HOW TO AVOID CRYPTO SCAMS
We must understand what a crypto scam is before we try to avoid them. A Crypto scam is the process whereby crypto holders get scammed of their hard-earned crypto holdings.
TEAM
There is a saying that teamwork makes the dream work. This is true even in the crypto space.
The team is the backbone of any crypto project because they take the project from the idea stage to the actualization of the crypto project. The team of made up of developers, product managers, content creators, community managers, marketers e.t.c
A team should have members with a reputable background who are good at what they do good would be a good sign for the project, while team members who have bad track records would be considered as a red flag.
COMMUNITY
The community behind a crypto project comprises supporters, investors, and well-wishers of the project as they are the ones who ensure that the project gets a lot of traction which will foster the growth of the project. The community may be on Reddit, Facebook, Twitter, telegram, or discord.
There is usually a link to the community on the project website, check out its activeness and the types of conversation they have in their community
How well do the admins respond to members?
PERCENTAGE OF TOKEN ALLOCATION
Every reputable project has a good token allocation.
Any project in which the token allocated to the team is over 50% percent should be watched carefully as there is a risk that the team may dump the token o its holders.
WHITE PAPER
A white paper is a document that contains details with regard to the project. A good whitepaper should contain the use case of the project, its roadmap, token allocation e.t.c
