As cryptocurrency continues to create overnight wealth, one common setback investors are grappling with is the ability to identify scams. When they pop up, the next issue is taking steps to avoid them. Do you want to invest in cryptocurrency, but don’t know how to separate genuine ventures from fake ones? If yes, stay put as we take you through cryptocurrency scams, precautionary measures, and everything in-between.
Latest Cryptocurrency Scams
Here’s a rundown of the cryptocurrency scams
- Malware scam: The most common example of malware scam out there is Cryptocurrency Clipboard Hijackers. It monitors the user’s computer so as to copy his wallet address and recipient’s address when coins are transfer.
- Fake Bitcoin exchanges: This is another scam to look out for. Fake Bitcoin exchanges pop up every now and then, promising free or low-fee virtual currency exchange. But in reality, these are sites set up by hackers for the purpose of defrauding naïve traders and investors.
- Ponzi schemes: Ponzi schemes are usually Initial Coin Offerings (ICOs) that promise crypto investors too-good-to-be-true returns (HYIP). When investors join
the scheme, sooner rather than later, they realize they have been swindled. For example, BitConnect Coin. - Fake Bitcoin Scams: Whenever you see an ICO promo claiming to be “the next to bitcoin,” you will need to exercise due diligence before investing. The name of these frauds are Fake Bitcoin scams. For instance, My Big Coin.
- ICO Scams: In the crypto-sphere full of countless ICOs, it’s pretty difficult to separate the wheat from the chaff. ICO scams usually offer unbelievable benefits but will definitely collapse in the long run due to flawed business model. Centra Tech was a typical example.
- Bitcoin Gold Wallet Scam: This scam successfully convinced investors to send their private keys to a certain wallet address and be gifted bitcoin gold. In the end, the scammers made over $3.2 million. The founders used MyBTGWallet.com to wreck investors’ wallets.
- Pump and dump scams: Here, a group of scammers acquire plenty of tokens. Afterward, they will hit the media to create hype about appreciation of that coin just to sell it at a high price and make unbelievable gains. After flooding the market with the coin, they will walk away with purchasers’ money, causing a huge drop in price.
Way Out
If you must make it in the cryptocurrency spectrum, then you must learn how to make informed decisions by detecting and avoiding scams. Do well to adhere to these simple tips:
- Stick to cryptocurrency official communication channels
- Don’t download shoddy crypto-software
- Double-check your URL before opening it
- Avoid ICOs with High Yield Investment Programs (HIYP).
More often than not, making good money from cryptocurrency is tantamount to taking lots of calculated risks. So, given that cryptocurrency is still in its early stages, there are a lot of scams flying around the crypto sphere. Take the steps above to stay safe. Good luck!!
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