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The Types of Crypto Scams

Crypto Scams

Cryptocurrencies are all the rage right now, and with good reason. They offer a way to make secure, anonymous transactions that can’t be tampered with. However, this also makes them a target for scammers. There are many different types of crypto scams out there, and it’s important to know what to watch out for. 

In this blog post, we will discuss the most common crypto scams that you should definitely avoid.

Let’s take a look at them.

Crypto Scams

 

  • Crypto job offer scam

 

Crypto jobs offer scams that work in a similar way to the Bitcoin Ponzi Schemes. They offer you to earn money very quickly and easily but first, you have to invest some Bitcoins. The crypto scams will then disappear with your invested bitcoins or maybe they will even give you some small return for your investment, that is if you are lucky enough.

 

  • Fake exchanges

 

Just like any other online investment, you must be very careful about the exchange platforms you are using. There are several fake cryptocurrency exchanges on the internet. They will keep your deposited cryptocurrencies safe but in return, they will never give you any profits or returns on your investment. It is better to choose a more reputable bitcoin exchange platform with good reviews online. 

You can visit BitcoinExchangeGuide for more information about legit bitcoin exchanges and brokers. Also, there are plenty of useful resources on Reddit where people share their experiences with different crypto exchanges and broker companies.

 

  • Crypto investment scam

 

There are many ways crypto scams can happen, but one of the most popular is by luring investors into an initial token offering. In this case, investors send their Ether or Bitcoin to the contract address that supposedly holds the tokens they just bought. The tokens never arrive and the scammers disappear with all of their ill-gotten gains.

In other cases, ICO participants may only receive part of what they were promised. For example, a project called CoinDash raised $12 million in its July 2017 ICO sale after promising potential participants a 15 percent bonus for sharing a link from an affiliate’s referral code. People who actually paid money to CoinDash to get their bonuses were given different addresses than those who got free tokens through affiliate links.

 

  • Cryptocurrency wallet theft

 

Crypto Scams: The cryptocurrency wallet theft is a type of scam in which the victim’s cryptocurrency is stolen from their wallet. This can be done through malware or by stealing the private keys to the wallet. Victims of this scam have lost millions of dollars. One of the ways this scam is carried out is through malware that is secretly installed on the victim’s computer. 

The malware monitors the victim’s system for information used to log into cryptocurrency exchanges or digital wallets. This includes usernames, passwords, and private keys. Then once this information has been gathered it can be sent to an anonymous third party who then takes control of the account by gaining access to all financial assets stored within it.

 

  • Crypto lending scam

 

The crypto lending scam is a type of scam in which the victim is offered a loan with high-interest rates. The scammers will often promise to return the loan with high returns on investment. Victims of this scam have lost millions of dollars by taking part in crypto lending scams.

 

  • Fake ICOs

 

Crypto Scams: An Initial Coin Offering, also known as an ICO, is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s similar to an IPO with the key difference that ICO participants do not acquire equity stakes in the company, but obtain tokens that serve as a voucher for the platform and its products and services.

There are so many scams out there it’s ridiculous! People out to make a quick buck will find any way they can to separate you from your money. Even those who think they know everything about crypto and investing still get scammed every day. And new investors, well they are just asking for it. 

There are several types of scamming going on with Bitcoin and the rest of the cryptos right now. And most people don’t even realize what’s happening until it’s too late. The best thing you can do is make yourself aware of what types of crypto scams are out there, how they work, and which ones are common in this world of cryptocurrency trading.

Written by Shivam Bhateja

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