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Simon Mugo

How can I avoid crypto scams while investing in altcoins?

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Well, investing in cryptos can be extremely rewarding given the above-market returns, but it's quite difficult to identify the legitimate projects from the mushrooming scams. According to a recent report released by Chainalysis, a blockchain forensics company, crypto scammers conned unsuspecting investors off $4.3 billion in 2019.

However, the total figures attracted by scammers were much higher at $.6 billion, which is why crypto investors have to be extremely careful when investing in new projects. One of the easiest ways to identify a legitimate crypto project is to determine whether the project is backed by an actual product that has market value.

Most scammers market their fraudulent projects as the next big thing, but in most cases, such claims are not supported by actual evidence. Therefore, investors must perform their own due diligence before investing into any crypto projects to see if such projects as backed by experienced teams and whether they have a real product or service.

Investors who cannot do their own due diligence should stick to investing in existing altcoins such as Ripple (XRP) and Ethereum (ETH) and a few others that are well-known to minimize the chances of losing their investment.

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