Scam coins in the cryptocurrency world are coins that do not add value or have any use other than making the creators wealthy.
Bitcoin is the most well known coin, but there are plenty of Alt-coins, Bitcoin clones or new coins with purpose, mining pools, a whitepaper, and a form of exchange. Not all Altcoins are good investments, or will hold up over time. Investing in Altcoins is like investing in Penny Stocks in the stock market – Potential reward, Great risk, and many “pump and dump” schemes to increase the value so the early investors (scammers?) can cash out. Please read on to learn some techniques for detecting cryptocurrency scams and altcoins.
complete article: https://bitcoinmoneyman.com/blog/2018/01/30/how-do-i-identify-a-fake-or-scam-coin/
