How to Spot obvious Scams in Crypto

in scam •  8 years ago 

Many new people are flowing into crypto thanks to the Bitcoin price as of late... Here's how to spot the obvious scams that want your money by promising unbelievable returns.

1. If it's too good to be true... it is!

I Picked the most obvious example of Ponzi/Scam I could find, they don't even try to hide it.

130% after one day - sounds incredibly good, right? Yeah, it's a scam.

For example Coca Cola pays out ~4% in dividends !! per year !!

Scam.

While this is a real world example, returns in crypto are usually higher, due to the high risk factor.

2. Who is in charge of your investment?

This is yet another obvious sign. If an investment website uses Whois guard to hide the identities behind the domain - it's a scam.

Example:

Scam.

3. Company registered in UK

This is to give the Scam pseudo legitimization.

Opening a LTD cost you like $20 in the UK, along with a cheap shell company.

Scam.

5. Check the Terms

Are there any real names? Can you google their Business Address?

In this case, they did not even bother to add a fake address or anything.

Not every scam is as obvious as this one, but always do due diligence and don't let greed take over.

If you decide to put money in something like this, treat it like a lottery ticket and do not invest more than you can afford to lose.



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Very good, @ash. In general, with blockchain decentralized cryptocurrencies, anyone who asks you to send him the money and he will return it multiplied, is a scammer.

absolutely, but many don't get this.

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I don't think you even need to check anything as long as all things crypto-related are 99% scam

Er, probably not.

ok, 98%. is that number ok with you?

There will be some scams, but there are lots of people pushing the technology. It's a new frontier. Do you believe in Steem?

They will always find a few suckers. People are greedy and will be tempted.

How do these incorporated entities not get their stuff raided and confiscated after the first wave of people are scammed? Surely fraud is illegal, doubly so if they were using identity fraud to keep the ball rolling.

Are these guys somehow managing to avoid getting implicated all the while harvesting the lowest hanging fruits? Sounds complicated.

This is good info. Every investment opportunity sounds great. Very few actually perform in the long run.