5 Most Common Cryptocurrency Scams You need to avoid

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The risks are always involved in online transactions and cryptocurrency is no exception. You can easily get scammed online if you are not careful. Therefore, if you want to prevent getting scammed, you need to go through every detail of your investing platform. The most crucial factor that you should never ignore is that the startup is powered by blockchain or not. In addition to the technical things, you can also check out the business plan. A scammer won’t make a good business plan, except for some of them.

Besides the business plan, several other factors are involved in online scams. You need to try your best to avoid getting scammed. Therefore, we provide you with a list of mistakes that people usually make while working with cryptocurrency. Visit bitcoinfuture.app if you want to join the future of cryptocurrency.

Common mistakes

1. Fake mobile applications

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Creating fake applications is not much of an effort. Therefore, one of the most common types of scam is through these fake applications. Most of the users get confused between the original and counterfeit applications. Although the stakeholders identify these fake apps and get rid of them, they still get downloaded multiple times.

According to the reports from “Bitcoin News,” thousands of users download the fake applications. Therefore, this issue needs some serious consideration. So, if you are getting into cryptocurrency and Bitcoin, be aware of the fake apps.

So how will you check the authenticity of the application? It is not that tough. You should look for the original logo’s color scheme and the one you are looking for in the play store. You can also look for misspellings. Fake ones have some spelling mistakes in the name or the app design. Therefore, before downloading the application, look for all these factors.

2. Giveaway scams

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Have you ever seen the giveaway posts and tweets? You must have. But don’t fall for the trick. No one is so generous to give away his hard-earned money. So whether it is some social media influencers or crypto companies, look for their authenticity.

Instead of free giveaways, there is also a trend of asking for a short amount. Initially, they will ask for 1 BTC in return for 10 times this price. But that’s the scam. They get a lot through such single sums. Therefore, if someone is asking for money before giving the gift, don’t fall for it.

Another type of social media scam is through scam messages. You will get a message that you have won a significant amount of money. To get that prize, you need to send them some minute amount first.

If you have won the prize from an authentic site or person, they won’t ask you for money. Moreover, you will have to identify the real from fake ones. It is relatively easy to do so on social media platforms. You can look for the comment section and previous posts. A lot of people who get scammed comment about their originality. Therefore, never fall for such ill tricks.

3. Ponzi schemes

Ponzi scheme is about investment in a particular project. Moreover, they state that the profit is guaranteed. And how is that possible? How can someone tell you beforehand that you will get the profit from the investment? They usually disguise themselves as management services. They will get 1 % from you and will return 10 time the amount. Thus, you will increase your investment and get into their trap.

What happens here is that many people send them money and send them a greater amount gradually. Thus, they are not investing their own money. Instead of that, they are sending you the money of other investors. All of this scheme is made to trap you in their play. Once you get trapped, they will ask for a greater amount or you will willingly send more amount to them. Afterward, they will disappear with all of the investors’ money.

4. Pyramid schemes

The pyramid scheme is about getting involved with more and more people. For instance, a person starts some work and will hire 2 more people under him. He will provide them with a commission for every person they bring. All of these people will invest a certain amount of money. At first, the organizer will pay them will monthly profit. Thus, they gather more of their friends in it. Afterward, when the pyramid gets enormous and the organizer can get a lot of money, he will run away.

5. Phishing

Phishing has already been a common thing in our offline world. Therefore, most of you will already be aware of it. But when you come into something new, you are not aware of a lot of things. The scammers make use of your limited knowledge and scam you.

For example, you have just started working with Bitcoin and cryptocurrency. One day you get a call that “we are speaking from the “ABC” company. They already know which platform you are using because they have your name and contact info. Thus, they will ask you for your account information. Of course, all of this will not be that direct and they will need only some information. You might not notice and provide them the things that you shouldn’t.

Another factor that gets involved here is that they might ask you to click on a certain link. They will say that your account has been tampered with and you need to do some verification. Thus, you will fall into their trap. As soon as you click on the given link, your account info will be sent to them. As a result, they will get access to your account and transfer the amount to their account.

In addition to this, another trick that they play is that they will ask only for the basic account info. This is to send you some code. After you tell them the code, they will recover your account and will have complete access to that. Therefore, never get in such traps. Even if you get such a call, contact your service provider but never tell your account details in a call.