Cryptocurrency Scams and How To Keep Away From Them

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Cryptocurrency Scams: The new-era digital monetary currency, called cryptocurrency,
has a lot of risks involved. And here, the talk is not about just the volatility and
uncertainty of the market, but the online scams that are rising daily. These scams are a
way of the new age of technology, and cryptocurrency is no different.
Cryptocurrency is all virtual. There is no physical entity like banks, financial institutions
involved. Some well-known Cryptocurrencies are bitcoin and ether, but there are other
new ones in the market too. People mostly buy a cryptocurrency for investment. Some
people use cryptocurrency to do online transactions without having to give a transaction
fee. It can be purchased through credit card payment or through a process called
“mining.” It is stored in your mobile, computer, or any other hardware in a digital wallet.
Things You Must Learn Cryptocurrency Before Investing Right Away
Before you go about investing, know that it is not at all similar to using your traditional
currency. Moreover, scammers are requesting people to pay via cryptocurrency for the
reason that the payment once done is irreversible.
Not Backed Up By The Government: Unlike the physical money that is backed up by
the government, this virtual currency is driven entirely by the curves of demand and
supply. This can create fluctuations, and in turn, might make profits or losses for
investors. Moreover, cryptocurrency investments are very flexible and have fewer
regulations and protection as compared to other financial assets like stock, mutual funds,
or bonds. When you store your cryptocurrency in the digital wallet of a company, and the
company goes bankrupt or out of business, the government won’t be able to help you get
your money back.
Unstable Value: The value of cryptocurrency fluctuates very frequently. It changes by
the hour. Sometimes when the value of this currency goes down, there is no assurance
that it will go up again.
Cryptocurrency Scams
As more people are going for this new-age currency, scammers are finding more ways to
get under the bridge. Most scams are mostly an exaggeration of what could happen in real
life.
It is widely seen that most of the scams are just new versions of the old, vintage frauds.
The commodity trading commission from America has warned investors of these kinds of
scams where the scammers use chat rooms, push messages to manipulate people.
One needs to stay away from the following deals while investing in cryptocurrency
unclear or blur claims about a company with no specifications
assuring free money
gives you the assurance that you will make a particular amount if you invest
the promise of an enormous payout that might double your money
Here is a list of some common cryptocurrency scams and how you can avoid them
Phoney Websites
You might be an expert at investing, but you are sure to come across imposter one day or
the other. How to recognize a scam website? If the small lock and the “https” in the URL
are missing, it’s a cryptocurrency scam website. There is n number of websites that look
exactly like the original. So take every step cautiously.
Fake Mobile Applications
Another common way to trick people is with fake apps that are present in the play store
and apple store. Most stakeholders easily find such application and get them removes. But
still, there are a relative amount of cryptocurrency scams taking place through such apps.
It would be best if you watched out for inauthentic branding, misspelled brand names and
copy, change in the original logo shape or colour.
Fraudulent Mails
Emails have always been one of the massive scam tools for all kinds of shams. Therefore,
you need to be super careful and look out for signs all over. Does the brand name or logo
sound inappropriate? Is the email id linked to the correct and legitimate company? If you
have second thoughts about the company that sent the mail, connect the dots and ask
someone who works there.
Most scammers use emails to announce phoney ICOs, initial coin offerings. It is very
important to take time and do the research.
Dull Social Media Updates and Tweets
Fake accounts are panned out everywhere, even on social media. Never trust offers that
come on social media handles like Twitter and Facebook. Especially when what they are
offering is beyond exaggeration or beyond what can be offered.
Malicious bots are good at making it seem legitimate. If you even invest a small amount in
it, it is most likely that you will never see that money again in your life.
Cryptojacking
Here, the scammers use the processing power of your phone or computer to get through it
and use the cryptocurrency to their benefit. If you visit a scam website, the scammers can
put some fraudulent code on your device and help themselves through without you even
noticing.