When looking for what to invest your money into, there are a lot of legit and viable options and there are also a lot of scams and thief's looking to rob you of your hard earned money. How do you identify these scams though and steer clear of them. That's what I'm going to be talking about today.
When looking for a project to invest and put your money into, there are some really essential things to look out for and heavily research about. They will tell you whether the project is a viable one or just some scam that the founders (or rather scammers) are looking to make some fast money from. Without much ado, these things you should look out for include;
1) Technology: Every Crypto project has a technology and is aimed at solving a problem. You have to find out what their technology is and what problem they aim to solve. If that technology is viable and can achieve mass adoption then you can call it safe to invest in them. For instance, Bitcoin's technology was one that sought to achieve easy and quick sending of money around the world. It was to eliminate third-party authority and give the owner of the money complete power over their funds. Now that was a viable technology and sure blew up. If a project doesn't have a technology, run away as fast as you can. They will just paint crazy pictures of how you can make unimaginable wealth through their scheme but you can be sure it will end in tears.
2) Mass Adoption: This is close behind the technology. Mass adoption means is it capable of being used by a lot of people. If a project has the possibility of mass adoption, then you should probably invest in it. This is because as more people come into it, the demand for the goes up and so does the price. For instance, Ethereum blew up because it achieved mass adoption as new technologies would require a Blockchain to host them. That is why till tomorrow, Ethereum will be a profitable investment (the mass adoption will keep growing). So if a technology can't achieve mass adoption, stay away from it as it is probably a scam looking to defraud you.
3) Founder and Team: You should know a bit about the founder of a project and the team that he/she surrounds themselves with. When you can't find the founder or the team behind a project then run away from it as fast as you possibly can because it is probably a scam. Same goes if you find the founder but he or she has had a shady past. For instance, if they have previously been arrested for drug trafficking or money laundering or extortion. You don't want to trust that kind of person with your hard earned money as the most likely probability is that they are running a scam and are looking to disposses you of your money.
Pls be sure to always check out for these. They are the hallmark of a good project and they differentiate a successful project from s scam one.
