How to check
a cryptoproject
and not get scammed

Many of you may have heard the phrase "do your own research" or "DYOR." Below is the guide how to conduct effective research, including which metrics to focus on and which resources to use.
The following resources will be needed:

• CoinMarketCap- For tracking token prices, market cap, trading volume, audit information, token supply, and direct links to the project’s Twitter and GitHub.
  
• CryptoRank- For data on IDO/IEO pricing, pre-sale and fundraising amounts, and analysis of early investor metrics.
  
• Messari- For detailed token economics, including the supply schedule and unlocking timelines for locked tokens.
  
• Twitter(X)- For social metrics and influence tracking, using profiles of influencers, funds, and projects following the token.
  
• GitHub- For evaluating development activity, code updates, contributor count, and overall project health.
  
• CoinMarketCal- For monitoring news and events, including future updates, partnerships, listings, and collaborations.
  

Additional Metrics for In-Depth Analysis

• What to check: Understand the size and engagement level of the community, which can drive adoption and provide organic marketing.
  
• Key Platforms: Twitter, Telegram, Reddit, and Discord.
  
• Cosmos Example: Cosmos has over 557 K Twitter followers and a highly active Reddit and Discord community, frequently discussing updates and ecosystem growth.
  

Conclusion:
A large, active community indicates that Cosmos has strong grassroots support, which can drive network effects and aid in adoption.

• What to check: Gauge the project’s momentum by reviewing its events, partnerships, and media mentions.
  
• Source: Coinmarketcal, Cosmos Hub blog, conference announcements, partnership updates.
  
• Cosmos Example: Cosmos regularly hosts events and participates in blockchain conferences like ETHDenver and Cosmoverse. Collaborations with projects like Osmosis and Gravity Bridge underscore its commitment to interoperability.
  

Conclusion:
Frequent events and high-profile partnerships reinforce Cosmos' active development and commitment to cross-chain solutions.

Conclusion: 
Active developer engagement is a strong signal of the project’s sustainability and technical evolution, enhancing Cosmos’ long-term value.

Conclusion: 
Well-funded projects with high-profile backers often have more stability and can execute long-term development plans. Cosmos’ financial support reinforces its credibility.

• Objective: Evaluate how well a project integrates with other blockchains, a key feature for projects seeking to provide interoperability.
  
• Key Platforms: Cosmos Hub, Polkadot integrations.
  
• Cosmos Example: Cosmos is specifically designed as a cross-chain platform, using its Inter-Blockchain Communication (IBC) protocol to allow different blockchains to communicate and transact. Projects like Osmosis and Kava run on the Cosmos ecosystem, underscoring its multichain functionality.
  

Conclusion: 
Cosmos’ focus on interoperability is central to its value proposition, setting it apart as a blockchain “internet.” Projects prioritizing cross-chain interactions offer unique solutions and may capture broad market interest.

Using the steps outlined in this guide can enable thorough evaluations of other crypto projects, ensuring decisions are based on multiple layers of data, from quantitative metrics to qualitative factors such as community engagement and developer activity.

Spotting a scam project requires attention to several red flags:

• Anonymous Team: Lack of transparency about who is behind the project is a big warning sign. Legitimate projects are typically open about their team and advisors.
  
• No Audit: If the project has not undergone any third-party audit, the risk of smart contract vulnerabilities or fraudulent intent is much higher.
  
• Unrealistic Promises: Projects that guarantee massive returns with little effort are usually scams. Be cautious of phrases like “guaranteed profit” or “zero risk.”
  
• Tokenomics Issues: Scam projects often have skewed token distribution, with a large percentage of tokens reserved for the team or private investors.
  
• Pump and Dump Schemes: Projects that are heavily shilled on social media without substantial technical backing may be part of a pump and dump scheme. These involve artificially inflating the token price to attract investors, only for insiders to sell at the peak, leaving others with worthless tokens.
  
• Honeypot Scam: A honeypot scam is a fraudulent tactic where investors can buy a token but are unable to sell it. This often results in trapped funds for investors, as only the project creator or insiders can unlock liquidity or authorize selling.
  
• How to Identify: You can detect honeypot scams by carefully reviewing the smart contract code. Look for functions that might restrict transfers or withdrawals. Honeypots often include restrictions in functions like transfer(), sell(), or approve() that allow investments but prevent sales. Platforms likeHoneypot.is andToken Sniffer can help verify if a token has such restrictions, offering a useful layer of security for potential investors.

In conclusion, analyzing a crypto project thoroughly can help you mitigate risks and avoid scams. Understanding the team, roadmap, tokenomics, and community gives you a clearer picture of the project's viability and potential for long-term success.

Crypto trading involves buying and selling cryptocurrencies on exchanges to profit from price fluctuations. Traders can engage in day trading, swing trading, or long-term investing. Trading can also be performed in automated ways by using trading bots.

Day Trading
This method involves buying and selling assets within a single day, capitalizing on short-term price movements.

