How Can You Tell Which Crypto Coins are Legit?
In recent years, the cryptocurrency industry has seen an explosion in popularity. Due in part to the pandemic, when people took the time they had stuck at home to evaluate their finances and explore investment opportunities, the sector has seen unprecedented growth which looks set to continue.
Despite this, cryptocurrencies remain volatile, with even the big hitters like Bitcoin seeing wild spikes in value over short periods of time. With new crypto coins appearing at a near daily rate, and an at times overwhelming volume of information and new technology out there, it’s important to know what you’re doing when looking to invest in a digital currency. We’ve put together a guide so that, whether you’re purchasing Bitcoin or about to buy Tether, you know you’re making a secure and sensible decision.
Watch out for Pump and Dumps
Pump and dumps are one of the most common scams seen in the cryptocurrency sector, they were used to fleece over $2.8bn from unsuspecting investors in 2021. The way these scams work is fairly simple, but they can be devastatingly effective. Fraudsters take an unknown, low value coin and launch a concentrated, aggressive marketing and PR campaign to generate hype and excitement around the currency. Once enough investors have been secured and the coin’s price has inflated significantly, the scammers rapidly sell their holdings and make off with the profits before the coin’s price…
