Today, it’s a little bit difficult to enter the crypto-market as there are more and more people trying to take advantage of the new comers who don’t understand well enough the domain.
Because we think these people harm a lot the whole crypto-thing, we think that we hae to share a small knowledge with the many. In this article, we want to tell you about few red flags you should try to detect for all crypto-project.
Each crypto-currency is linked to a project, so you should read about this project before investing. Most of the informations can be found on the website and into the whitepaper. You should be able to identify quickly the purpose of the coin. If you don’t find any real life utility, the project might end up dead. Any project with an abstract concept or a basic roadmap should make you think twice before investing in it. At some point a lot of masternodes coins are just DASH/PIVX clones and don’t have any goal on the long term.
When you make your research about a project you’d like to invest, take a look to the team. If they want to remain anonymous it might be a red flag and a way to exit scam.
Also, if the devs are involved in many projects at the same time, try to look further before investing. If one of the projects they’re working on is not profitable enough they might just dump it and leave it for dead.
The economy (supply, price, ROI, …)
When you look at masternodes coins, some of them promess you torrific ROI that could go as up as 15000% per year. It might sound a good idea for a « get rich quick scheme » but it’s also seems too good to be true. At some point people who got involved earlier will dump their rewards on the new buyers.
High premine can also be a red flag and a way for the scammers to dump on investors once it hit the exchanges.
Now that you are aware of the main points to check, try to minimize your risks :
- Check every channel you can (discord, telegram, twitter, website) to look after the red flags, talk to the community and take your time before making any investment. Find legit teams and projects. Check the team github to see if there is regular updates.
- Try to find a decent entry and not FOMO buy during a pump.
- Have a plan and sell your rewards on a regular basis to cover your expenses and secure some profits.
In Masternode Wizard we try to avoid the most obvious scams but we can’t be responsible for your decisions to invest. We’ll delist projects that are harmful to the new comers.