In the current crypto wave society and industry are experiencing, many fraudulent cryptos have appeared. It is not easy to distinguish a fake one from a legit one. However, you need to be very cautious, otherwise, you will lose all the money.
When you invest in a crypto scam, your details are neither safe. We are introducing you to tips with which you can identify phony crypto from the original ones.
What Is Fake Crypto?
A fake crypto can be the fake erosion of an already existing and popular crypto. Or it can also be an entirely new crypto that is presented to you.
The major cryptocurrency frauds include:
- Fake cryptocurrency exchanges
- Fake ICOs
- Pump-and-dump schemes
- Phishing scams
- Rug pulls
- Fake wallets
- Ponzi schemes, and
- Social engineering attacks
Fake ICOs (Initial Coin Offerings) are something that you should be extremely aware of. Bad actors in society may attempt to act as a real product and trick the investors into investing in it. Or they may also try to get your investments made into compromised wallets.
Tips To Identify Fake Crypto
- DYOR
Remember that, you have to do your own research before you invest in crypto. Yes, you can take the reference of others, the key crypto experts, and popular crypt pages, but you should not be trusting all these blindly. Here are some things that you can look out for:
- The Website
The website of a crypt project is the major thing that you should focus on. Generally, all the genuine projects have a top-tier website that is well-designed and meticulously crafted.
So, if you see that any of the websites are poorly designed and look like something that has been made out of rush, then do not proceed with that one. The founders and developers of the crypto projects are usually master brains of tech and dev, so they will give their best to the website.
- The White Paper
You should always read the white paper. If you notice some unreal data or multiple spelling mistakes and grammatical errors throughout the white paper, then it may not be a real one. The author of a white paper on the real cryptos will often make it the best out there.
- Any Promotional Content?
You should closely examine all the platforms and channels of the crypto to know whether you can locate any kind of promotional content. Know that crypt projects use real-time data and metrics in their channels rather than promotional terms and content.
- Terms of Use and Privacy Policy
If it is a genuine crypt project, then you should be able to easily locate the Terms of Use and the Privacy Policy. You should thoroughly read through it. Also, the current license that the project has.
- Presence Across Various Channels
Check the presence of the project or the company across different channels. You can check the X account and other crypto platforms. Also, you cross-check the details that the company has provided about it on each platform.
- Check Followers
Do not forget to have a hawk’s eye when you look for the follower count. Not only focus on the numbers but also look at the accounts. Make sure that the accounts do not look the same and are not fraudulent.
- Check the Blacklist
Check the crypto blacklists by genuine projects and verify that the specific crypt that you are interested in is not listed in any of the blacklists.
- Look Deep into the Type of Content Across Channels
You can check the type of content the project is posing across various channels. If there is any mismatch between the content or if you get a feeling that it is not legit, then there are high chance that the crypto project is a scam. You should have a practical exercise of researching different crypto projects.
- Use Crypto Tools
Crypto tools like DappRadar can provide valuable information on the crypto project reach. It has further tools that can help you with the research.
The Bottom Line
We recommend you save this article for future reference. Make sure that you research all about the crypto before you invest in it. If you feel doubtful about crypto, then do not proceed to invest in it.
What we provided here is only the top tips that you can use to determine whether the script is fake, there are more tips that you can find. We hope this helped you.
