With my little experience so far, I have come to realize that most crypto projects that promise Investors excessive returns on their Investment eventually turn out to be scam.
I once participated in a a certain project that was giving Investors about 5 times (5×) bonus during their presale. The team kept postponing the exchange listing date until everybody got tired of them and realized that, it was a scam project. When the complaints on the Telegram group became too much, the project team just abandoned the group, leaving Investors with bot.
1. So as a new trader, it is always important to do your own research before any Investment with any upcoming crypto project.
2. Invest what you can afford to lose
3. Try to avoid some of these projects with that promise outrageous profits on investment, most of them are not realistic. How can you expect 300,000% annual percentage yield from a new project?
It is not just only high profit projects but also new projects that has no recognized dev or team. There are plenty projects in the cryptocurrency market that are prone to scam which is one of the major reason why we should always do research before jumping on any project no matter what weight have heard about it. Many of the cryptocurrency projects we have now are mainly hype which is the centre of attraction for investors to keep investing in such a project. When the hype is gone or finished the project might end up becoming rug pull or losing momentum.