How to: Avoid the 4 most common cryptocurrency scams

3 min readJan 6, 2022

As you become more involved with the new digital monetary systems known as cryptocurrencies, you quickly realize that there is danger associated in these transactions. But we’re not talking about market volatility. Scams proliferate on the internet, and cryptocurrency exchanges are no exception. Be aware of the risks of losing your cryptocurrency assets when you contemplate investing in various firms and exchange platforms.

According to experts, while studying digital cryptocurrency organizations and startups, you should go for ones that are blockchain-powered, which means they preserve exact transaction records. Examine their company concepts to evaluate whether they are genuine and solve real-world concerns.

Companies must clarify their digital currency liquidity and initial coin offering (ICO) rules. Genuine individuals should manage the company. If the startup you’re thinking about doesn’t meet some of these requirements, you should reassess your decision.

Here’s a look at some of the most prevalent scams and how to avoid being a victim as you dive into the fascinating world of cryptocurrencies.

Also Read: Reading between the charts

1- Imposter Websites

You might be following a good recommendation from someone with a lot of skill and yet become a victim by accessing a bogus website by accident. There are a surprising amount of websites that have been put up to look like authentic, legitimate startup firms. Think twice if there isn’t a little lock icon suggesting security near the URL bar and no “https” in the site address.

Even though the site looks to be the one you intend to visit, you may be sent to a different payment platform. Assume you click on a link that looks to be from a legitimate site, but the attackers have created a bogus URL with a zero instead of the letter ‘o’ in it. Of course, that platform isn’t guiding you to the crypto investment you’ve been looking into. Enter the URL exactly as it appears in your browser to avoid this. Also, double-check it.

2- Fake Mobile Apps

Scammers also frequently use bogus applications available for download on Google Play and the Apple App Store to defraud cryptocurrency investors. Although stakeholders can typically easily identify and delete fraudulent applications, it doesn’t mean the apps aren’t having an influence on many bottom lines. According to Bitcoin News, thousands of individuals have already downloaded fraudulent crypto apps.

While Android users are more vulnerable, every investor should be aware of the risks. Is there any obvious misspellings in the content or the name of the app? Is the branding unauthentic, with unusual coloring or an incorrect logo? Take note and reconsider downloading.

3- Bad Tweets and Other Social Media Updates

If you follow celebrities and CEOs on social media, you can’t be sure you’re not following impostor accounts. The same may be said for bitcoin, where malicious, mimicking bots proliferate. Don’t take proposals from Twitter or Facebook seriously, especially if the conclusion looks improbable. False accounts are widespread.

If you provide someone on these networks even a little amount of your bitcoin, you will very definitely never be able to recover it. Don’t assume that since other people are responding to the offer, they aren’t bots. You must proceed with considerable caution.

4- Scamming Emails

Even if the email looks to be from a reputable bitcoin group, act with care before spending your digital funds. Is the email same, as well as the logo and branding? Can you confirm that the email address belongs to the company? One of the reasons it is vital to choose a company that employs actual people is the ability to check on this. Ask a coworker if you have any questions regarding an email. In addition, never go to a website by clicking on a link in an email.

Scammers sometimes use ICOs, or initial coin offerings, to steal enormous quantities of money. Don’t fall for these phony email and website offers. Take your time going through the specifics.

Unfortunately, some Internet users can mine or steal bitcoin utilizing unsecured computer platforms in a variety of ways. Before you begin investing in cryptocurrencies, read more about staying safe and protecting yourself in this rapidly evolving business.

Also Read: How to: Patiently wait amidst market dips!

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