With anything that has a monetary value attached to it there will always be those who will try to take advantage of people who don’t know a lot about the asset or market they are trying to get into. 

That’s why it is important that we go back over the basics so that we can help ourselves and others avoid the myriad of scammers that stand to gain from our ignorance. 

Free Giveaways

This one seems rather obvious but its still important to reiterate. Putting it simply, if it’s free then it's not really free. Always ask yourself what and how the person or group that is claiming to giveaway something for “free” stands to gain from what you or other people are giving them. Whether its a small amount of crypto for a bigger prize or your personal information, I would recommend steering clear from any of these. 

Scam Coins 

Most coins before their ICO attempt to raise money so that they can build the dApps or special tech or services that they promise. While it could be a good investment to get in early, there are a good amount of coins out there which seek to “raise” capital for their ICO but end up running off with your hard earned money or crypto with nothing to show for it. The profit potentials are extremely high but the risk associated with it may not be worth it. 

Pump and Dump Shills

Often you will see on forums or in telegram chats people whose TA shows that some coin will moon or that something happening will trigger a strong bullish movement. When seeing these, be very careful and cautious before believing them as the author of the information may be trying to create purposeless bullish movement in hopes that they can dump their coins at an elevated price. This will leave you with a coin that either has no appreciation on the horizon or is a scam coin. 

Was Right About Price Movement Once Dude

These people often make tons of predictions about a price movement say for a coin like Bitcoin and once one of these is right, uses their correct prediction as evidence that they know what the movements in the market will be and are. These people don’t know the movements of the market any better than anybody else so avoid these people at all costs or be very cautious when taking their advice. 

This is just a short list of the many things you need to remember in order to protect your holdings and make smart decisions in the market. Hope these help, it can never hurt to remember the basics!

Share your thoughts down below!