Steemit Crypto Academy Contest / S6W5 - Common Crypto Scams And How To Avoid Them .

^{Cover created on Canva}

---

Introduction

---

Crypto assets are not fiat currencies that we can keep in the bank and live in peace with. It is a digital currency, for which there are chances of being scammed. With the internet revolution, scammers and hackers are coming up with innovative ways to scam. So it is our own responsibility to keep our assets secure. In today's contest i will discuss common crypto scams and how to avoid them.

---

Explain Your Understanding Of Crypto Scam.

---

A crypto scam is a fraud scheme through which people are cheated through digital currencies and others by promising high returns with little or no effort. They are used to lure big investors to get high returns through minimal bricks.

These scams are typically conducted by unscrupulous individuals or organizations that take advantage of people who are not familiar with the system or who are looking to make a quick profit.

Crypto scams may also involve hacking into cryptocurrency exchanges or wallets to steal money or personal information

---

Explain The various Types of crypto Scam

---

With time, scammers are trying new and innovative ways to scam. Below, I discuss some of the processes through which people fall prey to more scams.

Pumping & Dumping:

• In this process, artificial inflation is created in a cryptocurrency. False and misleading information is spread around. Fake news is spread on various social media platforms so that investors see it and invest their assets through influence. Scammers quickly dump it when they see the opportunity.

Fake ICO:

• By launching fake ICO of a cryptocurrency, investors are lured with high returns in a short period of time. These fake initial coins are launched especially for the purpose of scamming.

Pyramid Scheme:

• A pyramid scheme is a very common method of scamming anything. This type of scam involves using the investments of new investors to pay out existing investors, creating a false impression of profitability. In this case, different labels are also given according to the recruitment statistics.
• Users recruit new users here through their referrals in the hope of making more profit. In this scheme, the early users may gain some, but the maximum number of users are the victims of a scam.

Fake wallet:

• Currently, many fake cryptocurrency wallets are visible. These are either websites or applications like other popular wallets. These fake wallets offer various bonuses to entice users to deposit their funds and show the benefits of zero transaction fees. When users provide their private keys and information to these wallets, scammers gain access to the users' funds.

Phishing and 3rd party Links:

• In this way, hackers pose as legitimate project or individuals to steal our personal information or cryptocurrency. Be sure to check the URL of any website before providing your information or funds.

^{Image Source/ Pixabay}

---

How Can We Do In Other To Spot This Types Of Crypto Scams.

---

Scammers know very well that everyone wants to make a quick profit in a short period of time, but no one wants to lose.

Don’t trust "guaranteed returns":

• Be wary of projects that promise guaranteed returns or even "guaranteed profits." Any investment has both profit and loss. And it is never possible to gain without risk . But whoever tells you that if you invest here, you will get 100% guaranteed profit and profit, then it is definitely fake. because no legitimate can ever guarantee in advance whether it will be profitable.

Don’t click unsolicited links:

• Do not click on any kind of spam or suspicious links. Especially phishing starts by spreading these spammy links. Stay alert for phishing scams. Hackers can send you these links in different ways. It may be in your e-mail, in your social media inbox, or on your personal phone number.

Don't invest in someone else's words :

• One should refrain from investing based on the words of others without experience. because scammers work as a team. Scammers especially target those who have little understanding of the project and its fundamentals. It makes people interested in investing by showing alluring temptations in various ways.

^{Image Source/ Pixabay}

---

Have You Ever Be Scammed Before? Or Have A Person That You Know Ever Be Scammed? Explain To Us The Incident.

---

So far, I've never been a victim of a crypto scam. But I remember an incident earlier this year in which I almost fell victim to a scam. A scammer inboxed me with a link to a new wallet, touting its benefits. It was a Play Store link and a decentralized wallet. I research it well and make sure about the legitimacy of the wallet.

But the scammer tried to scam me by luring me with another link. The first time he won my trust was by giving me a legit Play Store link. Then he provided me a link to a third-party site and said if I signed up to connect the site with the wallet, then my wallet funds would increase by 2.5% every day.

Various 3rd party app can be connected to these decentralized wallets. His link looked suspicious to me, so I researched it well and found out it was a phishing link. If a user types his fund password there, then the scammers have access to the wallet. I didn't visit the link and saved myself from the scam.

---

Thank You So Much For Reading My Blog