Cryptocurrencies have recently been on the news as more and more people get involved in trading.
And, as with any new and trending topic, there are scammers who try to take advantage of people’s inexperience and lack of knowledge in an effort to defraud them.
There are many reports of fraud in the cryptocurrency community. These reports cover investors, entrepreneurs and even ICOs. The most common cases of fraud revolve around theft, insolvency, fraud, misinformation and scams.
A cryptocurrency scam is considered fraudulent activity, conducted by those operating with the crypto coin.
The activity is to deceive the investors and criminals to obtain funds of different proportions. It is similar to a Ponzi scheme, whose users can make payments in bitcoin.
If you’re looking for a quick solution to recover your money, then this article is right for you.
Unfortunately, the mainstream media has failed us when it comes to finding a way to protect ourselves against cryptocurrency scams and fraud.
You see, you placed some money into cryptocurrencies but lost it all the next day! This can be very upsetting and many people are looking for a way to recover their lost investment.
Scams are nothing new to the cryptocurrency community and most investors have had to deal with at least a couple of them over the years.
The question is why do people fall for these schemes?
WHY DO PEOPLE FALL FOR CRYPTOCURRENCY SCAMS
Cryptocurrencies are on the rise, but so are cryptocurrency hurtful experiences.
The most common type of scam is fake ICOs that claim to be backed by a real company. They will often guarantee high returns, and say that you can invest with little or no risk.
Some scammers even use celebrities like Floyd Mayweather and Paris Hilton to fool investors into thinking their ICO is legitimate. Investors who fall for these scams usually don’t realize they’ve been cheated until it’s too late, or they don’t understand what happened in the first place.
It’s no secret that the cryptocurrency market is full of rogues . There are many reasons why people fall for cryptocurrency scams, but the most common ones include:
Ignorance. People who have never invested in cryptocurrencies before may not know how to spot a trick or how to protect themselves from them.
Narcissism. Some people feel that it’s their destiny to become rich, and they will do anything in order to make this happen — including investing in a scam.
Greed and desperation. Some people believe that they can make a quick buck by investing in the right cryptocurrency at the right time, so they take risks that could lead them into trouble.
Emotional attachment. When you become emotionally attached to something, it’s easy to lose perspective and make bad decisions based on emotions such as fear or hope rather than logic and reason.
Falling for any form of scam can be really hurtful and so we will have some insights about how to protect yourself from falling into one.
HOW TO PROTECT YOUR SELF AGAINST CRYPTO SCAM
Cryptocurrency rogues are a real and serious threat. The cryptocurrency market is still relatively new, and as it becomes more popular, the number of fraud will likely increase.
To protect yourself from falling for a cryptocurrency fraud, follow these steps:
1. Only invest what you can afford to lose.
2. Do not trust anyone who promises quick profits or tells you that they have a “secret” way to make money with cryptocurrencies. This is probably a lie and it’s best not to trust such claims.
3. Be careful when trading cryptocurrencies on an exchange or through an online platform because they may be hacked by hackers or suffer from other technical problems like cyberattacks or outages that prevent users from accessing their funds (see below).
If you plan on using an exchange to purchase or sell cryptocurrencies, make sure you have a backup plan in case something goes wrong with your funds on that website/platform.
You should also know how much money you have at any given time on each exchange so that if one gets hacked, you don’t lose all your money — just some of it (which is still bad).
4. Do not use social media sites such as Facebook Messenger because there are many scammy pages out.
Ultimately, you need to keep your wits about you when trying to invest in cryptocurrency and blockchain startups. However, if you follow the steps and tips we’ve provided here, you can greatly reduce the chances of being scammed.
In order to protect yourself from falling for cryptocurrency scams like the one detailed above, you can’t be greedy or lazy. The key factors are research, self-control, and analysis of the information at hand.
If you put these factors into play before doing anything else, then you’ll be on the right track to not only staying safe, but also making smart investment decisions that will help you reap some serious rewards in the future.