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Scams in the Cryptocurrency World and How to Avoid them

Scams in the Cryptocurrency World and How to Avoid them

Last updated 29th Jun 2022

Because of the increase in digital currency investments, cryptocurrency scams are also on the rise. Even though blockchain technology powers and protects many cryptocurrencies, scams still occur. Scammers hijack accounts and drain digital wallets.

The interesting truth is that cryptocurrencies are not government regulated, and transactions are irreversible. This means when you send digital currencies to a third party, you cannot cancel or reverse the payment. It will be painful to lose your money in the hands of scammers.

So, how do you keep scammers at bay? Here, you’ll learn about common scams in the crypto world and how to avoid them.

Investment and business opportunity scams

Some scammers will give you unsolicited offers. They will pretend to help you grow your money in exchange for your cryptocurrencies. They will encourage you to bring more people to invest with them. But their main aim is to get a constant flow of people investing to make money.

How do you avoid investment scams?

  • Be cautious of sites or companies promising you unrealistic investment opportunities
  • Do a thorough research of a company before you invest
  • Do not send your cryptocurrencies to an unreliable third party

Impersonation scams

Cybercriminals can pretend to be a trusted source and lure you into completing a digital currency transaction. They can pretend to be credit card providers, banks, or celebrities. They will reach you via email and ask you to complete payment using cryptocurrency.

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When you receive such emails requests for payments, be wary. Remember, we said earlier that the government does not regulate cryptocurrency, and few businesses accept it as a legitimate payment method.

To be on the safe side, make sure that a website’s security is verified before concluding any transactions.

A scammer’s common tactics

This is what most scammers do. They will:

  • Guarantee that you’ll make quick money
  • Promise significant returns in a short time
  • Promise free money in cash or digital currency

Bottom line

Scammers are getting smarter every day. Therefore, conduct extensive research, talk to experts, and liaise with people who are experienced in the crypto world before making an investment. When you do this and follow the above tips, scammers will not get a chance to steal from you.

Walter Akolo

Walter Akolo

Walter is a writer from Nairobi, Kenya. He covers the latest news on the cryptocurrency market and blockchain industry. Walter has a decade of experience as a writer.