Tips to Avoid Cryptocurrency Scams in 2020

Although the ICO hype ended in 2018, cryptocurrency scams are not yet completely vanished. In fact, it is very likely to see a new surge in fraudulent projects, given that people are locked in their homes and desperately need a fast income stream. Many scammers will try and fool people with overly realistic returns, but they could be spotted easily with the tips we’re about to provide.

Tip #1 Question the reliability of coronavirus projects

The coronavirus pandemic had rattled the world in 2020 and some people view it as an opportunity to make money. How cryptocurrencies perform during an economic downturn is still a mystery, but despite that, some are thinking they will manage to make money by joining a project offering huge returns, with no risk, and very fast. Authorities around the world had already sound alarm bells against such scammers and you should be careful as well. Although the coronavirus is a popular topic this year, that does not mean it can be used as an opportunity to make money.

Tip #2 If it’s too good to be true, walk away

One of the best ways to spot a cryptocurrency scam is to analyze what is promises to deliver. Scammers generally target naïve people that thing returns can be generated without breaking a sweat. If the project guarantees you’ll make money without risk, the reality is completely different. Getting involved in the cryptocurrency industry means dealing with one of the most challenging markets in the world. Returns are not guaranteed and in addition to that, it could take a while until you see some results. Now don’t get us wrong, there are reliable projects out there, but how they approach people is completely different.

Tip #3 Look for disruptive projects backed by reliable teams

Reliable projects share a few things in common. They don’t rely on fake news to increase their image but instead are transparent and honest. To avoid crypto scams it will be best to look for disruptive projects created and managed by people with a solid background in their field. The white paper published by all projects represents just promises. Delivering on those promises will fully depend on how the people working to get things done operate. Your area of opportunities will get narrow if you analyze projects from this perspective, but the good news is that the chances of you being stuck in a scam are reduced meaningfully.