Not all crypto projects are created equal, identifying which crypto token is a scam, and which memecoin is legit. How do you know which projects are safe to step into, and which projects are doomed to fall flat some months from now. The blockchain is awash with promises of quick money and easy rides. But it pays to know if the token you’re holding is part of an elaborate scam to separate you from your hard-earned cash. There are eight straightforward ways of carrying out your due diligence to avoid fraudsters
Maybe the best thing to do is to treat all altcoins as scam untill they prove otherwise. With that consciousness, you will become more careful and make diligent research before investment.
6. Check how many exchanges host the token
If the token is only traded on a couple of decentralized exchanges (DEX), it is almost certainly a scam. Listing on a centralized exchange comes with KYC and additional trust, and the bigger the exchange the better the reputation of a listed token.
This is correct. I'm decentralized exchanges many things happen and that is why I do not encourage newbies to use DEXs until they are aware of what they are doing and be strong to take the consequences of their decisions. In Dex people can create counterfeit coins and lure unaware investors to buy what does not exist.
7. Check the amount of liquidity in a token’s balance pool
Before you invest in a token...
Can't this be manipulated?