6 Common Cryptocurrency Scams And How to Avoid Them – A 2022 Guide

When you first read and learn about cryptocurrencies, you might find that they’re quite complicated and confusing – which is exactly what makes them a perfect target for scammers. However, with a bit of knowledge, you can actually do a lot of things that will protect you – and your investments – from these con artists.

If you are wondering what the most basic cryptocurrencies scams are and how to successfully avoid them, you might find this article to be quite helpful. The text below is going to feature a guide that will allow you to recognize them as soon as you come across them. Let’s take a closer look:

  1. Fraudulent Wallets And Trades

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The two things that you should definitely look out for are the two most common frauds – fake coins transactions and wallets. Although they might seem legitimate, they can easily separate you from your coins. Some of them might appeal to people because they offer various promotions, while the other can pressure individuals to open an account and deposit money.

However, once you deposit funds, the platform you are using might charge you with a high fee, which can easily make it impossible or hard to retreat the funds. On the other hand, they can withdraw your entire deposit. There are a few things that you can do to avoid this, including opting for popular wallets and trading platforms.

Additionally, you should research all transactions or wallets that you are thinking about using before you sign-up for a particular site. So, check who developed it, the reviews people posted, as well as whether or not the business is registered. One more thing that you should keep in mind is to never choose a random platform, instead only choose to get ones that are renowned and recognized, and ones that come from official websites or stores.

  1. Phishing Frauds

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This is, perhaps, a scam that you are already aware of since it usually targets people who have accounts with the largest banks. This can happen when you receive an email or message that resembles the one that you usually receive from the bank you are using. They usually include a link that’ll redirect you to a platform that resembles the one you are utilizing, however, in this situation, it is a fraudulent one.

Once you provide your personal information, the scammer will then have all the details they need for logging into your actual account and withdrawing all of your coins. According to the expert Jesse Singh, you should always check the URLs of the link and compare it to the original website, never click on any link that looks suspicious, and you should never give your login credentials.

  1. Out-of-Date Fraud Methods

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Cryptos are relatively a new thing, nonetheless, there are various tricksters out there that utilize old-school fraud methods. One of the best patterns of this is when someone receives a call, message, or email from a person who claims to work for the IRS. This non-existent tax worker can attempt to make you think that you owe the IRS payments and that you can face lawsuits if you do not pay the amount.

Hence, if you are ever contacted by someone who pretends to work for the IRS or someone assuring you a portion of a huge sum of bitcoins, use your gut feeling and common knowledge to recognize that it is a fraud. You can always check with the IRS if you truly owe them money, however, be the one calling them. Keep in mind that you should never trust unrequested emails, reports, or calls.

  1. A Pyramid Plan

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This is relatively a plain fraud, nonetheless, it is incredibly effective, one that attracts people by promising them extremely high returns. Basically, a promoter will attempt to persuade you to support their business plans. The initial investors do receive good returns, however, the money they receive comes from other people that also funded the scheme.

Once an individual is convinced that it is a “genuine” plan, the investors will then transfer the capital into the scam and they also might encourage other people to do it as well. Now, what happens next is that the plan usually collapses since the promoter takes all the funds and simply disappears.

This is why you must be extra careful if you come across a promoter that encourages you to fund in their project, as well as reassure you to involve other people in order to gain larger returns. Additionally, you should never, I repeat, never trust anyone that promises you profits that sound too good to be real.

  1. Malware And Corrupted Files

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You already know malware and corrupted files have been used by online scammers everywhere for a wide range of online frauds. As mentioned earlier, new crypto traders are possibly confused by the technological characteristics of cryptos, hence, malware is one of the largest threats that they face.

Now, these scammers do not steal your credit card information or account data, instead, they develop a “crypto-malware” that is manufactured to gain entree to a wallet and steal the funds. This is why you must have a proper antivirus that you’ll update frequently, never download any software that is not reputable, and never open attachments that look questionable.

  1. Mining Fraud

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If you read all about cryptocurrencies, you are aware that these mines allow you to obtain coins without you needing to buy expensive programs and hardware. There are various authorized mines out there, nevertheless, there are fake ones as well. Some promise people incredible profits and fail to tell them about the giant expenses, while others choose to withdraw all of your coins.

This is why you should always check whether or not the mine is legitimate before opening an account. Check if they use “https”, how long have they been operating for, as well as if there are more positive or negative reviews on the official or independent websites. Be extremely careful of businesses that guarantee you a 100% profit for using their platform.

Conclusion

As you can see, there is a wide range of cryptocurrency scams out there, ones that can definitely leave you without your investment. By following the tips from above, you’ll hopefully be able to keep your investment and coins safe. So, now that you know what you should look out for, do not lose any more time. Instead, start searching for a reputable platform and wallet, and start trading bitcoins right away!