Cryptocurrency Scams: Beware Of These Scams!

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Amidst this Coronavirus pandemic, scams are flourishing in the cryptocurrency world. Scammers are taking advantage of malware, fake investment programs, and even fake donations. They also take advantage of buyers and sellers of Bitcoin, Ethereum, and other cryptocurrencies as they are the hot commodities in online trading. It is possible for a smart investor to harvest big profits through cryptocurrency and blockchain platform. But this can blind some people to the risks and enable crooks to lure them into scams.

Cryptocurrency Scams: Beware Of These Scams

The warning signs of those scams are:

  • Someone sends you a message out of the blue about a virtual currency investment opportunity 
  • claims that a virtual currency investment involves no risk and surefire profits

Cryptocurrency Scams: Beware Of These Scams

What to do?

Here is a list of some Do’s when you get warnings of being scammed.

  • Try to Understand the risk
  • Scammers often try to create a false sense of urgency and you should do resist pressure to buy right now.
  • check out any dealer in virtual currency options or futures contracts before you buy
  • Thoroughly research any virtual currency platform or digital wallet provider before providing any credit card information, wiring money, or before disclosing sensitive personal data.
  • Carefully read any agreement with a digital wallet provider

What not to do?

Here is a list of some Dont’s when you get warnings of being scammed.

  • Don’t put money in a virtual currency investment if you don’t really understand its working.
  • Don’t deposit money that you can’t afford to lose
  • Don’t buy virtual currencies based on any anonymous tips
  • Don’t share your “private keys” with anyone

Most Common Cryptocurrency Scams

Here are the 4 most common crypto scams and ways to avoid becoming a victim.

  • Fake websites

There are a surprising number of websites that have been set up to resemble original, valid startup companies. Check whether there is a small lock icon indicating security near the URL bar and “https” in the site address. If these two factors are missing, then think twice and conduct researches on those websites before investing money. 

  • Fake mobile apps

Many fake mobile apps are available for download through Google Play and the Apple App Store. If the branding looks inauthentic with strange coloring or an incorrect logo then do not provide access to any personal details or your mail address.

  • Offers through social media

Don’t trust offers that come from fake accounts of Twitter or Facebook, especially if there seems to be an impossible result. If someone on these platforms asks for even a small amount of your cryptocurrency, you have to be extra careful.

  • Scam mails

Take care of scam mails even if it looks exactly like an email you received from a legitimate cryptocurrency company. Don’t fall for these fake email and website that often announce fake ICOs, or initial coin offerings, as a way to steal substantial funds.

As you consider investing in different crypto startups and exchanges, always beware of these scams. Scams are everywhere online and scammers are finding more ways to use the interest of people in cryptocurrency.  

Fred Harris is a writer and performer who got involved in cryptocurrencies at the start of 2017 when he was hired to work at a Bitcoin-related company. He's passionate about cryptocurrency, digital rights, IT, and tech and has been an avid writer and follower of the crypto and blockchain space since 2015. He is specialized in machine learning, artificial intelligence, blockchain technology, and big data.

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