Saving is an important part of managing your personal finance. But there is one other thing that matters even more and that is an investment. Investments are of many types based on the liquidity, tenure, returns, tax benefits, level of expertise required and the control you have on your funds. There is one type of investment that is known to have an upper hand when it comes to liquidity and larger returns and that is trading. From a time where trading was feared by many, we have come to a stage where almost every investor has invested a portion of his capital in trading. Crypto trading, in particular, is known to be a very popular one these days. When you choose an automated crypto trading tool like Crypto CFD Trader you get the benefit of being able to gain impressive profits even without an in-depth knowledge about crypto trading. Whether you pick a crypto trading bot or whether you trade directly you should be warned about the many scams in the market. There have also been cases where coins that actually do not exist have been created by fraudulent groups on the internet. So here are some ways to identify scams when you pick a coin:
- You cannot trace the people behind the project
The team that is behind the coin would be a good place to start your research. If you are not able to find relevant information about the team or the person behind the whole project it would be a good idea to stay out of it. If it is a genuine coin you would be able to find information about the founder or the founding teams on the website or other sources on the internet. And you would also be able to verify the background of the founding members from most social media sites.
- Lack of transparency in the website or in the Whitepaper
The Whitepaper should talk about the process and the objectives. If there are too many gaps when you are looking for information it might perhaps indicate a possible scam ahead. Trusted coins are very transparent in their websites and Whitepaper.
- It is difficult to find the coin in trusted exchanges
If none of the trusted exchanges, seem to have listed the coin then chances are that it is not a coin to bet on. Reliable coins that have shown a significant growth are the ones that are seen on the popular exchanges.