Common crypto scams and how to spot them immediately?!
In this article, we will discuss some of the most common crypto scams and how to spot them. Cryptocurrencies have become increasingly popular in recent years, with many people investing in them as a means of making money. However, this rise in popularity has also led to an increase in crypto scams. These scams can be difficult to spot, and many people have fallen victim to them, losing their hard-earned money.
- Phishing Scams
Phishing scams are one of the most common types of crypto scams. They involve scammers sending fake emails or messages to people, pretending to be a legitimate company or service. These messages often contain links to fake websites that look identical to the real ones. Once the victims enter their login details or private keys on these bogus websites, the scammers can gain access to their accounts and steal their funds.
To avoid falling victim to phishing scams, it’s important to be cautious when receiving messages from unknown sources. Always double-check the sender’s email address or phone number and never click on suspicious links. Make sure to only access cryptocurrency exchanges or wallets through their official websites or mobile apps.
- Ponzi Schemes
Ponzi schemes are another common type of crypto scam. They involve scammers promising high returns on investments, often through a pyramid scheme structure, for example, SAFUU. The initial investors are paid with the funds of the newer investors, creating a cycle of payments that eventually collapses when there are no more new investors.
To avoid Ponzi schemes, it’s important to be skeptical of any investment opportunities that promise high returns with little to no risk. Always do your research and make sure the company or service is legitimate before investing any money.
- Fake ICOs
Initial Coin Offerings (ICOs) are a popular way for companies to raise funds by issuing new cryptocurrencies. However, scammers often create fake ICOs to steal people’s money. These fake ICOs often use fake whitepapers, fake teams, and fake social media profiles to make themselves appear legitimate.
To avoid investing in a fake ICO, always do your research and make sure that the company or service is legitimate. Check their website, social media profiles, and team members to make sure they are real and not fake.
- Fake Exchanges
Fake exchanges are another common type of crypto scam. These exchanges often have websites that look identical to legitimate ones, but they are designed to steal people’s funds. They may offer attractive trading fees or bonuses to lure people in, but once the victims deposit their funds, they cannot withdraw them.
To avoid fake exchanges, always make sure to use a reputable exchange that is regulated and has a good reputation. Check the exchange’s website, reviews, and social media profiles to make sure it’s legitimate.
- Malware Scams
Malware scams involve scammers infecting people’s computers or smartphones with malware that can steal their private keys or login details. Once the scammers have access to these details, they can steal people’s funds.
To avoid malware scams, it’s important to always use antivirus software and keep your computer or smartphone up to date. Never download suspicious files or click on suspicious links, as these may contain malware.
In conclusion, crypto scams are becoming increasingly common, and it’s important to be aware of them to avoid falling victim. Always be cautious when receiving messages from unknown sources, do your research before investing in any cryptocurrency, and use reputable exchanges and wallets. By following these guidelines, you can protect yourself and your funds from crypto scams.
6. Crypto Influencer Scams
Crypto influencers are well-known figures in the crypto space, shilling different kinds of projects usually on Twitter and Telegram. We might divide them into 4 different categories.
- Bluechip Crypto Influencers (CZ Binance)
- Meme Coin Influencers (Crypto Messiah)
- NFT Influencers (Trevor Jones)
- Fraud Crypto Influencers (Twitter and Telegram pages with fake followers and engagement)
All of these categories have their own versions of scams. You might run into fake accounts of the Bluechip influencers, you might get rugged by your favorite meme coin influencers after they shilled a project to you, and there are countless of fake NFT giveaway Twitter pages.
To avoid getting scammed, the best practices are based on the commonly used phrase “Do Your Own Research”.
- Check the smart contract with free tools (Honeypot.is, Cyberscope.io, and more)
- Check the social media followers and engagement (Many projects use fake followers and engagement)
- Check the Telegram followers and engagement
- Check if the developers are actively working on the project
- Use BSC scan and Ether scan to spot team tokens and fraudulent transfers
- Always check if you are using the original smart contract
- Always check if you are using the original website
The best advice in the crypto space is to trust no one. Always make your decisions after having a deep analysis of a project and never risk too much at one time.
