How to distinguish a good crypto currency from an ordinary financial pyramid?

What factors point to the unreliability of the new crypto currency:

  1. Answer the question, who is the beneficiary of this currency? Who will receive the lion’s share of the profits when it successfully enters the market?
  • hint that the “correct” crypto currency does not have one single player (or a group of players) who own most of the currency (or they behave very secretively and do not show themselves in the market)


  1. If the creators of a new crypto currency initially reserve the right to own large coin reserves – this can easily lead to the creation of a financial “pyramid”. Since they will be the biggest beneficiaries of the unfair growth of the coin


  1. If creators actively use the Multi-level marketing (MLM) formula – when users are actively rewarded for attracting other users
  • It is difficult to trust information about the currency if we know on 100% that users who are distributing positive information will be rewarded.
  • Currency creators do not necessarily encourage existing users to attract new users using direct cash payments, it can be some bonuses, preferences in the system, etc., but in any case this is a suspicious scheme most often meaning the usual financial pyramid


  1. One of the brightest signs of a not reliable currency is the lack of a free market.
  • there is no truly free, not encoded platform / service in which sellers and buyers of this currency can easily and clearly make transactions for sale / purchase
  • if a coin is not traded on large exchanges it is impossible to make up its real / fair price
  • There is no effect that millions of potential investors can create (when a lot of people evaluate a coin and create a supply and demand, then a real market price is formed)
  • If professional traders can not freely use this coin to play on the market – it all means that the currency is not perspective and not reliable


It is impossible to say unequivocally that if you find one of the above factors from a new crypto currency, then this is a 100% pyramid and you should not even consider investing in this coin.

No, it’s possible and necessary to take risks, but if you notice several “markers” of the pyramid, this is an opportunity to reflect and either not invest in this currency or exit this “game” as soon as possible.

Shortly, what are the main signs of an unreliable crypto currency:

– a certain large reserve of currency was mined in advance

– the owners of most the reserves of this currency are founders

– the main principle of currency distribution is MLM

– the coin is not traded on open exchanges


The biggest problem of the “pyramids” including in the crypto currency market is the hung promises and expectations!


If the creators of the new coin promise unreal profits, do not talk about possible risks and generally do not explain the reliability scheme of the coin, most likely before you Ponzi scheme or some other financial pyramid.


If you are currently considering investing in a new, still very little known crypto currency and you have not seen any of the above factors, most likely you have a good currency and is worth a try.

Do not forget, no one can give you any guarantees and you can learn about the real situation only after some time. But if you observe the minimum precaution and will evaluate the new currency based on those markers that we gave you, you are likely to save yourself from financial losses