Nowadays, cryptocurrency scams are rocketing due to the irresponsibility and greed of the peoples, especially who are new in this field.
In this article, we will go through the scams and some helpful tips to avoid them. So now let’s take a deep dive into the top 5 dangerous cryptocurrency scams.
Top 9 Cryptocurrency Scams
Cryptocurrency is making the whole world decentralized. But these scams are very bad for the cryptocurrency industry, because once the money or cryptocurrency is send the is no reversal.
So it is very important to identify and tackle these scams.
This is one of the common scams. In the ICO’s companies sell some tokens at a fixed price before the launch of the cryptocurrency. This makes a simple way for scammers to enter this section. They will launch a website and start the ICO. After completion of ICO, they just disappear.
Here is the list of some ICO scams.
Before investing in any of the ICO main things you should have a look at the team members and their social accounts. If the project is legit, the members will surely mention it in their social accounts. You must also check that do they have any experience in the field of Blockchain and cryptocurrency.
This scam is increasing day by day. These are the websites that promises to help you in mining bitcoins or any other coins. They will have some investment plans that will allow you to mine more coins.
Most of the sites work well till 30-60 days. Afterward, they will not allow you to withdraw your earnings or they will directly block your account.
The only way to avoid this type of scam there is only one simple trick. Don’t invest in any cloud mining service.
Bitcoin Generator Scams
This is quite a new type of scam. This site claims to generate a huge amount of bitcoins for you by hacking the bitcoin network or by doing the mining. They will fill greediness in the mind of the people and scam them. Now the website will show you that you have successfully generated 0.5 or 1 bitcoin in just a matter of time.
A pop up will appear asking for mining fees or withdrawal fees. Generally, the fees are small to make people think that the website is genuine. It is around $10 – $20. Once you pay the fees, BOOOM, you are scammed.
The simplest method to tackle this situation is just smart thinking. Just imagine why would a website pay you 1 bitcoin or even 0.5 bitcoin for just giving them $10 – $20. Would you pay anyone 1 bitcoin for $10? Haha! Definitely not.
Bitcoin Doubler Scams or HYIPS
This cryptocurrency scam is again related to greediness. The website claims to double your bitcoins or any other coins in just 24 hours. Generally, these websites works for 30-60 days.
The main idea behind the scenes looks like the following:
- The website is newly launched and Raju has camed across the website.
- Raju invest 0.01 BTC with greediness of doubling his bitcoins.
- Now Shyam also came across the same website. He invested 1 bitcoin thinking that he will receive 2 BTC after 24 hours.
- The website now owns 2.01 bitcoins. So it will pay 0.02 BTC to Raju after 24 hours.
- Baburao comes across the website and invests 2 bitcoins.
- Now Shyam will be paid 2 BTC after 24 hours.
- The chain continues and the website pays for some period.
- After some period if new peoples don’t join the website, they will turn into the scam as they have no money to give to the peoples.
Although it is good to invest in this type of websites if they have just started. But still, we don’t advise any of our users to invest in this type of website. If you are a risk-taker than you can invest in this type of website for 1 time when the website is newly launched.
PTC Websites Scams
These are the websites that pays you some bitcoins for viewing ads. It is relatively easy to identify this type of scams.
If the website claims you to pay 100 or 300 satoshis for each click, then mark my words they are scammers. In addition you should never buy a plans that these PTC websites offer you to earn more bitcoins.
They will have some strict conditions to withdraw. For example you need to have atleast 10 referrals or you should buy a pro plan to withdraw, etc.
This is the brand new scam that I have come across. As you already know that you can swap your Bitcoins for Ethereum or vice-versa. There are some genuine websites like Changelly, Blockchain.com, etc. that allow you to swap bitcoins for Ethereum and vice-versa.
The scam websites will claim to swap you coins but they will have extra coins for using their website. For example, let’s say that 1 BTC = 60 ETH in the current scenario. If you send them 1 BTC they will claim that they will send you 70-80 ETH or even more.
Again greediness comes into the way. One of the simplest way to avoid this type of scams is that use genuine website like Changelly or Bockchain.com.
Cryptocurrency Wallet and Exchanges Scams
This type of scams is specially targeted for beginners in this field. Scammers make a look-alike website of some of the biggest know exchanges or cryptocurrency wallets.
For example a scammer can easily make a copy of the Blockchain website. It will have same logo, same interface, same design, etc. The only thing that remains different is the URL.
Yes you can identify any website by the URL. You should know the URL of the genuine website. If a scammer makes a copy website of Blockchain.com, he/she will name it as Block-chain.com. This can look pretty genuine for beginners.
So check the URL first before creating an account in any exchange or cryptocurrency wallets.
Youtube Giveaway Scams
This is a updated scam nowadays. The trick is short and simple but too dangerous. The scammers made a fake channel and put the photo of any big person who is related to crypto industry. They generally have a live session where 2 well known entities of crypto industry are talking.
The description consists of a giveaway. You need to send X number of bitcoins and they will send you double amount of bitcoins instantly or after 24 hours.
Be aware of this scam, because the conversation in addition with description look 100% real. Don’t send your bitcoins to anyone.
Malware or Apps Scams
This is the most common way of scamming. You click some auspicious link that secretely download app or malware into your device which tracks your information and steals you cryptocurrency.
There is nothing more to talk about this scam as it is too common, but at the same time is too dangerous.
So don’t click on any auspicious links send by any person.
Tips to Avoid Cryptocurrency Scams
Now that we have looked at all the cryptocurrency scams it is time to look at the some of the common ways to tackle scams.
- Check the URL of the website before creating an account in the cryptocurrency wallet or cryptocurrency exchange.
- Have a very strong password along with 2FA in exchanges and wallets.
- Before investing in any plans anywhere check the history of the website.
- Don’t become greedy at any cause.
- Invest smartly in ICO, don’t invest the money you can’t afford to lose. Check the team behind the project and check the social media accounts of all the members. If they guarantee something just go away from that ICO.
- Don’t click on random links sent to you by an unknown person.
- If you want to invest in any mining websites or PTC sites just go to GOOGLE and type ” Name of Website + Reviews or Legit or scam. You will get the reviews. If you don’t get any reviews don’t invest. Be aware of fake reviews also.
So that’s it. I hope you have not fallen in any of the scams before and will not fall into the scams in the future too.