The crypto market is growing, so are the numbers of fake cryptocurrencies and scams.

Thousands of new cryptocurrencies are launched every month. With these new crypto coins and tokens emerges a series of initial coin offerings (ICOs). Since the inception of cryptocurrencies, their popularity has grown exponentially and is still growing. In spite of the fact that these digital currencies are highly volatile in nature, investors have proven that they are willing to pay money towards the highly speculative cryptocurrency, but they might be investing in fraudulent tokens and ICOs without their knowledge!

There are thousands of cryptocurrencies that investors can choose from and some of them are not even legit. So, it is imperative for the investors to efficiently identify the fakes cryptos and ICO scams.

Thoroughly researching on the creators: One of the best methods to understand the fraudulent tactics is to thoroughly research on the individual creators of a project before investing. The investors have to understand that if the team is legit, they will have information about themselves on the social media outlets, it is a bad sign if they do not find any information.

Avoiding companies that do not provide a whitepaper of the project concept: The ICO whitepaper is the foundational document for the project, which should contain the goals, strategies, background, concerns, and timeline for the implementation of the project. It is best to stay away from the companies that have not provided a whitepaper. 

Staying away from bad tweets and social media updates: Malicious impersonating bots are quite rampant on social media when it comes to cryptocurrencies. Investors should never trust random influencers from Twitter or Facebook promoting any new crypto scheme.

Look for the token sale figures: Legitimate companies and endeavours allow the investors to view the system and the progress of the token sale. If the company makes it difficult for anyone to chart the progress of its ICO, then it is a huge red flag.

Analyse the authenticity of the company websites: There is a surprising number of websites that have been set up to resemble authentic websites, especially when it comes to digital currencies. It is very important for investors to steer clear of these websites. They can research more on such websites and understand the difference between a real and fake website.