Crypto Scams: How to Avoid Them

Cryptocurrencies are like the Wild West exciting, but full of dangers. We can't deny the fact that the Crypto world has evolved over the last two decades. A lot of exposure and a lot of massive adoption of the Crypto space around the aspect of the world that has taken place. The world of Cryptocurrency has gained a lot of visibility as compared to before and this can't be denied. As far as we are seeing the Crypto space growing massively, we should expect an increase in scams also taking place in the space.

Many scammers only want to steal your money. They are there to defraud you of your funds in diverse dubious ways. At one point we have fallen to their trap and the truth is more we still fall into the trap of Crypto scams. Till now I can't forget my first experience when I encountered the Crypto scam with a fraudster where I was defrauded of a huge amount of money. Till now, I still feel the pain even if it has been years ago.

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Someone will ask me, what are those crypto scams I am talking about? They are many and they come in diverse ways we don't imagine at times. I believe many of us might have heard about the Ponzi schemes before. Yes, these types of examples of scams promise high returns on investment, but they just pay off old investors with new investors' money. Eventually, the scheme collapses and everyone loses money. Don't invest in any project that guarantees high returns. The truth is a lot of us fall victim to the Ponzi scheme because of our desperation to quickly make money and because of our greed. This has been one of the reasons why a lot fall victim the the Ponzi scheme.

Crypto scams like I said earlier come in different ways it comes. Now I believe many of us is aware of something called the ICOs, it is a pity that there are Fake ICOs and token sales out there. ICOs and token sales work in a way that they are a way for new crypto projects to raise money. But scammers also create fake ICOs and tokens. They make fake websites and promise big things, but they just want to steal your money. Only invest in projects with a good team and a clear plan.

There is also something called the Phishing scams. A lot of fraudsters make use of these Phishing scams in the crypto space to get access to people through hacking of their keys. Phishing scams try to trick you into giving them your private keys or wallet information. They often send fake emails or text messages that look like they're from a real company. That is why it is necessary for you to be careful about what links you click on and what information you give out, use trusted browsers and always lookout to see if the padlock icon on the left of the webpage name is there.

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If you are a lover of Shitcoins or probably you have had experience with Shitcoins, you should be familiar with something called the Pump and dump schemes. These scams involve a group of people who buy a lot of a certain cryptocurrency. Then, they spread rumours about the coin and drove up the price. When the price is high, they sell their coins and make a lot of money. Everyone else loses money. Don't chase quick profits. Research the coin before you buy it. I once had an experience with this and I lost close to $50, it might not look much to some of us but then, it was pretty much when I remembered what I needed to do and the sacrifice I needed to make to save the $50 only to be defrauded by some sort of pump and dump scheme. Quite painful then.

Scammers most especially in the Crypto space may try to trick you into giving them your money by pretending to be someone you trust. They may also try to manipulate you emotionally. Be careful who you share your personal information with. Stranger danger should be your watch word. I believe many of us have heard of Centralised and decentralized Exchanges, the truth is even with both of them, there is something called unregulated Exchanges and a lot of scammers make use of this continuously to scam people. Some cryptocurrency exchanges are not regulated. This means that they may not be safe or secure. Some pay influencers and media pages to promote them and make them look legit, Only use exchanges that have a good reputation and check if they have approved business licences.

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You may come across airdrop competitions that require you to do a minimal task, such as joining a group or sharing a link on your account. After you comply, they tell you that you have won an insane amount of coins, but you need to pay a gas fee to a personal crypto wallet to claim your airdrop. Always run when you see this type of airdrop. Only participate in airdrops from the official crypto account.

As I conclude, it is not enough for you to know what the types and various forms of Crypto scams are but also for you to know how to avoid them. If you are the type that always jumps to any investment opportunities that come, you might soon fall into the trap of Crypto scams. Be sceptical of any investment that promises high returns with little risk. You need to do your research before investing in any project.

Be very careful in giving out your private keys. Don't give out your private keys or wallet information to anyone. Use reputable wallets and exchanges. Be careful about what links you click on and what information you give out. By following these tips, you can help protect yourself from crypto scams.

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