Technology has grown to its heights, and it has changed people’s way of thinking, way of work, communication, shopping, and even payments. Everything is digitalized now, which made our life easier, but at the same time, technology has few disadvantages as well.
Technology evolved to contactless payments and business; consumers accept mostly paperless money. So today, we are going to cover everything about future currency, Common Cryptocurrency Scams And How To Avoid Them, which is a pretty discussing topic Worldwide. So, let’s jump into the actual topic as below.
Cryptocurrency, commonly known as Crypto Worldwide, is a digital asset that works as a source of exchange. The entire secure data is maintained and controlled by a computerized system, ‘Cryptography.’ The non-physical money creates hype in the finance world. It is believed to be ‘future money.’
Bitcoin is the first-ever Cryptocurrency, after which thousands of projects came into existence, but not all of them are genuine. So knowing about scams that exist in the digital world is safe.
Common Cryptocurrency Scams And How To Avoid Them?
Here are few researched checklist readers can refer so you can feel safe while trading Cryptos:
Stay away from Fake Websites – Even if you are experienced in finance, you may become a victim by visiting the fraud site knowingly or unknowingly. Scammers use technology and a smart brain to make the fake site look exactly like the original one. Please go only for the “https” protocol site and always stay away from redirecting the portal.
- Misleading Mobile Apps – Phishers create a fake Android App, and people believe it and start trading on the fraud app end up losing personal data and money. Suppose you find any app suspicious, check for grammatical mistakes, have a close look at a company logo because no reputed firm makes such silly mistakes.
- Fake Email Messages – If you get any mail from a source that offers you unbelievable rewards, please stay alert. No firm is going to make rich for no reason. Check for a company name, logo, and spelling mistakes. Take time to research and then go for it.
- The Hype on Social Media – Social media influences many people but stay calm and then reacts. Suppose you come across any posts on social networks that ask you to pay even small Crypto, please don’t rush.
- Copy-Paste Malware – It is the most common way used by scammers to steal digital funds. It manipulates the clipboard data, and careless holders would easily get scammed, and they may send funds to the scammers. So, you must stay careful with such scams, and to avoid them, you must have robust computer security. In addition, you have to ensure that you are copying and pasting the right crypto address to transfer funds.
- Ponzi and Pyramid Schemes – These are the two age-old financial scams. The Ponzi scheme is the financial investment strategy that offers returns to investors with new investor’s funds. As the scammer stops bringing in new investors, the return stops flowing in. One Coin is the famous Crypto Ponzi scheme. A pyramid scam is the business model where members get paid based on the new member enrolling to the scheme. If new members stop enrolling, the money flowing in stops. The best way to avoid such a scam is by researching the Cryptocurrency you are buying, be it BTC or ALT coins.
- Pump & Dump Schemes – It is common for scammers to buy new Crypto coins and tokens to increase its market cap and trigger the fear-of-missing-out feeling in investors’ minds. As the scammers invest in new coins and the market cap increases, they sell the shares for high prices. The process is considered illegal in the security marketplace. However, the pump and dump scheme is the common scam in the Crypto market. You can avoid the scam by choosing only the stable and famous Cryptocurrencies like BTC.
Initial Coin Offerings (ICO’s) – A Fundraising System for a New Crypto
Many ICO’s are genuine, but most of them are nothing to do with technology and business, and they wait to trap innocent people. It is because so many countries have banned ICO and charged files against them.
- People’s Mindset – Many have common thinking that “popular paperless currency are expensive, so let’s invest in a cheap one.” So, we suggest not to go for inexpensive tokens; instead, have a clear look at maximum supply, circulating supply, market cap, and most prominently, the truth behind the coin.
- Too good to be True Offers – Does the opportunity or idea look very rich? Please stay right there and think twice.
- Rise Questions – Research well before dealing with any company from your end. Still, you have any query, contact customer number – any reputed firm, never hesitate to help you out and solve your query.
- Domain Age – The trading platform or any other firm which is more than one year old is safe to use. Also, check for customer reviews about the site and its working method on the site or the general internet.
- Double-check – Please ensure the site you are researching and the platform you want to use is the same.
We hope all the handy and useful tips mentioned above is helpful to you; that ensure safe crypto trading and keeps you away from scam.
To Sum Up
People get attracted to Crypto because one can get a huge income even with small investments. Though it is true, there are some wise measures you need to take. Price rises to the sky and shatters to earth in no time.
So we would like to suggest start only with how much you can bear the loss and research well before going for any crypto. After that, it is about Common Cryptocurrency Scams And How To Avoid Them from our end. For more details about Cryptocurrency, you can click here.
Do you have anything to say about crypto scams? Please feel free to discuss it with us in the comments section below. Moreover, to get information on how to report a Bitcoin Scammer, please access the link here.