How To Notice A Crypto Scam Straight Away

Numerous crypto scams have emerged over the past few years
The biggest tool to avoid scams is the knowledge that you have
If you know how scammers work, you can spot them right away
While some scammers steal personal information from people, others use lies to steal trader’s money

What Types Of Crypto Scams Are Out There?

Crypto trading has become very popular in recent years. There are millions of people who are investing in this market every day. Although popular, it is quite dangerous as well. There are many people who are using the popularity of the cryptocurrency market to scam people, and sometimes, it is a bit hard to avoid scammers. That said, there are ways you can avoid being scammed in the crypto trading market. The best thing to do to make sure that you are staying safe is to understand how different types of scams work. By having enough knowledge of crypto scams, you will be able to spot scammers easily. Thus, you will be able to avoid their services. There are many different types of scammers in the crypto market, but in most cases, they come in several forms. Dozens of new cryptocurrencies are launched each month around the world, and because of this, it might be a little hard to avoid crypto scams. In most cases, there are several tips that you can always keep in mind to avoid being scammed in the market. One of the main giveaways that you are dealing with scammers is when the company or exchange is promising you high returns on small crypto investments. But, this is not all. There are many types of scams in the market which you should be aware of. In this guide, we are going to discuss the most common crypto scams in the market and the ways to avoid them.

ICO Scams

Initial Coin Offerings, simply known as ICOs, are very frequently used by scammers to steal money from people. In fact, this is one of the most common crypto scams in the market. Over the past few years, initial coin offerings have become a popular and alternative means of getting funding for different types of projects. bitcoin scammers

A similar thing had already existed, which is called initial public offerings. However, unlike ICOs, IPOs are governed by strict legal regulations. As for the ICOs, there are little to no regulations. It should not come as a surprise that many have started using ICOs as a way to scam people. In fact, it is estimated that in just 3 years, between 2016 and 2019, as much as $13 billion was raised around the world using ICOs. Although there are some benefits associated with ICOs, there are a lot of risks associated with them. There is a huge chance for ICOs to be scams, in fact, the majority of them turn out to be scammers. However, there are some things that you can do to make sure to avoid ICO scams. Among the easily identifiable signs of crypto scam ICOs are things like: weak websites, the absence of named developers or team members, no clear roadmap, evidence of a pyramid structure, and many others.

Pumps And Dumps

When talking about how to spot a crypto scam, one of the best tips that you can receive is learning more about them. One of the most used scamming methods in the market is the pump and dump scheme, which is not a new thing. It has been used in other markets way before crypto. The main idea behind it is very simple, a person or group will buy a huge amount of cryptos and then thinly trade it. By doing so, the price will increase. As the price increases, the scammers behind it will start to promote the asset. As more people hear about and start buying it, the price will increase further, and many more will join in the hopes of larger future gains. On the other hand, the people who initially were behind the scam will cash out their holdings at a much higher price. As for those who joined the market near the end, they will be stuck with their assets without anyone to buy them. One of the best things that you can do when thinking about how to avoid crypto scams like this is to do extensive research before you decide to invest in anything. If something sounds scratchy or too good to be true, it is better to avoid it.

Phishing Scams

Phishing scams in the crypto market are one of the most common scams around the world. Phishing is a type of social engineering attack which is very frequently used to steal the data of people. This includes the credentials such as credit card numbers, for example. It happens when an attacker shows itself as a trustworthy entity and makes individuals open face emails or messages. This type of scam can have devastating results. As these companies get your information, they can steal your funds without struggling much. There are several ways you can tell that you are getting scammed. In most cases, scammers are using social media, emails, and special websites for phishing. The emails mostly look legit at first, but after reading through them you should be able to tell that it is a scam. In most cases, such scams offer people hard-to-resist awards and prizes, which can be a great sign that you are dealing with a scammer. In general, if something sounds too good to be true, it most probably is and it would be better to avoid it. Also, in many cases, these texts messages and emails look. like they are from a company that you know or trust. They might look like they are from a bank or even a social networking site. It can even be displayed as a payment website or app. Because of this, sometimes, it gets a bit hard to tell that you are getting scammed. It is very important to always focus on little details.

Malware

There are many different ways how crypto scams work. In recent years, the number of malware scams has increased dramatically. In most cases, such crypto scam malware is hidden in different types of downloads, mostly, pirated versions of applications or video games. This malware is automatically installed in your PC when you download it and mines cryptocurrency using the infected systems. There are many different types of malware in the market that are using people's computers for mining. In fact, in many cases, it happens without owners of the computers knowing it and it can be quite damaging. There are some things to avoid this type of scam. The most important thing is to avoid downloading applications or video games from sketchy websites. One of the worst things about this malware is that it tends to be very hard to get rid of. It can infect all of the information on the computer, and you might end up losing a lot of things.

Giveaway Scams

Over the past years, giveaway scams have become one of the biggest and most frequent scams in the market. There are numerous scammers who are promising people different types of rewards if they sign up on their platform. After doing so, the scammers are demanding deposits to receive the gifts. When you make your deposit, you will see that it randomly disappears from your account. In most cases, there is not much that traders can do about it. Although very common, this type of scam is probably one of the easiest to avoid. One thing that can help you is to learn more about the crypto trading market and the things that are common for it. Once you kno