Bobos & Wojaks

Get rich or die tryin

5 Simple Steps To Analyze Crypto Security

cryptocurrency-crypto

Step 1

Check whether the project has passed a security audit. A respective label on the website is not a guarantee. Verify this information by visiting the auditor’s website/media or trying to look for audit reports on trusted resources (CoinGecko & CoinMarketCap).

Step 2

Check whether the team is public. Anonymous/Unknown members are a warning sign.

Step 3

Look at the project’s marketing activities. Huge and regular promises and a much higher than average yield without a real product may indicate a scam.

Step 4

Analyze the price movement. A permanent and rapid pump may indicate that there are selling limitations. You can enter but you cannot exit. It may be a scam.

Step 5

Check whether there are liquidity lock-ups. Otherwise, team members can anytime decide to exit with all liquidity. No lock-ups may indicate a scam.