• Cryptocurrency fraud poses a significant threat to the digital realm as innocent individuals exploit it using a variety of deceptive tactics.
• Awareness of these scams is essential to protect your assets and information.  

Nowadays cryptocurrency scams are something that are evolving at a large scale. Now and then, we get to hear scams related to cryptocurrencies. As a cryptocurrency dealer, you might know that there are risks and we need to know of them to protect ourselves from fraud. In this article, we’ll dive into the 5 cryptocurrency scams you must know about. 

New units are controlled and transactions for trading worldwide take place due to cryptocurrencies. Decentralized technology, called Blockchain is used in cryptocurrencies that record all transactions happening between two entities. Apart from traditional currencies, cryptocurrency is a globally used currency for trading transactions. No government or individual is the owner of these types of currencies, therefore, these can be used for trading in any part of the world. 

5 Scams You Must Know About

Investment Scams 

Investment scams are those types of scams where people falsely promise high returns with no risk. Some people who deal in cryptocurrency falls into these type of scams, resulting in huge loss. Scammers create fake plans and use bluff information to bring people to invest money in their plans. These scams take advantage of instant profits and can cost innocent people a large amount of money. 

Ponzi Schemes

Ponzi Schemes in cryptocurrencies turn on investors with false returns. The scheme runs as the beforehand investors are paid with money from new participants. This structure collapses for those who joined these schemes late which results in huge financial loss. Knowledge of the right cryptocurrency terms is important for someone who doesn’t want to fall into such scams. 

Upgrade Scams

Upgrade Scams occur when the investors are falsely sent messages and notifications regarding their wallet or money upgradation. The scammers send false messages to investors that their wallet money needs to be upgraded and for this, the investors pay a huge amount which in turn results in huge losses. To avoid falling into such scams, one needs to make sure that the messages he is following should be from official sources. 

Fake Initial Coin Offerings (ICOs)

ICOs are a type of scam where fraudsters create false currencies for unexisting projects. Scammers persuade investors to buy these by promising them false returns. Once the funds are collected, these scammers vanish. Avoid getting into such scams as these scams can result in huge losses, leaving investors empty-handed. 

Phishing Scams

Phishing Scams are scams where fraudsters send fake emails and messages to investors that mimic legal cryptocurrency platforms. These emails are drafted in a professional manner that makes investors gain trust and they share personal information like passcodes, OTP, login credentials, etc. Avoid getting into such scams by not believing every email you reserve. Believe only official emails. 

Wrap-up (Summary)

As cryptocurrency evolves, the scams will also evolve eventually. Scams are a big cause of an investor’s loss and can demotivate the investor. Everyone should note that not every promise of giving profit is true. Some are false promises that can incur huge losses. Therefore, keep in mind before investing. There are several crash courses, prefer going through them before investing.