It is no secret that cryptocurrencies are still a fragile target for theft, fraud, hacking and phishing attempts. Examples of a number of prominent recent robberies here are bitconnect with an exit scam where about $250 million dollars are missed, the BitGrail attack; an Italian stock exchange that reported a loss of about $195 million in virtual tokens, not to mention Coincheck where hackers raised nearly $500 million.
The most important thing to recognize here is that scams just happen and they happen at a rate of 9 million dollars a day.
The good news.
The good news - and yes, there is good news - because there are many things you can do to avoid this and stay safe. There are many promising projects coming to the market, so stay positive. The hard truth is that ICO scams are possible because there is a lack of knowledge and / or not carrying out necessary protective measures.
It is still a relatively new subject the blockchain. Many people are not yet familiar with this and still need to educate themselves in the new technology and the technologies that are being built on this.
So, the most important thing is to do your homework before you put your money into something. And this does not only apply to cryptocurrencies! Always read the documentation provided for the project, and form your own opinion, does the concept sound good? Is it legal? What has already been done? Who are the people who work on the project? Are they trustworthy and do they have some experience? These are examples of some questions that you need to get answers to.
Also, make sure that all your wallet passwords and private keys are stored offline. Print them out and connect them somewhere in your house. Choose your cryptocurrency fair safely after reading a number of reviews from trusted sources. Be reasonable when dealing with cryptocurrencies and ICOs, and remember - if it looks like a scam, that is most likely the case!
Let us know how your research looks like, what steps you take to insure it's not a scam.