SWIMMING IN SHARK INFESTED CRYPTO WATERS

Most common cryptocurrency scams and How to avoid them.

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SWIMMING IN SHARK INFESTED CRYPTO WATERS

The rise of cryptocurrencies and blockchain tokens has gotten the eye of investors from all over the globe. There are several honest projects and products within the cryptocurrency space however there also are some dishonest ones. There are folks out there who want to scam you and steal your cash.

Currently the crypto space is basically unregulated. Compared to the normal financial world, within the crypto world it’s easier for scammers to defraud individuals and get away with it. These are few of the most common scams in the crypto space.

Fake sites

If you’re about to trade a cryptocurrency, whether or not it’s for the first time or you are logging into your trading account for the 400th time, ensure it’s the real website.

Criminals pay lots of time building faux websites that look very just like the real thing in the hope you’ll be fooled and will enter your account details into their website so that they can then use your details to empty your real account.

One victim lost over £1,000 when he tapped the name of his Bitcoin trading website into a search engine, clicked on the top result and made a trade. It turned out to be a faux website and within minutes his real account had been hacked and empty.

Before you enter any sensitive account details into a web site certify it’s real and secure. The web site address ought to begin with “https://” the s indicates that it’s secure. Additionally search for a padlock image either within the address bar or the bottom frame of your screen.

Scam ICOs

Initial Coin Offerings (ICOs) have opened up the globe of startup seed financing to the typical investor. Presently there’s very little to no regulation surrounding ICOs. With very little oversight, some scammers are using ICOs to defraud folks. Most ICOs have honest intentions, but some don’t. Scam ICOs have every intention to steal the money raised once the crowd funding phase has ended.

How to avoid this scam

To avoid falling prey to scam ICOs there’s only 1 thing you’ll do and that’s doing due diligence. Before investment in any ICO certify you are doing your homework. ICO due diligence is a topic for a whole other article. However generally if the ICO lacks transparency and community support there might be one thing shady happening.

Message App Scams

Telegram and Slack are popular messaging apps that cryptocurrency developers use to communicate with the community. As a result of this, most of the communication regarding new ICO’s, ICO updates, etc happen on these apps. The issue is, there are a lot of scammers that use these too…

Brilliant deals

When there is a ton of hype around an opportunity, as there’s with Bitcoin just now, scammers can really take advantage of that enthusiasm. Beware calls where you are offered a tremendous deal, like the promise of big returns on a new cryptocurrency or an incredible price for Bitcoin.

The chances are that if it sounds too good to be true it most likely is.

If you would like to invest then take some time and do your research, do not buy on the spur of the instant because you are being pressured to simply accept a suspiciously good deal.

Think twice and do your own research before you invest in something.

In summary,

These are just a few of the most ways in which scammers try to get your money. As the blockchain space evolves, so too will the scammers. Always be vigilant when handling your cryptocurrencies and tokens. In the crypto space, you’re your own bank. Therefore take the same level of seriousness that a bank would when handling your funds.