As cryptocurrency becomes more mainstream among investors, cryptocurrency scams are also getting more common which results in a lot of security issues and unsuspecting victims. For beginners, learning what they are and spotting the red flags can help you spot them from a mile away. Are you curious to know more? Learn about the common schemes in the digital world and find out how you can avoid them here at Casino Days India.
The different types of cryptocurrency scams
The complex nature of digital assets is one of the reasons why people fall prey to schemes, however, there are ways new investors like you can spot these scams once they happen.
To avoid being victimized, here are some deceptive crypto tricks you should know and how to spot them:
Scammer emails posing as authoritative figures
Be wary of emails on solicitation of payments through cryptocurrency because this is an obvious scam from the get-go. Firstly, no authority like the government or companies would ever ask for payment through email, let alone in the form of virtual currencies.
Scams masking as ‘business opportunities’
Scammers and frauds will sell you the idea that you can earn a lot of money when you invest in a particular crypto coin. An example of this is the pump and dump scheme where scammers hype a new coin and run away with the profit once the market fluctuates and its price crashes.
If you’ve been approached by people guaranteeing you can profit big in cryptocurrency, don’t engage in any transaction with them. People overextending their promises of unrealistic returns you can earn with cryptocurrency is the most obvious sign of a scam. With cryptocurrency’s volatile market, not even experts can guarantee any coin’s future performance.
There’s no such thing as an easy investment where you can get a ton of returns quickly. When you are promised something that’s too good to be true, it probably is.
Additionally, there are many fake ICO events out there that will promise you quick profits but on investments that never come to fruition. Investing in such events will get you hoodwinked into losing your money faster than earning the returns they promised you.
While there are profitable rising cryptocurrencies out there, a promise of yielding an unrealistic number of returns in a short period just about blows its cover.
When investing, always keep in mind that there are high-risk and low-risk investments. Rarely is there an investment—let alone cryptocurrency which plays in a volatile market—that yields a low-risk and high return.
Scams promoted by ‘social media cryptocurrency experts’
In the world of cryptocurrency, there are many ‘gurus’ who claim they have the knowledge that will help grow your fortune through crypto investments.
These fake gurus show off their lavish lifestyles on social media to build a reputation and following that will make you believe their methods work in real life. In reality, they rarely deliver on their promises and this is just a front to make susceptible investors make unwise decisions that can cost their investments.
The most common method these ‘experts’ use to scam is selling a highly unregulated cryptocurrency from an unknown and uncertified website.
Fake crypto apps
Fake crypto apps are one of the hardest scams to avoid because some crypto apps can look legit. It’s hard to check for legitimacy in app stores, and people who want to start investing in cryptocurrency can easily get scammed by these apps.
The scheme works when you download an app and deposit money into the software. Before you know it, your investment has been taken off the platform. On top of that, you are forced to pay in-app purchases that don’t merit anything.
The most commonly reported apps where investors have been scammed are MineBit Pro, BitFunds, and Daily Bitcoin Rewards.
The best way to spot a fake app is by looking at testimonies and reviews from people who have used and experienced the said app first hand. However, remain vigilant as fake comments and reviews that are tailored to favour the app can still happen. The more reviews you can find, the more reliable these opinions are.
Most of these fake crypto apps promise high-earning crypto investments or crypto mining services that aim to steal your assets.
How to avoid cryptocurrency scams
The best way to avoid cryptocurrency scams is to research more on cryptocurrency and any investments you’ll delve into. This includes being well informed on which coins and apps are sketchy and untrustworthy so you can avoid disastrous transactions.
Being updated on the different crypto schemes in the market will also help you maintain quality investments for the future.
Moreover, when investing in a new cryptocurrency, it’s better to study its whitepaper and form your own opinions on its prospects than depending on the hype surrounding it.
The best defence against scams is factual information and caution. Always be cautious about any information you encounter on the internet. It’s more ideal that you conduct your research instead of relying on the information given to you by any investor or company. Cross-check what you’ve found from what was said to you and highlight any inconsistencies.
Additionally, run a background check on the people involved before saying ‘yes’ to any proposition. Scammers hide in anonymity and the more unresponsive and dodgy their customer service is on the company’s information as well as on their withdrawal and deposit options, the more caution you should exert.
Enjoy your gaming experience safely in Casino Days India!
Now that you know the different cryptocurrency scams out there, you can avoid investing in shady websites and platforms by doing research and familiarizing yourself with how digital assets work.
Here at Casino Days India, you can find more information on cryptocurrency and casino gaming when you browse the site.