Common Crypto scams and how to avoid them.
The pros and cons of cryptocurrency are its liquidity, transparency and accessibility. In reality cryptocurrency is an incredibly valuable asset for criminals. The scams are increasing everyday because in crypto world transactions are portable , liquid, mostly anonymous and irreversible. We are all here to enjoy the benefits of cryptocurrency and profit but it is for our best to know how to avoid these scams.
Investment scam
These scams often offer high and unrealistic yields by asking people to send their cryptocurrency to a company or a firm. Their websites look legitimate with complete information about the company and what services/products they offer . Those offers include cloud mining , doubling your crypto in a week and escrow .Too good to be true or guaranteed returns should always be a red flag. These companies call themselves as portfolio management companies. Most of you might have got random messages on Instagram and Telegram from strangers trying to convince you to invest in some companies you have never heard of . Those messages are reg flags and the best possible way is to not reply and delete those messages and block them . Please be aware of pyramid schemes like One coin, Bitconnect , Plus token etc. Most people believed Bitconnect as a legit project and lost money. Companies which doesn't provide enough information on CEO, team members are mostly scam. You will be better off holding crypto in your wallet . You can get some passive income by staking , mining and crypto interest with legit companies like Binance, Block Fi, Nexo etc.
Technical scams
Many scammers can create a fake company or fake call center for a online help. I came across a group on Telegram where the admin was giving crypto trade solutions and if anyone had trouble he asked them to transfer funds to him so he can trade on their behalf or give them twice the returns.
Scammers create fake apps and direct users to download their app which resembles exactly the popular and legit companies. Please download apps only from the official websites or the link from your trusted source.
Scammers can reach out to you claiming they are the official team of the exchange where you trade and may ask for your info and access to your machine . None of the legit companies ask for your personal info like passwords or two factor authentication.
Social media scams
Here comes the mother of all scams. Social media has become an essential part of our lives for every reason.However scammers use these platforms very actively to target users. Giveaways should be the top red flags. Example send us 1 BTC and you will get 5 BTC in 7 days, free money back, stranger messaging you and asking to invest in his cloud mining farm etc are very tempting but those are nothing but lies. It is better to avoid giveaways that require you to send your money upfront . Before getting tempted to those giveaways please do some research about those companies , review their profiles on Facebook and twitter , for more info ask about those companies on platforms like Reddit , Quora or any social groups where someone might have an answer for you .
Right now we are in a kind of a bull run and during bull run many scam companies will come up with variety of offers and some scammers create their own cryptocurrency with no fundamentals. Many people think the Top 10 cryptocurrencies on coin market cap are always legit but if you check in 2017 bull run Bitconnect was in Top 10 companies that turned out to be one of the biggest scam . Scammer always come up with something more attractive every time . We never know Bitconnect like scams are already there actively targeting users.
Please stick on to projects with proven fundamentals and always keep your crypto in your own wallet .
If your crypto is not in your wallet its not yours anymore.
Cheers
