The crypto world is full of scammers where each of them tries to come up with varieties scamming techniques with the sole purpose of targeting the newbies.
To keep yourself safe from cryptocurrency scams you have to gather adequate knowledge about all types of the scam-related crypto world. Keep in mind that investing in the crypto world without having proper knowledge can lead you to lose your hard-earned money. In this post, I am going to share a detailed discussion on all the common crypto-scam so that you don’t have to be a victim of that cryptocurrency scam. Without further ado, let’s jump right into the details….
At this moment in time, the simplest form of crypto scam is called the Fake ICOs. 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 get disappeared.
How To Avoid
Make in-depth analysis.
Check the Whitepaper carefully.
Try to find a legal roadmap of the token info. Discuss with friends before transferring the funds.
Scammers create cloned fishing websites to steal confidential information of the investors using this scamming method.
How It Works
Depending on your conversation with the scammers, they send out a link to you (usually the link of a fake site that looks like an original cryptocurrency site).
They will place lucrative offers on their fake website.
When you click on their link and sign up, your credentials go directly to the database of the scammers.
Because of the higher price of the mining equipment, crypto scammers have come up with varied types of cloud mining scams.
How It Works
Scammers start the conversation to know the expertise of the victim about mining.
Scammers then show different types of mining opportunities. They will try to gain your trust by showing fake documents. They generate fake wallets using forgery documents. When you transfer the fund, the cheater gets disappeared.
How To Avoid
Stop checking the unwanted messages. Do not share any cryptographic data with unknown administrators. Never send funds to a wallet that is not registered by your documents.
Ponzi scheme scam is the type of cryptocurrency scam that involves well-paid returns using the funds of the new investors.
How It Works
Scamming platforms usually hire affiliates or scammers with a view to selling fake claims.
The new investors are deceived by the scammers 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 of the 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 finished you can know about the forex broker scam in my Blog section.
Fake Pool is the type of cryptocurrency scam that is 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 group.
Do not get deceived by seeing the lucrative returns or offerings.
Before finished you can know about the forex broker scam in my Blog section.
A dedicated group (better known as the group of pumps & dumps) usually make manipulation of the volume & price of a crypto coin.
How It Works
nitially, they try to pump the price in proportion to a large volume of the coin. 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 on the safest side, never engage in these types of groups even if they offer profitable returns.
Always make an in-depth analysis before buying or selling any coin.