Protecting yourself from getting scammed with Altcoins

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More and more scams are popping up in the altcoin world, it seems like today 1 in 10 are actually legit. The current trend with all these scams is causing the environment around altcoins to become toxic, this is not helping the future of altcoins making a place in accepted and widely used crypto currency. The best way to stop this from becoming worse and ending altcoins is to start protecting ourselves and trying not to support altcoins that put out a coin that can fully take advantage of you and your money. Now this isn’t 100%, scammers are smart and will try their best to get your money, so always remember the golden crypto rule:

London Close Trade Strategy with Vic Noble and Shirley Hudson

Don’t Trust Anybody

Not flinging yourself and your BTC at every dev who promises you all the bells and whistles is the best way to protect yourself.


 Premine not in an escrow?

This should become a standard in altcoin launches. Too many devs are doing hidden premines, or just dumping the premine that they had and closing up shop and leaving with your BTC in their hands. Some people argue that the escrow could take off with this, this is why community escrow is best. There are already established escrow service that are able to be found on BitcoinTalk.org. Also if the premine was split up between a few of these services that would be less chance of the entire premine disappearing. This is much better than 100% chance that Scammy McScammerson runs off with the whole kit and kaboodle.


IPO for bright shiney doojiggy?

Just as with any business, people need to put themselves and their own sweat and blood behind their product. You don’t see people going door to door asking for money because they want to open a shop. You shouldn’t do that with crypto, especially in light of recent events with IPOs. If the product is good and is unique it will stand out and people will want to support it while it grows not before it ever starts.

IF an IPO is warranted and you feel that “Sure this is a good idea, I’ll get a good return.” Make sure the IPO is also escrowed as talked about in the premine.


Self Moderated ANN Threads

This should raise a red flag for you. A competent dev will allow criticism and FUD. If anything gets way out of had as far as the posters go that’s what moderators are for.


The Newbie Dev

Its understandable that you want to have your coin name showing up when you post. Guess what? That’s what signatures are for. With all the scamming going on, the need for reputation and the common knowledge that this dev with a new coin knows his ass from a hole in the ground is immense.


No Source Code 

Any coin that is legit is Open Source, this means you can review and alter the source code that the coin is built from and also redistribute it. Keeping the source code secret should be another red flag. This alone just screams that the developer has something in there he doesn’t want people to see, i.e. he wants to run off with your BTC.


OHHH THE SHINEY

If the coins features that are being promised to you seem like they’re just too good to be true. Guess what? 99.999999% sure they probably are. Again don’t fork over your BTC


It’s Worth Millions!!!!!

If you’re told right off the bat that “Hey this coin is going to be worth XXXX BTC!” Just NO. There is no way a dev can know what the market will deem the coin to be worth. In a sense IPOs are just that, you’re buying it for a certain value that they are telling you the coin is going to be worth.


A Copy of a Copy of a Copy

One drawback of the open source, well anyone can redistribute it, that means no work put in, just download and upload, throw a different name on it and Wham Bam Thank You Mam Gimme Your BTC. RUN


No Website

Another flag is lack of an official website for the coin. A domain name is about $10 or less and you can grab up some hosting for a couple of bucks per month. If the developers are not willing to put in less than $15 into the coin why should you put your money into it?


Follow Your Gut

I know most people say one of the big rules is to not follow your gut, and that is also true, don’t follow your gut if it’s saying it’s not a scam. But if you feel deep down inside and that little voice in your head is nagging at you saying it is a scam, be safe and move on. Numerous altcoins launch each day, it’s not like you won’t have another one to judge.


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