DYOR (Do Your Own Research) A Crypto Research Guide for Newbies
CRYPTO SCAM GUIDE

DYOR (Do Your Own Research) A Crypto Research Guide for Newbies


A Few Tips and Tricks for Researching Crypto Assets.


Crypto Scam Guide: How to Avoid Crypto Scam Coins

It can be a daunting task when learning how to invest in Crypto, so take some practical steps when researching crypto projects.


You found a currency or project you're interested in. Great, but before you hit the markets and start scooping up big bags of some unknown token, take the time to do the research needed first and save yourself from the frustrations and losses that can occur when buying into a scam or dead project.

First of all, understand these fundamental truths.

There are countless scam projects in the world of crypto. There are also countless dead and worthless token projects that take hundreds of millions of dollars from unsuspecting investors every year.

There's big business online peddling scam coins and they get more and more sophisticated every season. These scams can be a simple as a one man operation opening up a Telegram group page with a fake ICO or they can go to the limits and even get listed on large exchanges.

Some have great websites, graphics, videos and go all out into developing their scams. Some barely do much more than open a social media account and get listed on unheard of exchanges.

The point is, it can be difficult to figure out what project is on the up and up and which ones are purely scams. Even the best researchers can get scammed, but far less than the average newbie who has no idea what they're doing.

Take These Precautions Now and Avoid 90% Of the Junk and Punk Scams In Crypto.


A Few Tools of the DYOR Trade


The full scope of everything you can do to fully research a project can take virtually hours or days to complete.

Ethereum Address tracing, opening a line of communication with project leaders, assessing ICO and OTC sales and team payouts. There's a long list of all the things you can do to research projects. What I'm sharing are some fundamental principles that can easily help you stay clear from being scammed.


1. USE GOOGLE

 

Get used to idea of using Google Lens. When you visit a website for a project that you're interested in, take a look at the graphics used on the website. Even the Ticker symbol itself should be checked for duplication or plagiarism.

Use Google lens to search different pictures. Especially in the project's WhitePaper or in their technical information pages. This technique is especially useful with team members and face shots. 

What to look for: Stock Pictures that anyone can use. Actors or models being used for team members. Stolen graphics from other websites or manipulation of other symbols or graphics. Basically anything out of the ordinary, copied works, people or graphics being used on other websites, dead end social media profiles or anything else you see that could be questionable.


Poorly Written and Copied WhitePapers or Website Media.

You can easily spot a scam just by using your own two eyes or your reading comprehension. Not that it works every time, because translation from a project's native language to English can make for a poorly written whitepaper or textual media on its own, but most of the time, scams are written in very poor and unprofessional English.

You can highlight a paragraph or a sentence and web search it. Sometimes you'll discover plagiarism or just copied content from previous scams. This is useful for team member names, project descriptions or technical documents.


2. Follow Social Links

I can't express this enough.

Follow all social links!!!

This is a huge time saver.

Visit their Telegram, Twitter, Facebook and other social links.

A scam project normally drops out from managing their Telegram pages, shuts down or changes their name and handle on Twitter or closes their Facebook page. 

Scam projects are normally very unprofessional and unorganized. They use fowl language, can be very rude and oftentimes leave huge gaps between their last post and the current date. Inactivity and forums being overrun with scam chatter and outside links are normally a good sign a project is a scam.


Some Red Flags

  • Unresponsive Community Moderators.
  • Rude and Abusive Language
  • Website is down or no longer available
  • Social accounts are inactive or closed
  • Community Inactive or Angry over scam
  • Copied or fraudulent pictures
  • Copied or reworded whitepaper
  • Plagiarism and stock picture usage
  • Unmoderated forums or Social Accounts
  • Fake Google Play App Links
  • News media releases copied from other projects.
  • Unresponsive team members or dead end social profiles.
Communication and Response Time

Ask questions in their forums or on social media and see what the response is.

A question like, "How is the project doing?" is a valid and useful question to ask that should get a reply.

Have a conversation with a moderator, sometimes just asking a few simple questions can tell you all you need to know. Sometimes scam moderators become combative, angry or frustrated when just saying hello or asking about a feature, airdrop or listing.

When you get the feeling that you've become a problem for asking questions, then that is a good sign you're dealing with scam artists.

Remember..

  • You should be able to get a valid response from a community moderator on a project or via the "Contact Us" page on the project's website. 
  • Communication should be void of promising huge returns or pumps.
  • You should be met with a professional tone and a willingness to help.

3. Study the Project Thoroughly

I always spend plenty of time double checking pictures, websites, forums and social media for the telltale signs of a project's scam score. 

  • Spending just 10mins looking into a project can save you time and money in the long run. Especially when it comes to Ethereum tokens. Anyone with a laptop can create a token and anyone can con their way onto a low scale exchange. So be weary and take your time.
  • Visit their Discord, Telegram, Reddit, Bitcoin talk and repositories.
  • Google the project's ticker and the word scam together.
  • When visiting social media outlets for the project, look for the date of their last post. Look for interaction in comments and ask questions in the threads or posts.
  • Most scams use Telegram and lack professionalism. Check the threads for abusive language, decrees of huge returns, pumps or big prize giveaways that failed to happen. 
  • Pay attention to their CoinMarketCap links and read their graphs. Oftentimes, scams pump early and dump the project. A huge spike followed by a steady deadline, often tells you their scamming. Especially in manipulated Market Cap numbers or high priced singular purchases that create an immediate waterfall of long-tailed sell offs.

Learn More about how the Crypto Community has produced Security platforms that help identify scams.

One of these Projects is Uppsala Sentinel. Featured in one of my past posts.

Hope you find these pointers useful and if you have any suggestions of your own, please leave them in the comments. The more we help one another identify scams the better our crypto world will be.


Jeffrey Allen Kaufman
Jeffrey Allen Kaufman

Podcast Host for the Smash and Grab Show. Tune in on all your favorite outlets. Main account on Anchor. https://anchor.fm/opportunity-investments A Writer with 1000s of Articles and Reviews. Trusted and Honest Content Creator.


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