Hello, dear Steemians, You are welcome to read @jasminemary post. I hope you're doing very well. I wish you a very happy Christmas and a prosperous New Year ahead. In this post, I have discussed about cryptocurrency scams as part of my entry to the contest organized in the SteemitCryptoAcademy community.
It's no doubt that the cryptocurrency industry is full of scammers, which is why one has to be very careful and carry out research before investing in a crypto project, as some of them are run by scammers. Let's take a look at what I have discussed about crypto scams below.
Explain Your Understanding Of The Crypto Scam
The moment a person starts investing in cryptocurrency, which is a digital asset, it wouldn't take the person long to identify a crypto scam if the person is a good researcher. Scam is a means of defrauding other people of their money in the name of profit, which at the end of the day would become a story where virtually all those that have invested will get to lose their money.
When investing in any crypto business, it is usually advisable for you to carry out your research about the business because you can easily lose your cryptocurrency to scammers who have pretended that the business is legit. Having said that, my understanding of the word "crypto-scam" is that.
A "Crypto Scam" is a fraudulent act that is carried out by a person or group of persons whose business plans are always full of Ponzi schemes, investments, donations, and other forms of criminal activities in order to steal people's cryptocurrencies. In a nutshell, cryptocurrency scams are a process whereby an investor is being defrauded (duped) of his or her cryptocurrency. Crypto scams can come in different forms, which you need to watch out for. Having said this, let us take a look at some of the crypto scams.
Explain the various types of crypto scams.
My dear Steemians, there are several types of crypto scams that are happening both online and offline that you really need to be aware of and take proper precautions to protect your hard-earned cryptocurrencies from. Having said that, my friend, here are some of the crypto scams that you need to avoid.
Email blackmail scams
This is the type of crypto scam where scammers frequently email you about investment opportunities that will change your life, or if you're affluent, they may start threatening you by demanding payment in cryptocurrencies or risk making your personal information public.
Don't do it since your cryptocurrency will be lost forever if you do. You should be aware that if they are legitimate, they will instruct you to transfer money through a bank so that you can potentially see their names.
Social media scam
This type of crypto scam is very common, so please don't give out your cryptocurrency if you read a post or potentially receive a message on social media encouraging you to do so; it's a major fraud. You may occasionally be advised to invest and receive 3X your investment within 45 minutes.
Fake mobile applications
In this type of crypto scam, scammers will create a fake crypto investment app and use the opportunity to collect your Bitcoin or any other cryptocurrency.
Thousands of individuals unknowingly downloaded fake cryptocurrency apps before they realized they were scams. Such applications that make the claim that you can mine bitcoins should be noted by you or any investors.
Websites that are fake or phishing sites
You can be browsing a website under the impression that it is the real thing, but in reality, it is a fake website that has been set up by scammers to steal your crypto and your private key.
If you click on the link that looks like the original website, you will be sent to a website that looks just like the original website. The website will appear to be identical to the original website. For instance, the scammers will substitute the letter O for the letter O. Don't click on a URL if it lacks the "https" protocol.
Giveaway Scam
In what is known as a "giveaway scam," the scammers here claim to equal or multiply the cryptocurrency handed to them. People may send money rapidly in the hopes of receiving an immediate return because this opportunity is supposedly a "once in a lifetime" chance, and as soon as the scammers receive your cryptocurrency, they will block you.
How Can We Do Other Than Spot These Types Of Crypto Scams?
In order to spot a crypto scam, you need to carry out your research by knowing about the crypto project, which is the whitepaper if there is any. Beside knowing about this, you can also spot crypto scams whenever you see or hear the following:
Cryptocurrency investments that promise a guaranteed return: You should know that there's no financial investment that can guarantee future returns since investments can easily fall and rise at any time. In this case, any crypto investment that promises you such a thing is a scam.
Non-existence of a Whitepaper: This is what I have introduced earlier. Every legit crypto investment or project has a whitepaper that states how the cryptocurrency has been designed and how it will work, as well as its management team and several other things. Any cryptocurrency that doesn't have such, you should know that it's a scam.
Unidentified team members: If you can identify the team members of any crypto investment or project, then you should know that it's a scam. Every legit crypto investment or project has team members whose biographies you can easily check, and when you discover the team members, try and carry out your research about them to know their pass.
