Most Common Cryptocurrency Scams and How To Avoid Them

Once we become involved in any cryptocurrency trade, recognizing various market risks doesn’t take time. One of the most prominent risks is not the market’s volatility but seamsters.

Scams have been a part of society from time immemorial, and cryptocurrency is no exception. As you contemplate financing in different startups and exchange platforms, be conscious of the potential of losing your cryptocurrency investments due to frauds and scams.

Experts say that while researching digital cryptocurrency firms and startups, you should verify that they are blockchain-powered, which means they keep comprehensive transaction data. Genuine people should run the firm like If the startup that you are considering lacks these mentioned pointers you should reconsider your selection.

How to Spot a Cryptocurrency Scam

As with any other market-shaking investment, there are always burgles trying to take advantage of investors’ willingness to make money and their lack of experience.

These days, cryptocurrencies, notably Bitcoin, are all the rage. They have also delivered massive returns that investors can only dream about. Scammers interested in cryptocurrency are naturally drawn to this. It might be tough to tell the true face between con artists and con experts.

Cryptocurrency Scams

The following is a list of the most shared cryptocurrency scams. The most excellent method to protect yourself, like with any investment decision, is to:

  • Never take anything a person promises at face value.
  • Keep your curiosity on your toes.
  • Before making any vast transactions, always do a background check.

Let us look into different ways people try to scam innocent investors into giving them their hard-earned money and how to avoid them

Most Common Crypto Scams and Tips to Avoid Them

1. Phony Sites

You might have got a solid tip from someone with a lot of skill and yet become a victim by mistakenly accessing a bogus website. An astounding number of websites have been put up to look like trustworthy, legitimate startup firms. Think if there isn’t a little lock icon suggesting security near the URL bar and no “/-https” in the site address.

Even though the site looks to be the one you expected to be visiting, you may be directed to a different payment platform. Of course, that platform isn’t pointing you in the direction of the bitcoin investment you’ve been looking at. To circumvent this, copy-paste the URL exactly as it appears in your browser. Also, double-check your work.

2. Fake mobile apps

Scamsters also frequently use bogus applications available for download on Google Play and the Apple App Store to defraud cryptocurrency investors. Although investors can generally quickly identify and delete fraudulent applications, it doesn’t mean the apps aren’t influencing many bottom lines.

Many prospective investors who are desirous of earning fast money with little knowledge of the crypto market might have downloaded these bogus applications and have become a subject of crypto fraud

Be aware of different criteria per which the app has to be evaluated and always check user reviews. They help give insights into how the application functions

3. Conning e-mails

Even if the email looks from a reputable cryptocurrency company, act with caution before spending your digital funds. Check whether the email is identical or the logo and branding are the same.

The capability to check on this is one of the reasons why it’s critical to select a company that employs actual people. If you have any doubts about an e-mail, check it with your antivirus or tech expert first. It’s advisable to never go to a website by clicking on a link in a message- they are primarily multifunctional.

Scamsters frequently launch fraudulent ICOs, or initial coin offerings, to steal large sums of money. Don’t get taken in by these counterfeit e-mail and website offers. Take your time going through the specifics.

Unfortunately, there are several methods for some users to mine or steal bitcoin using insecure computing platforms. Before investing in cryptocurrencies, learn more about keeping safe and safeguarding yourself in this growing industry.

4. Giveaway scams

Scamsters may even pretend to be prominent celebrities, businesses, or bitcoin influencers. In what is known as a giveaway scam, several scammers promise to match or double the bitcoin transferred to them to attract the attention of potential victims.

A well-crafted message from what seems to be a legitimate social media account can frequently establish a feeling of legitimacy and ignite a sense of urgency. This illusory “once-in-a-lifetime” chance may entice people to transfer assets immediately with the expectation of receiving an immediate return.

For example, more than $2 million in bitcoin claims were transmitted to Elon Musk impersonators six months before March 31, 2021.

The Bottom Line

As the crypto ecosystem grows in size and complexity, it will likely remain a prime target for fraudsters. Consequently, more novel scamming methods will develop the crypto market complexities. By learning the primary approaches fraudsters use to steal your information (and sooner or later your money), you would be able to sense a crypto-related con promptly and avoid falling victim to it.