How to Identify an ICO & Crypto Scams?

As the cryptocurrency and blockchain develop, an increasing number of unique technologies appear. But there is not a single law that controls digital money.

As the cryptocurrency and blockchain develop, an increasing number of unique technologies appear. But there is not a single law that controls digital money. This contributed to the fact that the number of scammers who want to capitalize on professional investors has also grown. The most common frauds in the world of cryptocurrency are:

1. Pump and Dump – this is how investors invest or advertise their own product, but as soon as the price rises, they begin to sell it and make money off the difference. The bottom line is that many users start investing money only because they see an increase in demand. If you observe this tendency over the past few weeks, do not rush to buy it.
2. Fake exchanges. There has already appeared a lot of fake websites-exchanges on the Internet, the main purpose of which is to deceive users and steal their money. But in reality, these groups are filled with bots who “vouch” for fraudsters. You can never be too careful, so before you register on the stock exchanges, learn about its reputation.
3. Fake wallets. This is one of the classic fraudulent cryptocurrency schemes. To store Bitcoins or Alton you need a digital wallet. But if you register on an unverified site and transfer money there, you can lose it.
4. Pyramids and multi-level marketing (MLM). Cryptocurrency can be obtained in several ways. Any cryptocurrency business that requires you to “do the work”, apart from buying coins, might be a scam.
5. Phishing. Never give your personal keys that encrypt your bitcoins and other currencies, to strangers – addresses and passwords for wallets.
6. ICO fraud. When a new cryptocurrency is to enter the market, it is called ICO. Fake ICOs are incredibly difficult to identify – many professional investors who have invested in currency have also been subjected to fraud. To avoid this, it is necessary to pay much attention to the analysis of the project. ICO Rating is a specific agency, created to evaluate different ICO projects.