The red flag is a figurative phrase. It is typically used to indicate that there is an issue with a specific circumstance or to raise concerns. There may be warning signs in business that alert analysts and investors to a company's or stock's potential financial problems.
One of the major cautionary signs when investing in cryptocurrencies is the lack of a white paper. When there isn't a white paper, the project is still in its infancy. You run an extremely high chance of losing your investment. A roadmap is crucial, just like a white paper. Before making an investment in cryptocurrencies or project tokens, investors should be on the lookout for the following warning signs.