BigONE Strategy: Things To Be Aware of Before Buying a New Cryptocurrency
According to BigONE statistics, there are currently over 11,000 cryptocurrencies in the market, with new ones being created daily. However, the enthusiasm with which investors have embraced cryptocurrency has provided fertile ground for scammers.
One way to avoid being duped is for investors to conduct thorough research before purchasing cryptocurrencies, which will proactively protect their assets. Its BigONE’s mission,, and responsibility is to ensure the safety of user assets. We recommend that investors pay attention to the following information before purchasing cryptocurrency, especially if it’s a new cryptocurrency.
The information provided by the creator should tell you a lot about cryptocurrency. You can find out if they are connected to any scams by researching other projects in which they have participated and checking to see what expertise they bring to the project.
Bitcoin is an exception. It was created by an anonymous person named Satoshi Nakamoto, supported by a passionate developer community. However, many new cryptocurrencies will find it difficult to replicate this decentralized setup.
Lack of a Team
Another key consideration is the number of people involved in the project and the size of the community it attracts. Due to startup funding constraints, the new cryptocurrency may not have a large team, but it should have some full-time staff rather than just part-time employees.
In addition to focusing on the new cryptocurrency’s team structure, BigONE recommends that investors use tools like CryptoMiso and CoinCheckup to track developer activities on GitHub (a crypto development and coding platform). Although they cannot detect all scams, they can help identify cryptocurrencies whose codebase has not been updated recently.
Writing Style of Official Website and Materials
Typos and poor grammar are also red flags whether it is a cryptocurrency or for other investment opportunities. According to BigONE’s security experts, some errors are intentional.
There are several reasons for these errors:
● Spelling errors increase your chances of passing the spam filter
● Spelling mistakes can make the text look more credible, that it’s not copied from elsewhere
● Ignoring the errors means investors aren’t careful, making it easier for them to fall into a scam. If there are errors in the cryptocurrency promotional materials, they have not paid attention to detail.
Anyone should be able to use grammar and sentence checking software for free, so this kind of error should not appear on the official website of cryptocurrency and related materials.
A cryptocurrency whitepaper needs to list what the project plans to do, how it’s going to do it, and the process involved. Although the whitepaper doesn’t have to be necessarily 100% accurate, if there is no whitepaper or litepaper, it probably means that it has no real plans for its development.
Patience may be required when reading the whitepaper. However, it can assist investors in understanding the project’s details and future. Unlike information provided by publicly traded companies that are subject to strict oversight, investors should pay attention to the credibility of the content contained in the whitepaper. In 2018, a Wall Street Journal survey discovered that 271 of 1,450 cryptocurrency whitepapers had misleading or incorrect information.
Celebrity Endorsements and Excessive Publicity
Celebrity endorsements are becoming more common in the cryptocurrency field. Since Elon Musk’s tweet pushed Dogecoin (DOGE) to new highs, each new cryptocurrency hopes to endorse its own celebrityendorse its own celebrity.
Although marketing and promotion areare important, you should be skeptical if a cryptocurrency spends more on promotion than developing a product. Investors should be wary if it has the means to spend tens of thousands of dollars on celebrity endorsements but lacks full-time developers.
Cryptocurrencies that rely solely on celebrity endorsements are not worth buying. Please do your research and pay attention to the origins of the new cryptocurrency, who its competitors are, and how it keeps its network safe. Try to double-check by using the information you find in other online channels, including communities such as Telegram, Reddit, or Discord. Although this process will take some time, it may determine whether your investment is profitable or not.
Not Listed on Mainstream Cryptocurrency Exchanges
BigONE and other cryptocurrency exchanges have a strict selection mechanism in place for listed cryptocurrencies. Although many exchanges hope to list as many cryptocurrencies as possible, investors should check whether the cryptocurrency they are about to purchase is listed on a mainstream exchange such as BigONE. If you find it difficult to buy a cryptocurrency on mainstream exchanges or can’t find it on cryptocurrency exchanges you use, this is a warning sign.
Using Sniffer Tools
BigONE advises investors to use several websites to help them identify cryptocurrency scams. Token Sniffer, for example, has launched a cryptocurrency list that identifies over 2,500 cryptocurrencies that may be scams, and this list is growing by the day.
Coinopsy is another useful website for researching cryptocurrencies. It published a list of failed cryptocurrencies, those that are confirmed as scams or were abandoned. BigONE would like to remind everyone that fraudulent cryptocurrencies often use names and codes similar to to mainstream cryptocurrencies, so please check carefully when reading the list.
All cryptocurrency investments carry risks and volatility, which means your investment will likely experience gains and losses. This does not imply that taking unnecessary risks is a good idea for investors. When you hear about people making thousands or even millions of dollars by purchasing Bitcoin or Dogecoin before the price skyrocketed, you might want to buy a small number of new coins and hope for similar results. However, for every person who has made millions of dollars, some have lost millions too. Rather than betting on a new token that may raise many red flags, why not look for a secure and credible
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.