6 Right Ways to Easily Choose Legit or Scam Crypto Assets

With the influx of new tokens into the crypto sector every day, it is becoming increasingly difficult for traders to recognize good and bad projects. This is due to the large number of scammers and hackers trying to con investors out of their hard earned money.

However, by following these steps, you will be able to recognize good projects in the crypto market before you invest in them.

Here are some key factors to consider:

Listed on the Exchange

This is an important factor in choosing a crypto project to invest in. While sometimes the hype regarding listings on major exchanges will create a furor, these projects may end up not being listed successfully on those exchanges.

Most of them use the news to drive up the price of the token, thereby encouraging investors to buy as it becomes available on popular exchanges. Even though listing on a major exchange does not completely determine the movement of a coin, trust is higher if it is listed on a prestigious exchange.

Social Media Presence

For a project to be successful in the crypto sector, one of the main factors it needs is to have a large number of followers. Checking the presence of the project on social media will give an idea whether the project is on the right track or not.

In this case, you have to make sure that the project has a large community of followers among the top 5 social media platforms.

Some of the social media that can make a difference are Twitter, Reddit, Facebook, and Telegram, among other websites. Knowing this will also open you up to various other investors and their opinions on the project.

Another advantage is announcements from the development team through these channels. This will allow you to update yourself with the latest events regarding the project.

Development Team

Checking the development team behind the project is an important factor to consider when selecting a good crypto project. One of the questions that must be answered is how good the development team is and how reliable they are.

Another factor to consider in this aspect is the experience of the development team members and how long they have been working on crypto projects.

The purpose of these questions is to determine whether the team behind the project can successfully carry out the project. This will help investors not to lose funds if the project fails in the long run. This will also ensure that fraudsters do not create the project.

Legal Implications

Although very important, this factor is often overlooked when choosing a good crypto project to invest in. This is because trading in cryptocurrencies is not permitted everywhere in the world, which has legal implications for some investors and companies.

For example, if a company decides to launch a crypto-related product in Nigeria, it will not be successful. This is because Nigeria has banned the use and trading of digital assets since last year.

Therefore, traders should pay close attention to developments around the world regarding cryptocurrencies to ensure compliance with applicable laws and regulations.

Market Capitalization

Market capitalization remains an important determinant of how far a token will reach upon listing. The reason is the increase in market capitalization when the value of these tokens soars.

If the market capitalization of the token is already high, then there will be little room for further growth.

This will cause the token to stagnate. Apart from that, another thing to consider is the number of tokens in circulation.

Investors also need to know basic things like the majority holder of the tokens and who controls the majority of those tokens. This is because some traders hold tokens for short term gains and sell them after seeing a profit.

Active Community

In addition to a social media presence, the project needs to have an active community to be successful. In general, companies open communities for their followers on various platforms such as Telegram and Reddit.

On the other hand, many projects are now bringing their communities to Discord and Telegram, where they can have deep discussions.

Another important platform is GitHub, which allows traders and investors who are familiar with the code to see how well the project has potential.

The hype generated by the growth of the community will determine the price of the token in the end. This factor will also encourage others to join the community, and drive wider adoption.