• Risk level: High. It’s considered the most risky form of trading due to the extreme volatility of crypto markets, requiring constant monitoring and quick decision-making. The use of leverage can magnify both gains and losses, making it possible to lose an entire investment in minutes. However, with skill and discipline, day traders can achieve significant returns.
  
• Potential earnings: With high volatility, day traders can potentially earn up to 5-20% daily on strong market moves, but significant losses are equally possible.
  
• Entry barrier: High, requiring advanced technical analysis skills, a significant time commitment, and strong risk management.
  

Swing Trading
Swing trading involves holding positions for several days or weeks, aiming to profit from medium-term price trends. While still risky, it’s considered less intense than day trading.

• Risk level: Moderate. The main risk of swing trading lies in market volatility over the medium term. 
  
• Potential earnings: Without leverage, swing traders can earn 5-20% per trade, depending on market conditions. When using leverage (borrowing funds to amplify position size), earnings can rise significantly. For example, with 2x leverage, potential returns could double to 10-40% per trade, and with 5x leverage, they might increase to 25-100%. However, higher leverage also increases the risk of liquidation, meaning traders can lose their entire position if the market moves against them.
  
• Entry barrier: Moderate, requiring experience in technical analysis, understanding of market cycles, and emotional resilience to manage medium-term price fluctuations.
  

Long-term Investing (HODLing)
This strategy involves buying assets and holding them for months or years, betting on long-term growth.

• Risk level: Low. It’s generally less risky compared to short-term trading, as long-term investors typically avoid market volatility by riding out short-term fluctuations. However, the main risk comes from choosing the wrong project or token that fails in the long term.
  
• Potential earnings: Over time, long-term investors can see gains of 50-500% or more during bullish market cycles, especially when investing in projects with strong fundamentals.
  
• Entry barrier: Low. Beginners can start with small amounts and basic knowledge of the market, and don’t need to monitor prices constantly.
  

Trading Bots
Trading bots are automated software programs designed to execute trades on behalf of the user based on predefined strategies and market conditions. These bots can analyze market trends, execute trades, and manage assets 24/7, making them a popular choice for traders looking to optimize their results without constant monitoring. Some of the most popular trading bots include 3Commas, CryptoHopper, and Bitsgap. Below is a breakdown of the key aspects of earning with trading bots:

• Risk Level: High. Although bots can help optimize trading strategies and reduce the emotional aspect of trading, they are not foolproof. Bots can execute trades rapidly but can also magnify losses if market conditions suddenly change. Additionally, poorly configured bots or reliance on unproven strategies can lead to significant losses. Always test your bot’s strategy on a demo account if possible before committing real funds.
  
• Potential Earnings: The earning potential with trading bots varies widely and depends largely on market conditions, bot configuration, and the strategy used. In favorable market conditions, well-configured bots can achieve monthly returns ranging from 5% to 20%. However, these returns are not guaranteed, and users may experience losses, especially during market downturns or increased volatility.
  
• Entry Barrier: Moderate. Most platforms, such as 3Commas, CryptoHopper, and Bitsgap, offer user-friendly interfaces and preset strategies that require little technical knowledge to get started. However, maximizing bot performance often involves an understanding of market analysis, strategy selection, and technical settings such as stop-loss orders and risk management parameters.
  

Here are some popular trading bot platforms:

• 3Commas (3commas.io): Offers smart trading features, portfolio management, and various bots, including grid bots, DCA (Dollar-Cost Averaging) bots, and options bots.
  
• CryptoHopper (cryptohopper.com): Provides cloud-based bots with a range of automated strategies, social trading, and a marketplace for buying and selling strategies created by other users.
  
• Bitsgap (bitsgap.com): Known for its grid trading bots, arbitrage options, and user-friendly interface that integrates with major exchanges.

Staking allows users to earn passive income by participating in Proof-of-Stake (PoS) networks, where you lock up your cryptocurrency to help validate transactions and secure the network. In return, you earn rewards in the form of additional tokens. Popular platforms for staking include Ethereum 2.0, Cardano (ADA), Polkadot (DOT), Solana (SOL), and Avalanche (AVAX).

• Risk level: Staking is generally considered a low to moderate-risk method of earning in the crypto space. While the process itself is secure, the primary risk comes from the price volatility of the staked tokens. If the token’s value drops significantly, your overall profits can be eroded despite earning rewards. Additionally, some staking platforms have lock-up periods during which your assets cannot be withdrawn, and slashing penalties may occur if the network detects malicious activity.
  
• Potential earnings: On average, staking rewards range from 4% to 10% annually, depending on the network and market conditions. For example:
  
  • Ethereum 2.0: 5-7% annual yield.
    
  • Cardano (ADA): 4-6%.
    
  • Polkadot (DOT): 10-14%, one of the more lucrative staking options.
    
• These returns can vary based on factors such as network activity, the number of validators, and token inflation.
  
