experience from various projects. Small details can make you know what's legit or not.

Special knowledge that everyone wants if we can see from the start that the project has the potential to be a scam because it is very difficult even though we have taken the steps that have been suggested, so I have not dared to start investing, especially in a new project, I have tried many times but I am unsure and fear is always there. therefore it is better to play it safe by investing into the old top altcoins simply researching market movements to determine the right time to buy

Poor grammar, spelling or anything that doesn't have to do directly with the project doesn't mean the project is a scam. Sometimes it might be they hired an unqualified community managers and they haven't noticed the manager to be inexperienced for the job. The management of social media is a community manager Jobs.
Some projects teams are anonymous but that shouldn't mean they're a scam, nobody knows Bitcoin founder but bitcoin isn't a scam and we have some other projects like Shiba Inu and they aren't scam. Some projects founder don't like to be the face of their invention but allow the community to be incharge.
Any project that has fake endorsement is a scam, as no real project will want to associate their projects with fake things knowing that if they get caught they'll lose their trustworthiness from their community but scam projects don't care, they're just lookimg for ways to trend so they can get more victims to scam.

 The best way to identify a scame project is if we do some research about the project, the research should not just be on one aspect of the project, but every aspect of the project should be properly researched on, otherwise you might not know if it's a scame project.  Also, there are some projects that have Announcement topic on the Altcoins Announcement board, newbies should look out for those announcement topic of any project and ask some questions about the project in their ANN topic. If a newbie do a proper research about any project, it will be difficult to invest into scam projects.

The project idea of sells then the project will do good, this is a known fact. But most of the newly launched coins don't solve any existing problem rather load up the cesspool of shitcoins with more. Hence you can go by that idea and you will realise that most coins are worthless and thus stop yourself from investing into them. There can be an occasional good apple but that will not get the deserved attention because of the noise made by other coins.

This and working on the team members background yeilds a lot of insight on how the project might progress. I always tell people to give at least a couple of years if unsure about investing and then watch them before buying in.

It is important to exercise caution when investing in the cryptocurrency market. Prior to making any investments, conduct thorough research on the project you intend to invest in. Verify that the project's team members are easily accessible and have a visible presence to the public. Examine the team members' profiles on social media platforms. Engage with the team members to address any inquiries or concerns you may have.

Evaluate the activity level of the project's social media platform. Ensure that the team is actively responding to queries and that the group does not contain excessive spam posts. Be wary of unrealistic promises of high and rapid returns.

Examine the token distribution and supply. If a significant portion of the tokens is held by a small number of individuals or if the team appears questionable, it could potentially lead to price manipulation.

By adhering to these guidelines, you can minimize the risk of falling victim to scams. Most importantly, only invest funds that you can afford to lose.