How to Recognize and Avoid Cryptocurrency Scam

It is not a secret that advanced technology changed the mentalities and lifestyles of people. Of course, we do not want to say that everything around it is positive. However, the human population has finally got the chance to earn money while enjoying the comfort of their room. They can do that by freelancing, starting an eCommerce business, running a vlog, etc. Yet, a method that is becoming more and more popular is crypt investing.

We believe there is no reason to explain what cryptocurrency is. There are millions of blogs out there where beginners can make the first steps. However, understand Bitcoin and other altcoins won’t be enough to improve your financial stability. That is the reason why you should keep an eye on two essential things.

First thing is to develop an effective trading strategy. Doing that won’t be easy until you improve your skills. If you are expecting to get easy money in the crypto world, then there is no need to spend your time. On the other hand, you also need to understand that not everything in that world is good. More precisely, it is a place full of scammers that will try to take your virtual coins. That is the reason why we want to teach you how to recognize and avoid cryptocurrency scam. We will highlight some of the most common types of scams and give you solutions to them. Let’s find them out together.

Source: Medium

Scams with Cloned Phishing Websites

People often do not know how to detect a phishing attack. We can all agree that is a challenging task. All these phishing will look legit and reliable at first glance. More precisely, they won’t look different compared to dozens of websites that you visit daily. However, that doesn’t mean there is no way to determine how a scamming website looks like.

The first thing you should do is checking the URL of the website. We don’t want to say the URL will look different or crazy. That is another factor that is hard to detect. Yet, they often contain similar characters that can confuse people. For example, they will use 0 instead of o or m instead of n, etc.

Let’s describe how the entire process usually works. The scammer usually sends a link to a website where you can solve a particular issue. For instance, he will say that visiting a particular website will help you solve your problem with Binance. The URL will be similar to the original one as well as the design of the website. Logically, the next step is to log in to your account, and the scammer gets all your credentials.

There are two different ways of how you can avoid becoming a victim of this scam. Before everything, do not click on the unrecognized links. As we said, always double-check the URL before sharing your personal information. That is another way how you can ensure your safety.

Source: Money For My Beer

Scams with Fake Apps ad Exchanges

Crypto users use exchanges daily, but not all of them are legit. More precisely, you will easily read in the news that many exchanges work for a couple of days and they simply disappear after that. Yet, that is not the only thing that happens. Fake exchanges usually have high transaction fees. Despite that, the entire withdrawal process may last longer. If the transaction lasts more than 10 hours, you can be sure you became a victim of this scam. Besides, quick and cheap transactions are two main advantages of cryptocurrency. That is the reason why you should not neglect these two situations.

On the other hand, do not forget that scammers are clever people. They attract people in different ways. That is the reason why you may find exchanges that do not charge for transactions at all. Imagine that all of them offer that type of service. We are sure crypto exchanges would not even exist in the world. Be sure the scammers only want to take your money in that way.

There are a couple of ways how you can avoid fake exchanges and apps. You primarily need to verify the legal address of the company. Despite that, reading the news is always a smart decision. These frauds spread quickly, and you will easily find out if some exchanges have a bad reputation. In the end, chase only those exchanges that are transparent. The most professional ones do not have a reason to hide anything.

Source: Kaspersky

Scams with Cloud Mining

Many people do not only want to invest and trade digital currency. They decide to participate in the crypto mining field as well. However, this type of job requires good quality equipment. You will have to spend a lot to purchase the right software as well as to cover the electrical bills. That is the reason why cloud mining has become a popular option. Yet, it also became a popular place for scammers.

A good example of a global scam is the case around MiningMax. It is a cloud service that invited people to invest 3200 dollars for a daily return. Despite that, they offer a bonus of 200 dollars for every person that you invite to their mining network. Believe it or not, scammers managed to earn 250 million dollars in that way.

Basically, the scam always works in the same way. They will offer a mining opportunity that can make another person rich. In that way, they will try to get your trust. Also, they will give you a crypto wallet and allow you to register on a website. Everything will look legit at first glance. Yet, keep in mind that a scammer has access to your password. The first moment you deposit the money, he will log in to your account, take your money, and disappear.

Avoiding this scam is possible in different ways. For instance, don’t show interest in Ponzi, pyramid, and multi-level schemes.

A good example of a Ponzi scheme was Bitconnect. It was a network that regularly worked for a year, and the scammers simply disappeared one day. Believe it or not, the market cap of Bitconnect was around 2 billion dollars. In only 24 hours, the value went down to $40 million. Always think with your head and do not allow others to scam you with some unrealistic and unbelievable offers.

Source: U.Today

Final Thought

As we said, investing and trading with cryptocurrencies is not easy money. You need to improve your knowledge and work hard on your goals. Of course, some legit tools can help you predict certain things on the crypto market. More precisely, they will allow you to optimize your trading and develop an effective strategy. For more info check