The current situation on the crypto market is not easy. Growth attracted the interest of newcomers who could easily run into scams. At times, it is very difficult to distinguish fraud from a potentially high-quality cryptocurrency, but there are several key factors that will significantly increase your chances of success. In this article, we will introduce 5 basic factors that will help you detect possible fraud, respectively. cryptomens with high potential.
1. Developer team
Behind every cryptocurrency is a group of people working on its development. It is important that you look at this area at the outset. If the developer team is anonymous, for whatever reason, it’s a raised warning finger. Quality cryptocurrencies have their developers published, in the vast majority they are well-known personalities who give the project credibility and credit.
An anonymous team of developers can mean it’s a scam. Therefore, be very careful in the future about such cryptocurrencies.
Much of the success of any cryptocurrency is technology. The cryptocurrencies that come up with something completely new and groundbreaking have the greatest potential. So watch out for the great innovators – cryptocurrencies that come up with something new that is needed and has potential.
In the field of cryptocurrencies, the unwritten rule is that the cryptocurrency, which came up with some improvement first, is celebrating its greatest success. However, this, of course, depends on a number of other factors. You can see such a cryptocene in the article below.
3. White paper
Each time a new cryptocurrency comes out, the company usually publishes a so-called white paper. It outlines the purpose of the cryptocurrency, its technology, operation, and overall vision. A white paper is one of the best places to evaluate the basics. Although many people often cough it up, you should never invest anything until you read the white paper given cryptocurrency. However, as I say, many people forget the importance of white paper.
4. Reputation of cryptocurrency
Is cryptocurrency respected in the community? Does it have a good reputation? If it has a bad reputation, you know you probably shouldn’t invest your money in it. To be successful in the crypto, you must have great confidence.
Always check out videos, forums, articles and see what people are saying about a given cryptocurrency. Another thing is that you want to invest in a cryptocurrency that people trust. You must avoid fraud. So if you find a cryptocurrency that looks like an MLM scheme or pyramid, avoid it.
5. Cryptocurrency community
This is a bit of a double-edged sword. Cryptocurrencies with a strong community and loyal followers usually mean that people have a genuine interest in and trust the cryptocurrency. As mentioned above, mainly watch YouTube and Reddit, and find out the opinions of others.
However, as I wrote, it is a double-edged sword. You can often come across the so-called shillers who are simply looking for new people by praising the project to heaven. This is common for low-capitalization cryptocurrencies, although even a few individuals can move with the price. Therefore, be careful.
Mainly “influencers” and “stars” on YouTube like to promote such low cap projects, which are mostly waste, but these people only use influence to drive naive followers there. They then empty the filled pockets.