How to identify the fake cryptocurrency

How to identify the fake cryptocurrency

How to identify the fake cryptocurrency

The cryptocurrency industry has been booming and becoming more popular with each passing day. New coins are launched on every month, and therefore, people are more eager to purchase them as they know that every coin tends to achieve great heights in these scenarios. If we talk about numbers, approximately eight thousand and seven hundred cryptocurrencies are available in the market for traders and investors. Moreover, the total worth of this industry is 2.61 trillion dollars. This amount is constantly increasing as people become more serious about investing in this sector.


Many digital scavengers are sitting to rob people of all their assets as they can witness the rise in the craze of people for bitcoins and other computer currencies. They come up with new and more clever ways every day to trap innocent or newbie investors who are not very much aware of these frauds and scams revolving around the market.

It is sometimes very intricate to identify whether the website or an application is a hoax or a genuine one. However, not to worry, mentioned own below are how you can safeguard the fund available in your crypto wallet and identify such scams online.

Read my post on crypto arbitrage

Hunt for the whitepaper of the project and the website

This method is one of the most genuine methods by which you can come to know whether a cryptocurrency that you are going to purchase is genuine or not. When launched, every new cryptocurrency also publishes a whitepaper that contains everything from pin to plane of the computer currency.

It mentions the basics, technologies used to create the digital currency, and the design of blockchain used to form it up. You can easily find this whitepaper on the official website of the blockchain developer.

Therefore, it is very important to know the official website and the cryptocurrency developer. And if you are aware of both of them, you can try purchasing the cryptocurrency.

The name of the token, address of the creator, and contract source code are some of the basic details that the developers publish over their websites and are very transparent about them. However, if something is missing or you find anything fishy in any of these details, you should step back.

Track the creators of the computer currency

The first thing that should come into your mind is knowing the creator of the cryptocurrency you are about to purchase. You should gather enough data regarding the developer to be sure about the computer currency. Moreover, the creator’s name should be available on social media platforms. You should easily be able to find the basic details regarding the creators and the fundamentals of the altcoin online to prove its genuineness.

Therefore, another step you should follow before you start investing is finding the details related to the creator and when it was created. Always keep in mind that the creator should never be anonymous.

Beware of imposters

People often trust the predictions and wordings of prominent people in society, such as sportsmen and celebrities. The digital scavengers have become very smart, and they use technology to another level to hoax people. They create fake videos keeping the faces of famous people so that people can trust the coin and purchase it. They can easily edit and create such videos starring your favorite personalities and mislead the inventors and traders into purchasing a coin or currency that is not good for their crypto portfolio.

Therefore, if any such cryptocurrency or altcoin is captivating you and you want to try to risk your funds, go a little deeper. Try to look up the website, the developer, the source code, and everything, and only then transfer the funds to your crypto wallet.

Promising high returns in a short period

When you are investing in any cryptocurrency, the basic idea is to earn profits. Many computer currencies promise high returns in a very short duration of time. It would be best to always stay extra careful when people or any website promise easy money in less time.

Such fraudsters use such tactics to trap the new traders and even the people who want to earn easy money. Therefore, stay away from such schemes and always trust the experts and only the authentic blog articles and details while conducting research and development.

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