How to avoid digital currency financing scams

How to avoid digital currency financing scams

Recently, a wallet project in the name of financial management, took away a group of investors doing over-the-counter trading about 8,000 bitcoins.

Such news has been commonplace, and human greed is really deep in the bone marrow. Although the behavior of this wallet team is very shameful, there are always scammers, and it is impossible to put an end to it. What is more important is that our investors must be careful.

Investment in the digital currency sector is a bit different from investments in all other sectors: no regulation. This has led to large fluctuations in the currency price, and has spawned a variety of speculative methods, which has brought a lot of trading opportunities to investors and speculators. On the other hand, it has brought quite a lot of risks, making a variety of mixed teams. And the project to use this to commit fraud and fraud.

The means of this type of fraud is actually very simple, one is: promise high income, high interest. The interest on general bank financing is now about 5%. Such projects promise 20% or even higher. Often many investors can't stand the temptation of interest.

We invest in digital currencies, especially from the bear market, and wait until the bull market to harvest, the conservative income expectations are several times. This kind of financial management 20% even 100% of the income compared with the fixed investment of coins, even a fraction of the first. Therefore, everyone really should not take the risk to participate in such financial projects for this small profit.

In fact, it is extremely simple to control and prevent risks. It is to refrain from greed and to suppress your own greed. The hardest part of the bear market is that most of the time, investors are suffering, can not see the benefits, only to wait until the bull market will see the sun. So in the dark, investors must stick to it.

Recently, some project parties have announced the introduction of a decentralized model of wealth management. In this way, even if the trading platform goes bankrupt, the investor's assets can be retrieved within a certain period of time.

For such projects, I also remind investors to be vigilant.

If such a project is really a decentralized trading model, and the investor's assets will not be lost when the project fails, the project's source code must be open source. This is one of the basic guidelines for blockchain projects. Only open source code can make the public publicly review and determine whether its trading method is really like publicity.

All well-known decentralized exchanges in the industry are all open source projects, and the operation and trading methods of the project platform can be publicly reviewed. Although not every investor can read the code to judge, the code open source is the basic attitude and practice that the project party must have.

For projects that do similar promotions but the code is not open source, don't participate. Even if this kind of trading method really guarantees asset security as advertised, don't believe it. If you don't believe it or not, you will lose the interest that looks "tempting", but the interest and the currency can't be compared at all. .

The blockchain now belongs to a niche new industry, so most investors are newcomers, it is difficult to distinguish between true and false, and some basic grasp of some principles will at least not be lost.

For example, don't invest in some small currencies, these and possibly air currency pyramids, once the failure is the risk of zeroing.

For example, if you choose to invest in mainstream currency, don't think that the mainstream currency has a small appreciation space. The profit to the next bull market may be only in this industry.

For example, don't invest in some project wallets with multi-level direct sales model. Some things you see are just representations. This kind of project will have a life cycle. There will always be a large number of people at the bottom. These people are at least 90%. the above. (Tao said blockchain)