Promising Free Money: One thing you shouldn't know is that even in Freeland, there is no free money, whether in cryptocurrency or cash. You can spot a crypto scam when any investment opportunity promises you free money and you know that earning the money you are working for is hard, not to mention earning the money you didn't work for.
Have you ever been scammed before? Or Has A Person That You Know Ever Been Scammed? Explain To Us The Incident.
I had never been scammed before via cryptocurrency. Although I have been hearing how people are being scammed through the use of cryptocurrencies, I have a distant friend of mine who was recently scammed from a crypto investment.
The guy went and invested in a platform where they promised to pay 25% interest based on the amount that you invested. The investment required investors to invest in USDT, which their company would then buy a robot that would trade for them. During his first month, he saw the investment as a legit one, went out and invested more money, and accumulated enough interest to make him unable to withdraw both his investment and profits at the end of the day.
How Can One Protect Himself From A Crypto Scam?
This is very simple. If you want to protect yourself from crypto scams, all you have to do is apply the following tips.
Do you research: There are several cryptocurrencies that are not scams, but there are also many that are scams, and if you keep on getting afraid that all are scams, you may end up losing an opportunity. In this case, do your research and find out more about any crypto investment you feel like making.
Protect your wallet: In order to protect your crypto wallet from being scammed, you need a wallet with private keys that you keep to yourself. If any investment scheme should ask you for your private key, then you should know that it's a scam.
Keep an eye on whatever app you download: When you download an app, you should only invest a small amount of money to confirm the legitimacy of the app first. The moment you experience some unusual update on the app, you should be very vigilant.
Download the app from the official platforms: There are a lot of fake apps in the Google Play Store, and if you're not careful, you may end up losing your crypto to scammers via fake apps. This is the reason why it's safer to download apps from the official platforms.
Ignore the cold call: If someone is calling you and telling you about selling or buying crypto, you should be very careful, especially those on social media. To this end, you should never disclose the identity of your wallet to outsiders.
Conclusion
As we are in this festive season, many people are out there looking for a way to scam people out of their hard-earned money, and if you're not vigilant enough, you may end up being a victim. Despite the fact that cryptocurrency is highly volatile and speculative, you should always do your research very well to avoid being scammed.
I am inviting @simonnwigwe, @preye2 and @temitopef
crypto scam is very endemic at this time along with the development of cryptocurrencies which are increasingly widespread and increasing.
Many crypto projects opened up to make most of the scammers take advantage of this. Beginners who don't really understand the crypto world will be their target,... This does not mean that developers and investors can avoid this, in fact they will lose much more than beginners.
We really have to be careful every step we take, and downloading an application on the official website can be a solution.
Good luck for the contest dear... 🤗😘👍
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Sincerely saying crypto scam is making the industry not safe. I appreciate your time here.
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Hi dear friend.
I hope that you will be doing well and enjoying the winter season with great wishes ahead for the next year.
You have explained this post in a very beautiful way and I really the way you have presented the ideas about the crypto scams that are the great possibilities in the crypto space.
Yes friend, this is a very common sign of the crypto scams when the scammers ask us to do something for free crypto assets but its totally nonsense.
We can easily spot these types of scams by using the common sense that how can an unknown identity can offer us such high amount without any cost. So, we can filter out these scammers.
Thanks a lot for your beautiful writing of this post. I wish you a very good luck for the contest ahead.
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Thank you for coming around friend.
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You're welcome 😀
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You have written very well about crypto scams, and various types of crypto scams, one has to be very careful so as not to fall victim. It's a good thing you have never been scammed before because the pain of losing ones hard earned money is not a nice one at all. Good luck with the contest dear.
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Thank you for stopping by friend.
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You have quoted the most important thing that many users are being scammed because if joining the fake giveaways as I remember that scammers tried many times to scam the steemians by allocating fake giveaways and by snatching the keys of steemians.
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I appreciate your support. Thank you so much.
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You are welcome ☺️
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Congratulations! Your post has been upvoted by @steemladies (about all women's activities) Community. Let's grow together with us. Join and subscribe here👇.
Steem For Ladies
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Interesting article you have presented here friend, and I commend your effort. Your explanations were lovely and I learnt from your task.
Scammers usually observe that behavior of Investors to a particular situation, and then strategies a means to make Investors put in their asset somewhere that isn't safe. Basically this scammers work with the emotions of other Investors.
Thanks for sharing and goodluck in this contest.
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