Cryptocurrency: Generating Dreams or Ponzi Schemes?

2017 was a huge year for cryptocurrency. With the rapid influx of value and volume of personas interested comes an increase in personas having the desire to scam. As a new investor, my biggest concern is spotting the difference between a legitimate investment versus a fraudulent one. I was browsing a statement put out by the SEC (https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf), and found it very informative. However, input from other investors or anyone with knowledge in the cryptocurrency realm would be greatly appreciated. Input on spotting the scams, making smarter investments, and going more into depth on the tips the SEC provided would be immensely appreciated by more than just myself.