Tips To Avoid Cryptocurrency Scams

Unless you have been hiding away you will be aware of the rise in cryptocurrency, started off with the metoric rise in Bitcoin that went from less than $500 a coin to nearly 20,000 in less than 18 months. With this many new cryptocurrency types were born and gained popularity. With all the money currently invested in the industry there are also scams appearing faster than they are spotted.

Common Scams

Fake Earnings Systems – This happens when the there is a promise of amazing earnings through investment, however there is no proof of this, this is just a scam.  promises of massive earnings through a unique system involving cryptocurrency. Ponzi Schemes – One of the most popular forms of cryptocurrency scams is simply a Ponzi scheme. People are promised massive returns on investments, however the money is simply used to fund the initial investors. This creates a pyramid and the losers are new investors. This is just a scam.
Cyber-Theft – One of the downfalls or negative aspects with cryptocurrency is the anonimity that it has. With this if someone steals your crytocurrency for your online/offline wallet then you have virtually no chance of getting it back. There has been many reports of cyber theft from victims, often costing millions of dollars. Even companies which own the wallets have been caught stealing from customers.  Look at this most recent scam from Giza

What To Do To Not Be a Victim

There are some things that you can do in order to prevent yourself from being a cryptocurrency scam victim:

  1. Research Different Websites –  THe first thing we recommend you to do is to read and do research on any service that you are interested in.  Ensure that the website is not affiliated with the company. many scams have invested in paid promotions and they are difficult to spot unless you look at the finer details. You want more than one source and advice so try to choose trusted websites.
  2. More Research – If you think you have researched enough in the company then research some more. Check the credentials of the service or currency and make sure they are who they say they are.
  3. Follow Instinct– As the saying goes, if it sounds too good to be true then it probably is and avoid at all costs. There are some amazing companies involved in the industry so use a trusted one.

Author: Nicole's Nickels

Nicole's Nickels aims to give you the best in personal tips to help you get control of your finances.

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