Beginner Lesson 10: How to tell whether a project is trustworthy—check these things before you spend any money
There are new projects and narratives in crypto every day. The most common mistake beginners make isn’t missing out on “the next 100x”—it’s handing over their money before they even understand what they’re buying. Here’s a practical checklist to go through before you buy.
1. First, ask: What problem does it solve?
A relatively trustworthy project can usually explain in a sentence or two what it does, who it’s for, and how it differs from existing options like $BTC and $ETH .
If the team can’t explain it clearly, just throws around words like “revolution,” “ecosystem,” and “next generation,” or relies entirely on trendy buzzwords, treat that as a yellow flag.
Note: A compelling narrative doesn’t mean a project will make you money. It just helps you filter out the least convincing ones.
2. Check the team and how much information they disclose
1) Is the team public, and can you verify their past experience?
2) Is there a website, documentation, or code repository you can check for yourself?
3) Were the social media accounts created recently, and are their followers all bots?
A completely anonymous team, cobbled-together information, or a website that immediately errors out doesn’t necessarily mean it’s a scam—but the risk is already high enough for beginners that it’s best to skip it.
3. Check the token: who holds it, and when does it unlock?
The key question isn’t “What’s the total supply?” but:
1) How much do the team and early investors hold?
2) Are there large unlocks or windows when they could dump?
3) Is most of the liquidity concentrated in the hands of a few whales?
If a small number of people hold most of the tokens, the “gains” you see may just be them pumping the price. It’s easy to buy with $USDT, but you may not be able to sell when you want to.
4. Look for real usage—not just promotional images
1) Can you access the product and actually use it?
2) Is the data only shown in screenshots, with no verifiable on-chain data or public dashboard?
3) Are partnerships real, or have they just slapped on a logo that doesn’t even link to the supposed partner?
A product, users, and verifiable data are far more convincing than “some big influencer shilling it.” On the other hand, if all they do is post promotional graphics and hype up potential airdrops, treat it as high-risk and don’t gamble your living expenses on it.
5. A few clear red flags
1) Guaranteed returns, “risk-free” profits, or promises to double your money just by copy trading;
2) Pressuring you to deposit immediately, saying you’ll miss out if you don’t buy today;
3) Requiring you to use private-message links, unfamiliar DApps, or unknown wallets;
4) Asking you to send $USDT / $BTC first to “unlock withdrawals” or “claim an airdrop”;
5) Attacking exchanges, regulators, or established projects without ever explaining how they make money themselves.
If several of these signs show up together, you can pretty much close the page.
6. Practical tips for beginners
1) Keep most of your funds in assets you genuinely understand, such as $BTC and $ETH , and use only a small amount to try new things;
2) It’s okay if you don’t understand the white paper, but at least understand how to buy, how to sell, and whether you can afford to lose everything you put in;
3) Other people’s screenshots of their gains don’t count—only the profit or loss in your own account does;
4) If you’re unsure, sit it out for now. There are opportunities in crypto every day. Missing one isn’t a disaster; getting burned is.
In short: First figure out what it is, who’s selling it, and whether you can exit without trouble. Then decide whether to buy. If you don’t understand it, stay away for now.
That’s it for these ten beginner lessons. I’ll continue with more practical topics, such as how to read the order book and trading volume, how to set conditional orders, what funding rates are, and common entry and exit habits for short-term trading. What do you check before buying a new coin? Let’s chat in the comments.
The content above is for educational purposes only and does not constitute investment advice. Crypto assets are extremely risky and may become worthless. Only participate with money you can afford to lose, and verify all information for yourself.
#新手入门 #项目研究 #防骗
There are new projects and narratives in crypto every day. The most common mistake beginners make isn’t missing out on “the next 100x”—it’s handing over their money before they even understand what they’re buying. Here’s a practical checklist to go through before you buy.
1. First, ask: What problem does it solve?
A relatively trustworthy project can usually explain in a sentence or two what it does, who it’s for, and how it differs from existing options like $BTC and $ETH .
If the team can’t explain it clearly, just throws around words like “revolution,” “ecosystem,” and “next generation,” or relies entirely on trendy buzzwords, treat that as a yellow flag.
Note: A compelling narrative doesn’t mean a project will make you money. It just helps you filter out the least convincing ones.
2. Check the team and how much information they disclose
1) Is the team public, and can you verify their past experience?
2) Is there a website, documentation, or code repository you can check for yourself?
3) Were the social media accounts created recently, and are their followers all bots?
A completely anonymous team, cobbled-together information, or a website that immediately errors out doesn’t necessarily mean it’s a scam—but the risk is already high enough for beginners that it’s best to skip it.
3. Check the token: who holds it, and when does it unlock?
The key question isn’t “What’s the total supply?” but:
1) How much do the team and early investors hold?
2) Are there large unlocks or windows when they could dump?
3) Is most of the liquidity concentrated in the hands of a few whales?
If a small number of people hold most of the tokens, the “gains” you see may just be them pumping the price. It’s easy to buy with $USDT, but you may not be able to sell when you want to.
4. Look for real usage—not just promotional images
1) Can you access the product and actually use it?
2) Is the data only shown in screenshots, with no verifiable on-chain data or public dashboard?
3) Are partnerships real, or have they just slapped on a logo that doesn’t even link to the supposed partner?
A product, users, and verifiable data are far more convincing than “some big influencer shilling it.” On the other hand, if all they do is post promotional graphics and hype up potential airdrops, treat it as high-risk and don’t gamble your living expenses on it.
5. A few clear red flags
1) Guaranteed returns, “risk-free” profits, or promises to double your money just by copy trading;
2) Pressuring you to deposit immediately, saying you’ll miss out if you don’t buy today;
3) Requiring you to use private-message links, unfamiliar DApps, or unknown wallets;
4) Asking you to send $USDT / $BTC first to “unlock withdrawals” or “claim an airdrop”;
5) Attacking exchanges, regulators, or established projects without ever explaining how they make money themselves.
If several of these signs show up together, you can pretty much close the page.
6. Practical tips for beginners
1) Keep most of your funds in assets you genuinely understand, such as $BTC and $ETH , and use only a small amount to try new things;
2) It’s okay if you don’t understand the white paper, but at least understand how to buy, how to sell, and whether you can afford to lose everything you put in;
3) Other people’s screenshots of their gains don’t count—only the profit or loss in your own account does;
4) If you’re unsure, sit it out for now. There are opportunities in crypto every day. Missing one isn’t a disaster; getting burned is.
In short: First figure out what it is, who’s selling it, and whether you can exit without trouble. Then decide whether to buy. If you don’t understand it, stay away for now.
That’s it for these ten beginner lessons. I’ll continue with more practical topics, such as how to read the order book and trading volume, how to set conditional orders, what funding rates are, and common entry and exit habits for short-term trading. What do you check before buying a new coin? Let’s chat in the comments.
The content above is for educational purposes only and does not constitute investment advice. Crypto assets are extremely risky and may become worthless. Only participate with money you can afford to lose, and verify all information for yourself.
#新手入门 #项目研究 #防骗