Cryptocurrency and its exchange have revolutionized the entire money and transaction system. It is surprising to know that the crypto wave has gained immense attraction and appreciation from the entire world at a lightning pace.
However, when a certain commodity or item rises and becomes popular so quickly, it attracts many people to point out the loopholes. By using these loopholes, they commit various frauds. One such form of crypto fraud is that many traders are involved in not involving themselves in legit cryptocurrencies.
There are many online platforms that provide a decent platform for trading but deal in illegal crypto coins. However, with the presence of sources like www.bitiq.org, people have regained trust in digital currencies.
Moreover, experts have suggested various ways and tips to know whether a cryptocurrency is legit or not. The following section will highlight the most crucial tips to identify the authenticity of a cryptocurrency.
Most Effective And Useful Hacks To Follow While Knowing Legit Cryptocurrencies
With growing frauds, a person (beginners) can easily be cheated through fake cryptocurrencies. They should follow the below-mentioned points to get a comprehensive guide while checking the cryptocurrencies.
1. Beware Of Imposter Scams
The imposter scam is threatening the crypto market at an exponential rate. As the transactions are increasingly using digital currencies, fraudsters involve government officials and agencies. They use fiat cash and commit frauds.
In these scams, people create fake videos and multimedia files involving government officials and powerful personalities. Technology plays a great role in facilitating these frauds. These also include big companies and their CEOs to increase crypto circulation. In order to find that it is a legit currency, a person should listen to the features and good side of the currency. Sometimes, too many pros point toward a big scam.
2. Go Through The Whitepaper Of the Project And Crypto Website
One of the best ways or most effective ways to ensure the legitimacy of digital currencies is by visiting the websites of the currency. Moreover, all the launched currencies have a whitepaper. This blueprint provides a user with all the rules, regulations, fundamentals, and technologies being used in the blockchain technology of that currency.
The trader should always look out for the design of the technology mentioned on the website. Furthermore, this blueprint or outline displays the token name, creator address, contract source code, and many such things. It is crucial to understand the transparency of digital currency.
3. Trap Of Romance Scam
In these types of scams, people generally fall into the trap of redirecting toward the cryptocurrency scams page that provides special benefits or offers to get traders. In order to avoid such situations or scams, a person should never involve themselves in money, trade, or investment options completely based on some random person’s advice.
When a person connects with another person emotionally over digital platforms (especially dating sites), they should avoid providing their financial status. They should be cautious about their crypto wallets of authentic cryptocurrencies like bitcoin.
4. Scanning Core Team Of The Project
The most significant tip to identify the genuineness of the cryptocurrencies is to go through the different team members of the project. A person can see these details about the currencies on the official website of the project.
When the website displays numerous details on its website, there are high chances that the website or currency is authentic. This practice can safeguard a trader against extensive frauds and provide clarity on the best options for investing in different cryptocurrencies. Furthermore, a person should quantify the units of cryptocurrencies to purchase.
5. Never Ignore Token Sale
There is always a token or currency system associated with the cryptocurrencies to help the smooth processing of crowdfunding. Authentic and big companies create a real system that tracks the progress of the tokens. It makes it easier for the traders to look at the sale and track the progress.
It is reported that many scammers hide their token progress and fake it to potential investors. In this process, investors are misled to the exact figures of value increment or downscale. It can create a sense of distrust among the investors and must be identified as soon as possible.
6. Mark On The Feasibility Of The Project
It is important to choose the projects with the best set of aims. In other words, it means that a trader should invest in those cryptocurrency projects with achievable and feasible solutions. The project should be time-bounded and achieve desired results with exceptional aspects.
It is essential to test the competitors of a particular company when they launch a digital currency. It also depends on the frequency of the company updating the information on their website. Therefore, in order to avoid being caught in illegal cryptocurrencies, make sure that the project is feasible.
7. High Returns In little Time
A person should beware of fake promises that attract traders. Scammers use the aspect of volatility to influence the price of the cryptocurrency and circulate fake cryptocurrencies in the market. Phishing emails, social media, and many such technical aspects are the results of the fraudulent activities of scammers.
8. Maintain Distance From Unsure URLs
Frauds in cryptocurrencies often include unsafe websites that redirect a person to suspicious activities or web pages. They should look out for the ‘lock’ icon in the address bar of the website to be sure that the website is authentic. Apart from this hack, a beginner should also scan whether the website starts with ‘http’ or ‘https’. Sometimes, websites also use the letter ‘O’ in place of the number ‘zero’ to commit fraud.
There are always different ways for people to take out loopholes and commit frauds. People should always research the competitors, market, and reviews to select the best cryptocurrency. The need for legit cryptocurrencies is real and needs proper attention to specific details. The above guide is a perfect example of the procedure to ensure safety against crypto frauds.