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    How to Spot a Cryptocurrency Scam?

    How To Know Which Cryptocurrency Is Scams, Cryptocurrency Scams, Crypto scam, Scams, Crypto, Cryptocurrency, Cryptocurrencies, crypto traders, cryptocurrency scam, trading scams, scams,

    The crypto world is full of scammers, each of which tries to devise various scamming techniques to target newbies.

    To keep yourself safe from cryptocurrency scams, you must gather adequate knowledge about all scam-related crypto worlds.

    Remember that investing in the crypto world without proper knowledge can lead you to lose your hard-earned money.

    In this post, I will discuss all the common crypto scams so that you don’t have to be a victim of that cryptocurrency scam.

    Without further ado, let’s jump right into the details….

    Common Cryptocurrency Scams – How These Works & How To Avoid Them

    1. Fake ICO Scammers

    Currently, the simplest form of crypto scam is called the Fake ICO. Through this scamming technique, scammers can easily deceive new investors by showing fake sale tokens and stock exchange information.

    How It Works

    • The new user becomes a part of the messenger group.
    • The user gets fake messages from a fake administrator.
    • Fake offers include lucrative private bonuses.
    • The scammers convince the interested personnel to transfer ETH to a ‘Special Address.
    • Once the fund transfer is done, the scammers disappear.

    How To Avoid

    • Make an in-depth analysis.
    • Check the Whitepaper carefully.
    • Try to find a legal roadmap of the token info.
    • Discuss with friends before transferring the funds.

    2. Cloned Fishing Websites

    Using this scamming method, scammers create cloned fishing websites to steal confidential information from investors.

    How It Works

    • Depending on your conversation with the scammers, they send out a link to you (usually the link to a fake site that looks like an original cryptocurrency site). You can see phony scammer sites here on the Forex scammer list.
    • They will place lucrative offers on their fake website.
    • When you click on their link and sign up, your credentials go directly to the scammer’s database.

    How To Avoid

    • Only click on any known or recognized links.
    • Before visiting a site, check the URL of the site at your browser’s address.
    • Always pay attention to the special characters in the URL link.

    3. Fake Support Team

    Another common phishing technique is creating a fake support team to get your personal information, like deposit amounts and passwords.

    How It Works

    • The user may face problems while exchanging using Bits, Binance, Coindelta, and other things.
    • The scammers use the same name and image as the administrator of the support team to create a fake identity.
    • The new users may need clarification and trust the fraudster.
    • Scammers then may then ask for ETH or BTC.
    • Users usually send the amount so that their problem gets a solution.
    • Scammers disappear after getting the funds.

    How To Avoid

    • Do not exchange with unknown sources.
    • Whenever you face a problem, try to discuss it with your friends first.
    • Double-check the administrator’s information before sending any funds.
    • It would be best to make an in-depth analysis before transferring any funds.

    4. Fake Exchanges & Apps

    Remember that the crypto world is full of shadow exchanges that can disappear quickly.

    Most of the Bitcoin exchanges take place by using various fake apps.

    How It Works

    • Scammers develop fake apps.
    • The fraudsters share fake documents which look like the original ones.
    • Fake exchange offerings deceive you with lucrative returns.
    • Once you make a transaction, the entire exchange history gets deleted.

    How To Avoid

    • Verify the existence of the Company address.
    • Verify the trading volumes and whether there is any unrealistic spike.
    • Study and analyze.

    5. Cloud Mining Scammers

    Because of the higher price of the mining equipment, crypto scammers have created various cloud mining scams.

    How It Works

    • Scammers start the conversation to learn about the expertise of the victim in mining.
    • Scammers then show different types of mining opportunities.
    • They will try to gain your trust by showing fake documents.
    • They generate counterfeit wallets using forged documents.
    • When you transfer the fund, the cheater disappears.

    How To Avoid

    • Stop checking unwanted messages.
    • Do not share any cryptographic data with unknown administrators.
    • Never send funds to a wallet that is not registered by your documents.

    6. Ponzi, Pyramid, And Multi-Level

    A Ponzi scheme scam is a type of cryptocurrency scam that involves well-paid returns using the funds of new investors.

    How It Works

    • Scamming platforms usually hire affiliates or scammers intending to sell fake claims.
    • The scammers deceive the new investors due to those fake promises of high returns.
    • When the investor makes a deposit, the fraudsters are nowhere to be found.

    How To Avoid

    • Before you make any investment, make a thorough check of the platform.
    • Most Ponzi schemes usually don’t reveal the information of the owners.
    • Check and verify the legal status of those platforms.
    • Try to analyze the user reviews of the platform.

    Before you finish, you can learn about the Forex Brokers scams in my Blog section.

    7. Fake Pools & OTC Scammers

    A fake Pool is a type of cryptocurrency scam mainly arranged using a telegram or discord group.

    How It Works

    • The scammers usually make the first approach by providing a profitable Bitcoin trading offer.
    • They make offerings like a 5 to 10 percent surcharge.
    • When you send the cryptographic data, the scammers delete all the information of the account details and then disappear.

    How To Avoid

    • Never exchange OTC messages through Discord or Telegram groups.
    • Do not get deceived by seeing the lucrative returns or offerings.

    8. Pumps & Dumps

    A dedicated group (better known as the group of pumps & dumps) usually manipulates the volume & price of a crypto coin.

    How It Works

    • Initially, they try to pump the price proportionately to a large coin volume.
    • Then, they sell the coin by dumping it.
    • The higher authority of these groups usually decides when and how to pump the price.

    How To Avoid

    • To be safe, never engage in these groups, even if they offer profitable returns.

    Always make an in-depth analysis before buying or selling any coin.



    6 Responses

    1. Cryptocurrency is a digital currency that doesn’t rely on central banks or trusted third parties to verify transactions and create new currency units.
      Instead, it uses cryptography to confirm transactions on a publicly distributed ledger called a blockchain.
      That definition might seem downright cryptic right now.
      But, by the end of this overview, you won’t need a decryption key to understand crypto.

      There are thousands of different cryptocurrencies
      in circulation, each with varying values. The first cryptocurrency, Bitcoin (CRYPTO:BTC), was
      developed in 2009 by a programmer using the pseudonym Satoshi Nakamoto.

      In a 2008 white paper entitled, “A Peer-to-Peer Electronic Cash System,” Nakamoto provides
      the first description of blockchain. Blockchain is
      the technology that enables cryptocurrency to work like government-issued (fiat) currencies without the involvement of any
      central bank or trusted third party.

      Specifically, blockchain solves the “double-spending problem” associated with digital cash.
      Since digital information is easily copied, digital money requires a mechanism that reliably prevents a currency
      unit from being “duplicated” or otherwise spent more than once.

      The global financial system, as a collective entity,
      has historically been responsible for establishing and ensuring the legitimacy of monetary transactions.

      The validity of cryptocurrency is established and maintained without
      any involvement by the world’s central banks.
      Instead, ledgers of cryptocurrency transactions are publicly maintained.
      Transactions verified by blockchain technology are immutable, meaning they cannot be changed.

      That prevents hackers from producing fraudulent transaction records and establishes
      trust among users.

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