Cryptocurrency scams are another challenge for the blockchain revolution that makes cryptos a villain for federal regulators. “Get rich quick” is one of the main reasons people tap into the cryptocurrency world. Investors start to trade in crypto by believing that they will get rich overnight. Due to such a mindset, they often face huge losses or get scammed. In this article, we are pointing out how to avoid cryptocurrency scams.
The popularity of Bitcoin and Cryptocurrency is increasing day by day. As cryptos are gaining popularity, scammers are also coming with advanced levels of creativity. There are various types of crypto scams that individual investors are facing.
Today, it’s not hidden from the mainstream media that the crypto market has faced many security issues. The Crypto market is not just the most profitable but riskier as well. There were some hacking events when millions of dollars worth of crypto were stolen by hackers.
It’s not only crypto exchanges or wallets that got hacked but also there are many cases when individual crypto investors are scammed. Here we will also talk about the ways how scammers can scam crypto investors and how they can save themselves from such scams.
1. Don’t trust anyone
If it comes to your money, never trust anyone. In the crypto world, many crypto investors lose their money because they trusted someone or were influenced by celebrities or crypto influencers.
There are many crypto enthusiasts in this world who make money by promoting a particular cryptocurrency and pumping their money into them. Once they pumped their money, they start their loudspeaker and explain on social media how some particular cryptocurrency value can increase in the future.
The value of cryptocurrency will increase when individual investors will start to pump their money. Once their pumping increased the value, such crypto enthusiasts use to sell out their all holdings for a huge profit. Because of this individual investors start panic selling in the loss.
If someone wants the same invested money, at least they need to wait some more months (or even years) to cover their loss. However, the particular crypto doesn’t need to touch their recent ATH where an investor can cover their loss in the future.
What to do:
- Never get influenced by anyone if it comes to your money.
- Never trust blindly any social media or Youtube influencer.
- Never mix online dating with financial advice.
- Never share your account id, password, or seed phrase with anyone.
- Do your research always before any investment.
2. Block Unknown People on Telegram
Today, Telegram is a popular social media platform where the crypto community lives. As the crypto community is establishing its outreach on Telegram, they are also creating an opportunity for scammers.
Telegram provides an easy solution to sending texts to unknown contacts by hiding their real identity. Because of such services, Crypto scams are widely happening over Telegram. In an article, Business Insider called Telegram, a new playground for crypto scammers.
The scammers use the Telegram app to send lucrative investment plans or suggest investing in some particular projects. Sometimes they also act as customer support of a crypto exchange and ask to follow their orders.
The scammers also use the lookalike id, the same profile pic, and almost the same username. You must keep in mind that an authentic crypto exchange never contacts you directly in your Telegram inbox. You must block everyone unknown and something offering you over Telegram.
What to do:
- Never take financial advice seriously on the groups or channels on Telegram.
- Beware of lookalike accounts, channels, groups, apps, or websites.
- Block unknown contacts as soon as possible without paying attention to their texts.
- Never participate in any giveaways or get-rich-quick schemes.
3. Ignore BTC, USDT, & Other Cryptocurrencies Giveaway
Giveaway is one of the most popular terms in the crypto world. In giveaways, scammers promise to send some cryptos to your wallets or exchange account.
“Hey, you need to send 0.01 BTC to this Bitcoin address to participate in the $0.5 BTC Giveaway. You have to do that, so we can get your address to send back your BTC.” If you’re in crypto, you may have received such texts on Telegram or other Social Media platforms.
You must beware, and avoid such scams. You need to keep in mind that, there is no such scheme existing in the world where someone will benefit you for nothing. Such giveaways are mainly organized by scammers who target crypto investors globally.
There is another giveaway trend on Twitter, that is mainly used to get popularity in a short amount of time and increase followers and retweets. Some Twitter accounts use to organize giveaways 24×7 but no one gets a few bucks even after following the all tasks.
What to do:
- Avoid such Giveaways.
- Never expect anything from anyone for free.
- Beware of lookalike social media celebrities’ accounts.
- Ignore and block such accounts that constantly offer giveaways on social media.
“Prevention is better than cure.” The crypto world is full of ups and downs. The current market situation is also not very good. In such hard times, if any crypto investor gets scammed, it can be not just a financial loss for him, but can also impact their mental health. We suggest our readers study maximum before investing in any cryptocurrency and avoid any financial advice that they are getting online or from unknown people. The Crypto market is not just profitable but also riskier which behaves like a roller coaster journey.