Scam Coins: The Dangerous Side of the Cryptocurrency World
The cryptocurrency market has become an area of great interest and excitement in recent years. Many people want to take advantage of the opportunities offered by cryptocurrencies and earn high profits. However, in this market, there are also people or groups that do not have good intentions and just want to defraud people. These individuals or groups try to steal people's money by creating fake or deceptive cryptocurrencies called scam coins.
What is a scam coin?
Scam coins are cryptocurrencies created for fraudulent purposes. After making snow, they are manipulated and disappear in an instant. It is possible to protect from such malicious attempts by doing detailed research on cryptocurrencies.
What are the features of scam coins?
Some common features of scam coins are:
- They promise high returns. Scam coins offer a very high profit rate to attract people. However, this rate of profit is unrealistic and unsustainable.
- They are not open source. Scam coins are usually made on non-open source blockchain networks. This makes it difficult to understand how these coins work and what they are used for.
- They are made by an unverified or unrecognized team. It is very difficult to know who is behind scam coins. Often times, the team that makes these coins is anonymous or uses fake identities. This prevents trust in these coins.
- They use inappropriate or misleading advertising or promotional materials. Scam coins use various advertising or promotion methods to trick people. For example, they claim to be endorsed by famous people or institutions, show fake comments or testimonials, create artificial solicitation on social media, or post fake news.
How can you protect yourself from scam coins?
The best way to avoid scam coins is to do a good research before entering the cryptocurrency market. The following tips can help you:
- Only trade on trusted and reputable exchanges. Cryptocurrency exchanges take various security measures to prevent scam coins and only list verified and quality projects.
- Avoid investing in coins made on open source blockchain networks. It is difficult to understand how non-open source coins work and for what purpose they are used. This increases the risk of these coins becoming scams.
- It can be understood together with the reality of the project team and the examination of the contracts. You should thoroughly research how each coin project came about and should not invest in that project unless you are sure.
- Beware of coins that promise high returns. Scam coins offer a very high profit rate to attract people. However, this rate of profit is unrealistic and unsustainable. Therefore, avoid investing in such coins unless there is a very good reason.
Conclusion
Scam coins are the dangerous face of the cryptocurrency market. These coins use various methods to defraud people and can cause great harm to investors. Therefore, it is important to do a good research and stay away from scam coins before entering the cryptocurrency market.