How cryptocurrency scams work

Many of us are familiar and heard about cryptocurrency scams. These scams have caused people to lose millions of dollars. Investing in cryptocurrency is getting popular but one should also be aware of the scams if they do not want to lose their money. Scammers trick the people to send money. These scams can pop up in a lot of ways. They can be in the form of an email to blackmail someone. It can be a referral scheme offered by an online chain or it can be a bogus business opportunity or a bogus investment.

But all these scams have one thing in common. The purpose of a scammer is to convince you to send money. They can also convince you to make a payment with any cryptocurrency. Once you get caught in the scam, you lose your money and you cannot get it back no matter what So, if you see an email, text, message, or even a tweet in which you are asked to pay through Bitcoin or any other cryptocurrency then it is a scam.

There are some other ways which can help you to predict that is it a scam or not. Like, they may guarantee that you can earn money or they will double your money or you can get more free cryptocurrency or money. So, risks are involved in cryptocurrency transactions. Scams are not limited to online sites only. Cryptocurrency exchanged can also be a scam. Before investing in any startup or crypto platform, you must be aware that you may lose your money.

Before investing in any crypto exchange or startups, experts recommend confirming, that they are blockchain-powered. It means they can track detailed data of transactions. Check that their plans solve real-world problems or not. ICO rules should be specified by the company. The company should be run by some real people. If these characteristics are missing, then reconsider your decision of investing.

Now, we will tell you about some scams and how can you avoid them if you want to join the world of cryptocurrency.

1) Imposter websites:

An expert may be guiding you about everything in cryptocurrency, but you can still become a victim of a scam when you visit a fake website. A lot of websites are designed to match the original websites. A small lock should be present before the URL of the website.

They can direct you to a fake URL of another platform for making payments. So make sure you check the URL correctly before making a payment.


2) Fake apps:

Scammers can trick people who are investing in cryptocurrency by developing fake apps that can be downloaded through Apple Store or Google Play for free. These apps can be found by stakeholders. They can also help in removing such apps. Thousands of people may have already downloaded these fake apps to trade in cryptocurrency

3) Social media scams:

You can follow celebrities, but you can be unsure that is that profile 100% original or an imposter. The same can be said in the case of cryptocurrency. Malicious bots are used for impersonation. If you see an offer with an impossible result from Facebook or Twitter, then do not accept it. Fake accounts are present on every social media site. Your one minor mistake can cost you cryptocurrency worth millions of dollars.

If someone demands a tiny amount from your cryptocurrency on these platforms, then you will never get it back. Those who reply to such offers can also be bots. Be aware.


4) Scam Emails:

Some emails may seem legitimate from a cryptocurrency company. Still, try to invest carefully. These emails can be similar to legitimate company emails. Try to verify that is that email legitimate by comparing it with the previous emails you received from the same company. If you cannot confirm it, then do not click the link in the mail instead ask a person from the company for verification



There can be a lot of other ways but these were the most popular cryptocurrency scams that people face