How to Tell a Coin is a Scam Coin | Bitcoin,Crypto and Blockchain news and dictionary

How to Tell a Coin is a Scam Coin

Crypto coins, which are developed for scam and money making and are collected in the market, are called SCAM COIN. Such coins are highly valued and advertised and promoted. For a while, the prices are inflated and coins are tried to find a place in the stock market. The developers of Scam coins allocate most of the coins before the coins are released. These pre-stocked coins, called edil premined el, are gradually disposed of by the developers as they gain value and a loaded income is generated by this method. To the list of scam coins published at the end of 2018approximately 500 coins were removed from the transaction. As an example, in 2018, Vitro coin scam coin was understood to be one of the first examples of coin scams.

One of the biggest reasons why crypto coins are seen as attractive by investors and users is that they do not have a center, they are independent. Crypto coins are not accepted by States because they are not already under control. The fact that the coins do not have the center and the independence of the investors may be a little frightened, but the big co- stock exchangesTo know that the equivalent of that investor gives confidence. Factors such as future projects of crypto coins, exchange in stock exchanges, knowledge of the developers, help us to get an idea of whether that coin is a scam coin. Before a coine investment is made, the coin must be thoroughly investigated and made sure that it is not scam coin. Otherwise, all of your money can be wasted and the crypto-money system is an independent, decentralized, untraceable system, so you don’t have a chance to apply to a legal authority.

Scam coin keyboard

Understanding That A Coin Is Scam Coin
Although scam coins try to convince the investor and attract investment, some signs may indicate that the coins are scam coins.

1-Although the crypto coins are predominantly used for investment purposes, the main purpose of a crypto money should not be merely investing. All coins that have made a name and trust have also offered different projects such as ease of payment, transfer types and transfer rates. If a coin addresses investors to raise money instead of users that can be accessed with such projects, it is most likely scam co. In fact, scam coins are merely a means of investment, they are worthless, or they may suddenly lose value without any reason. In short, a project that considers coins not as an investment tool but as a means of payment is far from being a scam coin.

2- Bitcoin accepted sub-coins are all open source software. Everyone can access the source code. Scam coins are not open a lot of time source code. Instead of presenting the codes of the system, they want to paint by offering the operation and the best aspects of the system. The coins in this type of tactic are also scam coins.

3-Coin mining process is to maintain the continuity of that coin network and to meet the needs such as transfers in the network. The provision of such transactions by the platform where the coin is located increases the trust in the coine. If a coin has operations such as cloud mining , it means that the member gets a new member and gets a percentage share. The new sub-members are called ponzi scheme and this is a complete scam coin example.

4-It is very important to know the developers of the crypto coins and their team. Knowing who these people are, and their reliability, is an important element in the security that will be heard. Scam coins usually give this kind of information superficial or very limited.

5-Bitcoin Investing Packages (BIP), so-called bitcoin investment packages, these systems are promised to obtain a continuous coin with very little payment. As the number of new members increases, new coins come, but when the number of new members decreases and stops, the payment system stops. And in the first place the paid money is reset. Coins that offer such processes are also examples of scam coins.

It is very important in the eyes of investors to find a community of 6 coins, exchange ideas and discuss projects to develop. Such communities help increase confidence in coine. If a coin does not have active community groups, it is likely to be a scam coin if it does not share projects and development.

The above points are common features of scam coins. Some have all the features and some have only one. In that respect, it would be beneficial to research the coins before making an investment in terms of the right investment strategy.

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