In the wake of the recent ‘SQUID’ token scam, which was developed after the Netflix series Squid Games and has since cost numerous investors their investments, Cheddar News speaks with Wendy O to discuss how investors can best protect themselves against getting caught up in crypto scams.
Wendy acknowledges that while it can be difficult to discern the bad actors from the majority of the space, there are some things that investors can do to mitigate some of the risks while still getting to ‘participate in the all the fun’.
These include diversifying your portfolio to include the heavyweights like Bitcoin and Ethereum, some of the blue-chip coins–which broadly refer to many coins in the top 50 or 100–and then maybe adding some of the lower-cap projects thereafter.
When looking at these smaller projects though, Wendy advises fully assessing the project, its team, and generally how transparent it is to its respective community.
The same can be said about crypto exchanges, and starting out with the safest, generally more strict exchanges can offer some early assurances for inexperienced crypto investors.
Like all things, it takes using and interacting with something to actually understand it fully.