• Entry barrier: Low to moderate. Staking is accessible to both beginners and more advanced users. Most networks make it easy to participate by simply holding tokens in a compatible wallet or using platforms like Binance, Kraken, or Coinbase to stake. Technical knowledge isn't as crucial compared to trading, but it's essential to research staking terms like lock-up periods and rewards structures before starting.
  

In summary, staking offers a steady, passive income stream, with typical returns between 4-14% annually. However, the main risk lies in the market volatility of the staked asset, so it’s crucial to balance potential rewards with the possibility of price fluctuations affecting the token’s value.

Here’s a list of trusted DeFi platforms:

• Aave (aave.com) – Lending and borrowing.
  
• Compound (compound.finance) – Lending and borrowing.
  
• Uniswap (uniswap.org) – Decentralized exchange and liquidity provision.
  
• PancakeSwap (pancakeswap.finance) – DEX and yield farming on Binance Smart Chain.
  
• Curve Finance (curve.fi) – Stablecoin DEX and staking.
  
• SushiSwap (sushi.com) – DEX, staking, and yield farming.
  
• Yearn Finance (yearn.finance) – Yield aggregator.
  

These platforms are generally among the most trusted and established in the DeFi space, but all investments should still be made with caution due to the inherent risks involved.

Airdrops are a popular way for new crypto projects to distribute tokens to users for free as part of marketing campaigns or community building. In many cases, users who meet certain criteria, such as holding a specific token, being an early adopter, or completing tasks, receive a distribution of tokens. Some notable airdrops have provided significant earnings to participants, but this method also comes with unique risks and challenges.

• Risk level: Moderate. The primary risk with airdrops is interact with malicious contracts that could compromise users’ wallets. Additionally, the value of the airdropped tokens can be highly volatile, and in some cases, they may become worthless if the project fails. Another risk is the time investment in researching and participating in potentially low-reward airdrops.
  
• Potential earnings: Airdrops can be highly lucrative, with some notable examples including the Uniswap airdrop in 2020, where early users received 400 UNI tokens, valued between $1,200 and $4,000 at the time, or the 1inch airdrop, where participants earned $1,500 to $3,000. However, smaller or less-known projects might only distribute a few dollars worth of tokens, or the tokens could lose value quickly.
  
• Entry barrier: While airdrops may seem like an easy way to earn, success depends on thorough research. Participating in high-value airdrops requires analyzing the project's whitepaper, understanding the team, checking tokenomics, and evaluating the project's potential. If you rely on a deep analysis, the entry barrier becomes much higher due to the time and expertise required. Additionally, multiaccounters, who create numerous accounts to receive more tokens, often dominate airdrops. Some have been able to game the system and earn significant amounts, but projects are increasingly implementing anti-cheat measures to curb these practices.
  

Popular platforms to track upcoming airdrops include:

• Airdrops.io
  
• CoinMarketCap Airdrops
  
• Earnifi
  

In conclusion, airdrops offer moderate risk with the potential for huge earnings, but only if you’re able to identify the most promising projects. The entry barrier can be quite low for basic participation, but increases substantially when thorough research is involved.

Trading
  •  Day Trading: High risk, 5–20% daily. Entry barrier: high (requires advanced analysis and time).
  •  Swing Trading: Moderate risk, 5–20% per trade (with leverage: 10–40% at 2x, 25–100% at 5x). Entry barrier: moderate (needs experience and emotional resilience).
  •  Long-term Investing (HODLing): Low risk, 50–500%+ over time. Entry barrier: low (basic knowledge and small investments).

Staking
  •  Risk: Low to moderate. Earnings: 4–14% annually. Entry barrier: low to moderate (requires research and basic knowledge).

DeFi Earnings
  •  Lending/Borrowing: Moderate risk, 2–10% annually (up to 12–15% for some assets). Low to moderate barrier (basic wallet knowledge).
  •  Yield Farming: High risk, 10–100%+ APY. Barrier: moderate (requires liquidity pool knowledge).
  •  DeFi Staking: Moderate risk, 5–30% APY. Barrier: low to moderate (requires tokenomics understanding).
  •  DeFi Aggregators: Moderate risk, 5–20% annually. Barrier: low (simple but needs research).

Airdrops
  •  Risk: Moderate. Earnings: Potentially high (e.g., $1,200–$4,000 from Uniswap). Barrier: variable (minimal effort for basic participation, higher with analysis).

Earning in crypto can be highly profitable, but it requires careful analysis and risk management. By understanding the mechanics of various earning methods and using the right tools, you can avoid scams and make informed investment decisions. Remember that in the volatile world of crypto, security and research are your best friends. Always be cautious, invest only what you can afford to lose, and diversify your investments rather than putting all your “eggs in one basket” to manage risk effectively.

However, if you do find yourself in an unfortunate situation and fall victim to a scam—something that is not uncommon in the crypto space—it's vital to act quickly. One effective solution is to reach out to specialists for help. We recommend contacting us via our https://t.me/ms_main_bot report bot for immediate assistance and support.