The year 2021 was incredibly beneficial for cryptocurrency investors. Bitcoin and Ether (Ethereum), the two major cryptocurrencies, increased in value by 59.8% and 399.2%, respectively, while some of the smaller cryptocurrencies, like SOL (Solana), had gains of more than 11,000%. So, investing in crypto trading can be lucrative in 2022 as well, right? However, there is one common problem, and that is the proper industry knowledge. Without proper knowledge and experience, it is tough to gain success. Therefore, you need to learn the basics. For instance, if you want to learn How To Identify And Trade The Butterfly Harmonic Pattern – Margex is a platform that can help you from scratch. It goes without saying that whether you have previously made cryptocurrency investments or have been considering doing so, it is imperative to become knowledgeable about the most common crypto scams.
To understand how to prevent being another victim of crypto scams, keep reading.
Top Four Most Common Crypto Scams
The crypto space is a wild one, and it is full of scams, schemes, and conmen. However, you do not have to let them steal your money. Here are the four most common crypto scams and how to avoid them:
1. Rug Pulling Scam
You have almost likely seen the “top movers” area if you have ever browsed a cryptocurrency exchange site or downloaded one of the providers’ apps. The best-performing cryptocurrencies are mentioned below, frequently with stunning recent price rises.
However, not all of the coins that are offered on crypto exchanges are genuine. In contrast, those who are not want to take advantage of those who do not want to pass up the chance to make a tidy profit.
2. False Crypto Website
There is no denying the intelligence of con artists. Many of them have been successful in creating nearly identical replicas of trustworthy crypto websites. These fraudulent websites allow you to buy cryptocurrencies, deposit funds, and possibly even withdraw funds. However, the con artists will set the traps as soon as you and other users start to believe in their websites. They will take down their websites and steal every penny from the users.
3. Bitcoin Phishing Scams (ex: Binance, Trust Wallet)
One of the crooks’ preferred methods is cryptocurrency phishing. We continually find innovative and skillful crypto phishing scams that con artists use to part victims from their bitcoin.
Potential victims are most frequently contacted by text message and email when engaging in crypto phishing scams. Although the messages’ contents will vary, they will all include a link or a link concealed behind a button that directs you to a scammer-controlled website.
4. Crypto Giveaways on Social Media by Scammers
Crypto scammers on social media are constantly looking for unsuspecting victims, whether they are posing as trustworthy cryptocurrency businesses or well-known celebrities.
Frequently, they will take control of verified Twitter accounts and post about “crypto giveaways”. The posts feature links that readers click on in the hopes of receiving their free cryptocurrency, but the websites they are actually taken to only intend to steal both their cryptocurrency and personal data.
Keeping Safe: How to Do It
- Avoid making fresh cryptocurrency investments. Do your analysis and stick with well-known, reputable companies.
- Only buy bitcoins from reputable businesses.
- Ignore and delete any messages telling you to send bitcoin or to submit any private information.
- Be extremely wary of social media cryptocurrency freebies. Things that look too good to be true usually are.
- Utilize a scam browser to check and quickly identify cryptocurrency phishing and scam websites.
Final Words
Unfortunately, a degree of scamming is unavoidable when dealing with cryptocurrency. It can be especially frustrating, because it is so easy to accidentally fall victim to one of these scams while minding your own business. However, as long as you know what you are looking for, taking a few simple precautions can make it easy to avoid the most common crypto scams out there.
Scams remain a serious concern in the world of digital currency, but staying informed can significantly reduce your risk. By researching platforms thoroughly, enabling strong security measures, and remaining cautious of overly promising offers, you can protect yourself from most fraud attempts. Building a trustworthy Crypto Business requires transparency, education, and vigilance—so always prioritize safety before investing or trading.
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We, a coffee company in the suburbs of Beverly Hills lost $2.3 million dollars to cryptocurrency investment scam recently. Two years ago when we first started depositing from our Coinbase wallet, we deposited 500,000 usdt and were told that it had reached 1.3 million usdt at which we wanted to withdraw but they asked for another 500,000 usdt for tax on accumulated funds with hope its all going to be added in our refunds. Little did we know that within one month this particular account was hacked and all our money was gone.We were scammed out of $2.3 million by a cryptocurrency investment scam and are very grateful to FASTFUNDSRECOVERY AT PROTONMAIL for helping us recover $1.3 million of our funds. We remain confident that we will have the remaining $1.9 million used by the fraudster in his outsourced wallet back soon, but are very happy with what they have achieved so far and thank them for their hard work.