Due to the ongoing pandemic, quite a large number of individuals have started investing in cryptocurrency as an additional stream of income. Amidst this frenzy to join into the world of crypto, many are caught off guard in a bunch of scams all because they missed out on some red flags.
As an investor puts in their hard-earned money into the crypto game, scammers flock all over the internet just to take advantage of the naiveness and absent-mindedness of some investors. This has left many investors betrayed and disappointed, and unfortunately broke in many circumstances.
Without further ado, let us take a glance at 10 things traders must be aware of cryptocurrency scams.
1. False promises
Many platforms that allow investors to trade on come with promises that at first glance can be quite appealing to one’s eye. At times, the returns and claims that come along are beyond logical yet make the investors so happy. Such sort of guarantees promising massive positive returns is a big red flag one must look out for.
2. Scams target younger adults
The majority of the youth or younger adults are in the crypto game with investing in various cryptocurrencies. According to sources, the investors that are between the ages of 20 and 49 are caught in scams almost 5 times more than the investors in an older age group.
3. Alluring traders via messages
Many scammers tend to send out messages to potential investors either to their accounts or through message boards. These messages entice the investors into a scammer’s trap which is very hard to escape from.
These messages usually offer to invest tips that guarantee high returns or secrets that every beginner in the world of investing must know.
4. False Websites
Many websites may seem to be authentic but are quite shady on reading their contents. The testimonials that they provide may seem attractive and real. At some points, they may even showcase your investment to be a positive one when in fact it is them committing fraud just to get their hands on the investor’s money.
Furthermore, when these scam websites trap investors, they end up asking investors to send in more money. Sadly, the investors get nothing in return except trust issues on whether investing in crypto is really worth it.
5. Hacked Government Agencies
Hacking is something that is on the rise as we progress more into a world filled with technology. Many of these hackers end up hacking government agencies and victimizing investors under a government facade.
The kiosks used for Bitcoin buying and selling, also known as Bitcoin ATM, have these hackers tapped into them. These scammers later pretend to be from the Social Security Administration and end up misusing the details of the investor to their benefit.
6. Confusing investors on the legitimacy of investment
The crypto market is highly volatile. One day it could reap an investor thousands of dollars and the next day could plunge their investment into losses.
This is why an investor needs to know the basics of trading before investing their hard-earned money in the market.
Many agencies tend to give out advice that would be used to their benefit. They tend to trap the investors in the game for a longer period till they are completely depleted of their funds. Beware of agencies that give such shady advice that would cause you more losses than gains.
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7. Social media updates by scammers
Scammers also have the habit of tweeting out updates on what’s going on in the world of cryptocurrency that many times confuse investors. These scammers create importer accounts which are more often than not run by bots or malicious individuals who play with the mind of the viewers.
8. Mobile App Hoax
Many apps are present both on the Google Play Store as well as on the Apple App Store that attracts traders into their trap of downloading them and eventually using them.
The stakeholders usually are alerted whenever such apps are created but a certain amount of chaos is already released before it can be removed from the stores. Many of these apps are usually found on Google play putting Android users at a higher risk.
These false apps can be identified by judging the professionalism that they provide on their apps. For instance, misspellings in the name of the app, imitation of an app name, and strange-looking logo are some red flags that could help one decide the authenticity of the app.
9. Fraud Love interests
Many dating sites as well as stranger chat-up sites end up having a lot of lonely people willing to do anything to find love. Many scammers can be found on these sites and end up getting into a long-distance relationship with investors.
In time, they ask them to gift them cryptocurrency which on receiving they cut off contact with the person who gets scammed.
10. Elon Musk Impersonators
With Elon Musk constantly swaying the cryptocurrency market, many investors are deluded every time they see any content Elon-related.
Due to this fact, many scammers impersonate Elon or state that they work for him. This impersonator ends up advising investors that benefit them including asking the investor to send them cryptocurrency for them to invest on their behalf.
Summing It Up
Investing in cryptocurrency is a very lucrative source of income that almost everyone in the world will be a part of in a few years. To be successful at it, one must be cautious and always have their guard up every time they place their hard-earned more into the market.
Following certain rules and making sure to notice red flags before giving away one’s money is vital. One must make sure to be well-read on the crypto they wish to invest in before they take a leap of faith and hope to procure the best outcome.
We hope the above-mentioned facts would help both old and new traders out in their next investment.