As the popularity of cryptos increase and evolve, it becomes easier to scam users. There are numerous precautions you can take, and whilst it is never possible to be 100% safe from hackers and scammers, you can significantly lower the risk of being scammed.
HOW TO PROTECT YOURSELF:
By using common sense, it can be far easier to avoid a number of these scams. The simple rule to keep in mind: “If it sounds too good to be true, it probably is.”
Here are some of the more common scams to be aware of.
#1: Cloud Mining Services
Cloud mining scam websites look to vitcimize mining community users and noobs. If you’re in the camp of people who would prefer cloud mining to hardware mining, you need to be extra careful in this respect.
#2: Multi-Level Marketing (MLM) Schemes
Use the common aspect of network marketing (also known as direct selling) and exploit the popularity of bitcoin to make a scam. They are full of claims which are exaggerated and make the user feel that he can make money quickly and efficiently, if someone is coming to ensuring you 1000% profits, it’s probably a scam.
#3: Bitcoin Investment Packages (BIPs)
These Are another type of scam. These schemes promise returns, profits and pay out small daily returns until one day all payments stop and the scammer runs off with users’ invested funds. These are all just ponzi schemes. Nothing, is certain in the investment world, so beware of companies who guarantee returns.
#4: Fake ICOs
An established company is less likely to scam you given the fact that they are bound by government regulations. Check the senior management teams social media presence as well as reputable reviews. Do your own research, you can check team profiles in Linkedin for example.
#5: Pump-and-Dump Schemes
These are groups that “pump” unpopular tokens. These groups buy up significant amounts of these coins and ‘pump’ them across numerous social media platforms. Once the token’s value has risen, they dump the token to unsuspecting investors and depart.
Tag a friend and help them keep their funds safe! -
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