Safety First

Note: This article is not investment advice. Especially now, never invest more than you can afford to lose in any project.

When BTC dropped from over $60k, it triggered selloffs in most other cryptocurrencies across chains and continents. In and of itself, this isn’t terrible… but a down market leads to other problems: namely, an increase in scam projects and exploits.

There are a significant number of investors who bought in while BTC and other currencies were higher than they are now. Some of those investors aren’t used to crypto’s volatility, and “holding” isn’t in their vocabulary. In other words, those investors might be especially desperate to make up their recent losses (if they sold) by looking for promising projects.

Well, unscrupulous project owners are all too happy to make promises that sound good but are impossible to keep. Like:

  • Our token will hit $10M Market Cap in a month! (No one can predict the future. Never believe anyone who says they can.)

Always look for actions over words. A flashy website doesn’t mean the underlying code is solid, nor does a crappy website mean that the code is good. While there are no foolproof rules to protect you, we have a few suggestions:

  1. Read the project’s documentation. Search for similar phrases on Google to see if it is copied from elsewhere.

The biggest rule, though, is never invest more than you can afford to lose. Not ever. If a project is exploited or turns out to be a scam, you will probably never see your money again.

It’s all about risk tolerance. A down market brings out all the scammers to take advantage of those desperate to make up lost income. This only leads to more lost money. Don’t fall into this trap. If you can’t afford to invest right now, then wait until the market stabilizes. There’s no hurry.

And remember to #staysafe!



Build a safety place crypto token Telegram: Twitter: Not Investment Advice

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