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Cryptocurrency scams are everywhere. Don’t get duped by these 2021’s crypto scams. Learn how to spot the red flags and avoid getting scammed.
2021 Crypto scams.
Fake wallet scams: Fake wallet scams used to rob the funds sent to the addresses. This can happen in both web wallet and mobile app wallets downloaded from iTunes or Google Play store.
Fake ICO’s: Initial Coin offerings (ICO) can be legitimate projects. However, 80% of ICOs have turned to be scams in which high returns are promised.
Fake Exchanges: Cryptocurrency Exchanges that appear out of nowhere and after being active for a few months time, they mysteriously vanish with the funds.
Social media scams: Facebook Groups and Twitter Accounts with misleading information about giveaways and potential cryptocurrency ponzi schemes.
Cloud based mining scams: Cloud-based cryptocurrency mining scams usually ask for people to agree to sign contracts and invest in Bitcoin mining data-centers. It is quite hard to attest these project’s legitimacy.
Malware: Given the number of different software programs needed to interact with the blockchain ecosystem, it is of utmost importance to assure the legitimacy of our sources. The chances of finding malicious software is high.
Cloned websites: Websites that have been entirely cloned to be used as decoy and steal cryptocurrencies and users’ private information. Differences in these site can be as subtle as “m” instead of a “n”. Always check for HTTPS.
Ponzi, Pyramid & Multi-level: Ponzi schemes generate revenue by making the newer investors pay for the compromises taken with the older investors. Pyramid or multi-level marketing schemes are often used in this regard
Email scams: E-mails with fake information. These campaigns are used to collect private data from users. These are known as “phishing”.
Pumps and Dumps: Pumps and dumps are groups that manipulate the market with fake news or high amounts of volume to artificially increase an asset price. Usually, people unwittingly fall for this.
Fake support team: Another type of phishing campaign. these groups pretend to be the support team of a company in order to access private and sensitive information, like wallet password or private keys.
Red flags.
Promise astronomical gains – Always keep in mind: if it sounds too good to be true, then it probably isn’t true. Simply put, always suspect of any project that offers high returns on your investment.
You have to invite more users – Doubt and suspect: when you are asked to invite other users as it is a clear sign that there’s a pyramid, multi-level marketing or Ponzi scheme. Although, keep in mind that affiliate programs are different and always voluntary.
They ask for your private key – Never share your passwords, private keys or security phrases: any person, projects or startup that asks for your passwords, private keys or security phrases are most likely scams.
They have been accused previously – A scam will always be a scam: if a project or startup have been accused of being a scam in the past, be careful, as it is likely that they might be a scam. Do. Your. Own. Research.
Do your own research team – Do not trust. Verify: If the development team’s information isn’t public, it is very possible that this might be a scam. It is of utmost importance to verify that the development team have publicly available LinkedIn and twitter profiles.
You will find how to do your own research over here.
P.A.T.H. Method.
The Path method has been established to attest the legitimacy of projects in the blockchain ecosystem.
Publicity: The first impression is the one that counts.
- Are there full names and faces associated to this project ?
- Are there partnership with other companies ?
- Does the project have any roadmap or working product or is it just an idea ?
Activity: If this project has been abandoned, then it isn’t your time and your money.
- What does people say in social network sites about this coin ? 9facebook, twitter, reddit, etc)
- What is the attitude of these people when you ask them about this coin ?
- Are the developers actively interacting with the community on the issues of the project ?
Technology: Blockchain isn’t the solution to everything
- Is the technology behind this project actually solving a problem ?
- Is there any other crypto that solves this very same problem?
History: You can’t simply learn on the present and forget about the past
- Do they have a clear objective?
- Have they reached any of these objectives ?
- Have they ran into any problems during development stages ?
- Has this coin been through a pump and dump before ?
- Was there any recent changes on the development team’s structure ?
But remember,
Disclaimer: All details found on this post, and more generally on this website (neverfomoagain.com) are for informational purposes only. I don’t provide any financial advices. Please, Do your own research before undertaking to any investment/trading actions.
