1. Lack of transparency: A legitimate crypto project should have clear information about its team, its technology, and its roadmap. If a project fails to provide this information, or only offers vague promises, it could be a sign that they are hiding something.
Certain projects have a clear road map and a good-looking project team, yet they end up duping individuals when they earn their trust and invest with them. Most of these projects with monitoring teams are centralized and can never be trusted; the best thing to do is to gamble some money on them for a while if you are clear with the project road map and have little hope with the project team; use Luna as an example; it is a coin that has grown to such an extent that you could not expect their outcome in such a manner, but the project ends up dead within a short period of time.
3. Lack of community engagement: A legitimate crypto project will have an active and engaged community. If a project lacks social media activity or community interaction, it could be a red flag.
Most projects work on their social media and community engagement first because that's where they will catch enough people's attention with good promises that may end up being false. To me, too many engagements with projects on social media are a red flag because they may quickly scam people through social media.
4. No clear use case: A legitimate crypto project should have a clear use case for its token. If a project cannot articulate a clear purpose for its token, or its use case seems vague or broad, it may be a scam.
Before investing in any crypto project, investors should do their research and look for these red flags. By being vigilant, investors can protect themselves from scams and make informed investment decisions.
Bitcoin is the best option to avoid all these scams, but investing in a centralised exchange is another risk. Therefore, to avoid being scammed by the wrong project, just buy and hold Bitcoin because it is less risky and has a transparent and clear roadmap that everyone can see.