4 Common Cryptocurrency Scams Investors Should Know

The cryptocurrency exchange market is a super-fertile soil for fraud. Statistics say that 1 in 60 coins are legit, hence staying in the loop of things is an absolute must in this line of business. Cryptos are not regulated by any government nor are they backed up by any collateral, like gold, and the prices are driven exclusively by the supply and demand. So, safety precautions are necessary if you don’t want to fall victim to crypto-predators. As an investor, you have a responsibility to do your own research about the potential risks. Be careful not to be blinded by the prospect of making big bucks quickly, this is exactly what the crooks are counting on. Here are some common scams swirling around in the crypto world.

Do’s and Don’ts

Source: inspirationfeed

First off, if you don’t really understand how virtual exchange works, do not invest any money in anything. The market is unpredictable and volatile even for experienced investors, so if you don’t understand the risk stay away from it until you at least get familiar with the basic dynamics of the crypto community. Furthermore, don’t play with your hard-earned money by trying to predict the movements on the exchange – in order to become a speculator, you’re going to need years of experience, and even then, it’s still a gamble. Do not fall for “IRS approved” portfolios since the IRS does not monitor any transactions of cryptocurrencies. And, needless to say, in case you do own some coins in your e-wallet, don’t share your keys with anyone, ever.

Scammers are often in a hurry to sell coins or services, trying to put immense pressure on the victim to grab that once in a lifetime deal. If you resist, they will move on quickly, which should be a major red flag in itself. There is an option to run a background check on every dealer which is a very helpful tool especially for investors that never traded on the exchange market before. Every bit of help should be welcomed with open arms since it can spare you a lot of grief in the future.

As stated before, and couldn’t be stressed enough, do your homework on every dealer and every cryptocurrency that you plan to invest into. No one in the cyber world bears the responsibility to disclose risks of trading. You need to take care of your finances by researching, and if you’re still not sure about the sincerity of the service or offer, take a step back and investigate some more before giving away any personal information.

And last, but not least important, read the fine print. Crypto scammers use endless statements of terms and conditions in order to confuse victims. This is not considered a classic fraud since they did provide you with the terms of purchase, you just chose not to bother with infinite pages of odd terminology. Again, if you feel that the other side is putting a rush on things do not share your personal or bank information, since this is the perfect recipe crooks use over and over again.  If the deal sounds too good to be true, it probably is. On ways of how to trade Bitcoin safely go to techgenyz.com.

1. Fake Websites

Source: Northglen News

There are literally millions of imposter websites of the legit companies on the internet. Someone you trust might have given you a tip about a good opportunity for investment by giving you the name of the company. Then, you search for it and click on the first webpage that pops up. This is where you can get sidetracked since this might not be the company you got a tip on, even though the webpage looks identical. Look for the little padlock sign next to the URL bar as well as “https” before the link. If either one is missing, it’s a fake website.

In addition, when it’s time to make a payment don’t just click on it since it can take you to a fraudulent site where hackers can clean out your bank account. To avoid this, type in the URL address for payment carefully and always double-check it. Scammers can change one symbol in the URL that you’re not going to be able to notice which will take you to their site instead.

2. Hoax Mobile Apps

Source: ABC

This is just another way scammers use to con investors. Fake cryptocurrency apps are available for download for iOS and Android users both. When downloading an app pay attention to their logo, which is always slightly different than the original, misspellings, and coloring. They do look very similar, so focus on the details. If you don’t need a mobile app to trade on the market, just skip it and use your desktop instead.

3. Social Media Offers

Source: CoinDesk

Be extra careful about social media offers to buy cryptocurrencies or services that need to be paid using coins. Social networks are full of fake accounts, that are usually followed by bots. If you pay for something with your digital money, even a very small amount, chances are you’re never seeing it again. Replies that you see on the message are probably fake too.

4. Scamming Emails

Source: Money Crashers

If you are doing business with a legitimate company, you might receive emails from them sometimes. However, cybercriminals use emails that look exactly like the ones from your business partners. There is usually a link that you’re supposed to click – don’t! These links will take you directly where scammers want you; on the fake websites, asking you to buy or make payments for services and coins that also do not exist. Instead, get in contact with a live person working for the legitimate company you’re dealing with. Double-check if they sent you any emails with an attached offer. Stay on the safe side.

Unfortunately, criminals’ methods are ever-evolving. A person without any experience in trading should always gather as much information as possible about cryptocurrencies and the ways exchange market works, before buying a single coin. You are responsible to protect your investment, so do your due diligence. If ever in doubt whether you should go along and follow the masses, stop and think again. In case a dealer is in a hurry to sell you coins or services, pass on the opportunity – most likely is a scam.

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