How Do I Invest In Crypto Tokens Safely?

After our previous blog, you may be left wondering how you can invest in crypto tokens safely. While there are no risk-free ways to invest, you can certainly take steps to keep yourself safe when investing in cryptocurrency tokens. First, you should have at least a very foundational level knowledge on investing and how it works. That’ll help you spot scams that are out to get the vulnerable, promising the sky and the moon in return for a small sum of money. After that, you can;

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Read The Whitepaper

Most crypto projects contain a whitepaper on their website. A whitepaper is a document where potential and current investors can read up on what their project entails, why it may require the blockchain technology, the roadmap, and potential issues that the project may run into. This whitepaper can give you an insight into whether the project is feasible and likely to grow. 

However, at the same time, do be wary of projects that promise too much! As the saying goes, if it sounds too good to be true, it’s probably too good to be true. There may be projects that promise to bring the moon to the earth with their token, which should serve as a red flag to potential investors as they may be left wondering how such an ambitious project will ever be completed. Likewise, you can use the whitepaper to see how in-depth the development team has planned the project to judge how likely they are to succeed. Sometimes an ambitious project with a very good plan can be executed, especially with the right team at hand!

Similarly, you should look out for how well written or ambiguous a whitepaper is, as it would give you an idea as to how legit the project is. Using the last article’s Squid Game Token ($SGT) as an example, their white paper was very superficial and barely contained any useful information. Their road map was very general and pretty lacklustre, especially with a project that promised so much. Furthermore, their whitepaper contained numerous grammatical errors and seemed more intent on selling the idea of free crypto in the form of Ethereum, rather than to sell the project and their vision for the Squid Game game, which was what $SGT would’ve been used on.

Read Up On The Developers

A big key to safe investing in cryptocurrencies is to have a doxxed team. The whole concept of the blockchain revolves around anonymity, although the extent of which could vary on each blockchain. As a result, many scammers have seized this characteristic of cryptocurrencies and stay anonymous behind their “projects”. A developer could, at any moment, perform a rug pull on their project by dumping their token to cash out the native cryptocurrency of the blockchain they’re using. 

A team with full faith in their project would doxx themselves on their site, so as to hold themselves accountable to the project. A doxxed team is much less likely to rug pull a project as they now have a face and name to defend, and even if the project fails through their own shortcomings, they can accept full responsibility. TripCandy takes pride in its team, and have doxxed the development team at the bottom of our website here

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Don’t Put Too Much Into Meme Coins/Tokens

We’ve heard of the recent rise of meme coins, such as Dogecoin, Shiba coin, and their hundreds of variants. These coins and tokens can be good investment opportunities as they’re often based on a pump-and-dump model, where people (surprise!) pump in the native cryptocurrency, wait for the value of the meme token to rise, and dump the token and cash out the native cryptocurrency. In the case of meme coins, they leverage on coin pairings, such as DOGE/BNB or SHIB/BTC, and cash out the more valuable coin.

However, meme tokens have an especially bad reputation when it comes to their investment opportunities. One reason is due to their lack of real world use; as its name suggests, it’s for a meme and isn’t meant to be utilised in any applicable way. Another common reason for their bad rep is because meme tokens are historically more likely to be rugged, due to their relative ease and their history of not having a doxxed team, allowing them full anonymity to steal the valuable coins out of their own liquidity pool.

If you’re lucky, an investment in a meme token can leave you with big earnings. However, more likely than not, your meme token can leave you with less than you started with, or worse, nothing.

Research On Utility Tokens And Whether Their Promises Are Feasible

Cryptocurrency projects that promise real world application are starting to take over the crypto scene, alongside meme tokens. However,  mentioned in the opening paragraph, crypto investment scams tend to over-promise investors on what they’re able to do. Experienced investors could sense a red flag immediately, as they realise the extreme challenges that the team could face in development. Even if it wasn’t a scam, you should still take their vision with a pinch of salt, and decide for yourself whether you should invest

To avoid losing your investment in overly-ambitious projects, do your own research on the team and what they have done in the past. TripCandy is led by Jeremy Foo, a former derivative trader and successful startup entrepreneur, with numerous achievements in his portfolio. With such a competent team, you can invest safely in TripCandy, and watch as our utility token takes over the crypto travel industry in the near future. Learn more about TripCandy here and start investing in us today!

Learn From Past Rug Pulls

In life, many things are learnt from the past. Every lesson is written in blood. So, what better way is there to learn to invest in crypto tokens safely than to look at past rugpull events and learn from them. This site by Cylynx documents some recent and relatively high profile rug pull events, and how it happened. By looking at developer habits and past high profile rug pulls, we can learn the tendencies of scammers and what they tend to do when trying to attract people to invest. With that information, we can then spot potential scams in the future when we come across that, and of course, not give them a single cent of your hard earned cash!

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We hope that these articles have helped you to be just a little safer when investing. For more blog posts, check us out here!

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