These are the key steps to differentiate legitimate currency from fraudulent currency:
1. **Check the development team**
* A good currency has a known team with real identities and documented experience on sites like LinkedIn.
* If the team is anonymous or entirely using pseudonyms, be cautious.
2. **Read the whitepaper**
* The document that explains the project idea and its plan. If it's too generic or copied from other projects, the project is likely weak or fake.
3. **Check the platforms it is listed on**
* Good currencies are often listed on well-known platforms like Binance or Coinbase.
* If the currency is only available on small or unknown platforms, the risk is higher.
4. **Monitor trading volume and liquidity**
* A currency with low trading volume (e.g., less than $100,000 daily) can be easily manipulated in price.
5. **Avoid guaranteed profit promises**
* Any project that promises to "double your money quickly" is likely aiming to scam.
6. **Look for an active community**
* Having an active communication channel (Twitter, Telegram, Discord) and real followers is a positive indicator, but beware of fake followers.
📌 Golden rule: If you feel that the currency is an "once-in-a-lifetime opportunity" in an exaggerated way, consider it a warning to check more before buying.