With the skyrocketing number of cryptocurrencies in the trading sector, scams are bound to confuse traders, especially the new ones. Thousands of traders have reported cases of being scammed into purchasing non existent cryptocurrencies. Scammers are now taking advantage of loopholes to con unsuspecting traders. As an aspiring trader, it's important to learn how to spot these scammers. The following are common scams in the crypto industry. Also, you will learn how to avoid these scams.
Is It Safe?
Just like other popular investment options, crypto naturally attracts scam artists. There are thieves who are constantly seeking to make quick money online. And they'll do anything possible to try and steal from investors. Even seasoned investors wonder if crypto investments are safe.
But the truth is that cryptocurrency is an extremely complicated idea. And this is particularly because the industry is unregulated. However, it's important to note that digital transactions are often stored in blockchains. And once a block is added to the end of a chain, it can't be removed.
Despite this, crypto has been widely associated with scams, ransom demands, as well as, other financial misdeeds.
How To Spot Crypt Scams
There's an endless list of cryptocurrency scams. But the good news is that there are certain things you can do to protect yourself against such. First, you should avoid taking any information at face value. Second, be curious. Third, do your own research.
If you're prompted to click on a dodgy link, don't do it. Visiting shady websites allows thieves to plant malware on your digital device and steal your personal information. The scammer's main intention is to obtain the passphrase that grants access to your cryptocurrency digital wallet.
So, be sure to choose the most secure crypto wallet. Make sure that it's always internet-enabled and typically featured browser extensions for Mozilla Firefox and Google Chrome.
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Cryptocurrency Phishing Scams
Crypto phishing scams are similar to faked emails or SMS texts. They're extremely common. Reports show that cryptocurrency investments are highly profitable but there are so many opportunists who're ready to steal from investors. In most cases, they'll do that by pulling a classical Ponzi scam.
Essentially, a Ponzi scam refers to a situation where the money you invest on assets is used to pay earlier investors instead of being utilized to generate returns. And in the process, the scammers siphon off some of the money for themselves.
There are over 11,000 cryptos in existence today. And not all of them are genuine. So before making a huge investment, be sure to conduct extensive research. Shop around for secure options that won't disappoint you. But always remember that when it comes to digital investments, you're solely responsible for protecting your money.
Finally, you have decided to try crypt trading. That's one of the boldest steps an investor can make. You can reap rewards from cryptocurrency trading. However, did you know that scammers can make your trading experience awful? Research shows that more and more new traders are losing billions daily to scammers. Spot these cammers with the above tips and tricks.