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5 Simple ways how you can prevent being scammed in Crypto!

**5 Simple ways how you can prevent being scammed in Crypto!**

We probably all have been there: investing your money and finding out you have been scammed. Either you instantly lost your investment right after the launch or after a little bit of time. The website looked good, the team was active, advertising on multiple platforms, but still your money is gone.

Just ask yourself how many scams you have seen in your last 15 investments. How much did you money lose? What about other members in your Telegram group? 10.000 or even more people are scammed on daily basis.

What if you could prevent a scam and make sure your investments are safe and bring that desired return on investment?

This is the first of a series of educational articles to help you as an investor to prevent scams or rug pulls.

Please follow [Hoodrat.Finance](https://hoodrat.finance/) to secure your investment and of course leave an upvote and/or a comment. This motivates us to provide more information and details to secure your investments.

These are 5 red flags helping you from being scammed

**1. THE INFLATED DEV WALLET.** Be very careful with investing when a dev wallet has over 2% of the supply. This allows the team to dump and take the whole liquidity.

**2. BURNS**. A lot of investors are keen on token burns with the idea that it helps increasing the value and their investment as a result. If 50-75% of the token supply has been burnt and there is a wallet holding 2% (you can easily check this on Binance Smart Chain – BSC), it means that they actually own 4-6% of the remaining supply. This should always warn you.

**3. AMAZING MARKETING**. All token owners promise amazing marketing and share with you some huge number of followers. Make sure to verify if there is real activity on those upvotes, followers or Telegram members. One of the easiest methods of making something bigger then it is, is to simply buy upvotes and members (bots) at a very low cost. It may provide you with a comfortable feeling about the numbers, but if you do not check for legit conversations the chances are high that it is an army of bots.

**4. THE SO CALLED HONEY-POT.** A honeypot in where the developers have programmed a contract on purpose to not allow investors to remove their investment/profit. You can check if something is a honeypot by looking if there are any sales in the chart (red candles). Additionally you can buy a few dollars initially as a tester and see if you can sell it prior to investing a higher amount.

**5. RENOUNCED OWNERSHIP**. Ownership renounced means the development team doesn’t hold large amounts of tokens. Effectively it means that when ownership is not renounced the team could wait until the public buys a lot then sell their large amount of tokens. This way they take the entire liquidity pool and crashing the price to 0. As a result investors lose all of their money. Renounced ownership can be verified relatively simple. You can do this by checking BSC Scan, click on contract > contract owner. If it states a wallet that starts with 0x0000 it’s a burn wallet.

In the next Reddit post more information will be shared about a $15 million heist and several other red flags when investing in crypto, so stay tuned. Make sure to follow [HoodRat.Finance](https://hoodrat.finance/) and secure your investments

**About HoodRat**: Hoodrat is utility token. The team is building an anti-rug screening tool based on Machine Learning, which the entire crypto community can use to quickly audit risks of any BSC smart contract and pay for that service with Hoodrat tokens. HoodRat Finance helps you to safely and securely invest your money and limits the risks of scams and rug puls.

Please follow [Hoodrat.Finance](https://hoodrat.finance/) to secure your investment and of course leave an upvote and/or a comment. This motivates us to provide more information and details to secure your investments.

Telegram: [https://t.me/HoodratOfficial](https://t.me/HoodratOfficial)

Website: [https://hoodrat.finance/](https://hoodrat.finance/)

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