As the number of cryptocurrency users grows and the currency becomes more popular, scammers and other fraudsters emerge and attempt various attacks to steal your assets. To avoid and protect your cryptocurrency assets, you must take serious steps. They will always attempt to deceive a large number of users in order to defraud them.
RED FLAGS TO BE AWARE OF BEFORE INVESTING.
One of these tricks involves red flags, which are warnings from the company, crypto coin, stock share, or anything else to the investors that these companies are not legitimate and are attempting to scam them. For a more detailed explanation, consider this: when a company offers unbelievable high profit return to its investors, it indicates that the company is in trouble.
When a company is in trouble or is attempting to defraud its investors, red flags go up. When they offer antique schemes that a person's mind will not accept, it serves as a warning sign for all of this company's investors. As a result, in order to make you all aware, I've chosen the topic of Red Flags for today's post.
There are numerous red flags to look for and investigate before investing in cryptocurrency, but I will highlight the three most important ones. These types of knowledge are especially important to understand in this day and age, when scammers and other fraudsters are more active and looking to defraud investors. You must understand these points before investing in any cryptocurrency or in any financial market.
Utter lack OF ROADMAP
When considering investing in a company or project, you should be aware of its goals and achievements. Some businesses collect money from investors and give them a good return, but they have no long-term goals. They only say that we have an investment project and nothing else, then a red flag appears and warns us that the project is a total scam. A roadmap is essential for a company or project's future success, and its absence is unquestionably fraudulent.
There have been many projects in the past that have committed fraud in the same manner as #bestbuy, which recently committed fraud and stole a large sum of money from investors. They did the same thing in that they did not define their roadmap and simply collected money from investors. Unexperienced investors were duped into participating in this scheme and lost their money.
IMPROPER WEBSITE DESIGN AND LACK OF WHITEPAPER
There are some fraudulent websites. When you click on their link, you will be taken to a rough and poorly designed website. There is no such beauty or finishing on their websites, indicating that they are a scam. Their grammar and spelling are incorrect, and their websites contain a lot of copy/paste content. They also failed to define the whitepaper for their work and project.
Whitepapers are essential for any company or project that wants to be innovative. If you were unable to locate whitepapers, you have three options.
a) The project is either a scam or a fraud.
b) The project's creator is unknown or does not want to be revealed in front of the audience.
c) The project is more immature, and they have no such long-term goals, indicating that your investment is at risk.
INAPPROPRIATE BEHAVIOR AND LONG-TERM WITHRAWAL METHOD
They are very rude on social media and only speak politely when they are trying to convince you to invest your money. After that, they will not even listen to you or respond to you for several days. They also attack your questions and respond in such a way that you will not understand the point you were asking about.
They always offer long-term withdrawals of 24 hours, one day, one week, or even one month. They won't give you a quick withdrawal because they won't pay your money back in general. When you come across such withdrawal limits, you should assume that the company or project is a total scam.
Like #bestbuy, who offers a 24-hour withdrawal period, they always pay you late because they believe they must flee with all the money. As a result, it is best to avoid companies and projects whose withdrawal is not immediate. Just like HIVE, you can withdraw your hive in a matter of minutes.
These are three red flags that you should be aware of before investing in cryptocurrency or any other project. I hope you find this post useful and informative; if you do, please remember to reblog it so that it reaches as many people as possible and that they get the most out of it. Also, remember to upvote, which will help me financially and grow my account.
- NOTE: PICTURES ARE TAKEN FROM CANVA AND EDITED IN CANVA.
DISCLAIMER
Please keep in mind that I am not a financial advisor. Never, ever take anything I say as financial advice. Conduct your own research. Before making any investment decisions, consult with a professional investment advisor! My posts are strictly for entertainment purposes!
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Best Wishes.