Everyone who deals with cryptocurrency has heard about crypto scams. Unfortunately, even though the situation is gradually changing for the better, there are still many cryptocurrency scams in the industry when scammers steal crypto from newbies and inexperienced traders.
LATOKEN, a fast-paced international cryptocurrency exchange, often writes about crypto scams because it wants to create awareness about this important topic. And so again, we want to help you identify a cryptocurrency scam and not become a victim. We hope that with such topics you might be sure that there’s no LATOKEN scam.
Signs of a crypto scam. LATOKEN review:
- Overly active advertising of a crypto project
Do you think that if the organizers invest huge amounts of money in advertising, they are only interested in the development of the project? In fact, they can do this to raise even more money from inexperienced and naive traders and disappear with stolen crypto.
- Investors cannot withdraw their money in any way
If you have created a withdrawal request, but the money has not been credited to the account for a long time, it is most likely a cryptocurrency scam.
- You are unable to contact technical support
Most likely, technical support does not exist at all, and you will very soon find out that the project no longer exists.
- You notice problems with the website that remain unresolved
Thus, we can conclude that the organizers do not care about the project and its investors. What is more, social media sites show inactivity or accounts closed.
- There are lots of people who complain about the project
People leave a lot of bad reviews. These complaints will most likely go unheard. Users can check social media sites, like twitter and reddit to get information from others
Cryptocurrency scam protection. LATOKEN review
The best way to protect yourself from a scam is to analyze the platform thoroughly. So let’s try to figure out what you need to pay attention to.
- There are times when a development team promises to do something that cannot be done. Deliberately false promises indicate a possible crypto scam.
- If the creators hide their identities, then this is a reason not to trust such projects. This is not an indicator, but it is still worth being all there.
- Lack of technical documentation, white papers, and settlements. Without a work plan, achieving any goal is very difficult, even if the idea is good.
- The number of developers should be appropriate for the size of the project.
- Having a roadmap is a big plus.
- Lack of information in social networks. It is social networks that are most often the basis of advertising for any crypto project.
- Excessive hype. Too much interest can lead to premature closure of the platform and a project.
- The information on the website should clearly explain the goals of any crypto project.
- The cryptocurrency project must be unique. If it has many analogs, then the risk of a crypto scam only increases.
It is essential to understand that if you are actively involved in the development of a cryptocurrency or an ICO campaign, then sooner or later, you will run into at least one cryptocurrency scam. Always do your research!
Attackers and crypto scammers know a lot of different techniques and schemes to steal crypto. To stay away from the most common fraudulent schemes, you need to remain vigilant at all times. One should always check the quality of websites and applications. If a token or crypto project seems too good to be true, it is most likely a crypto scam.
If you want to learn more about different tokens listed on LATOKEN, crypto projects through LATOKEN Review, and tips on how to avoid becoming a victim of a crypto scam, follow us on Medium, LATOKEN Blog, or LATOKEN VCTV channels.
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- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.