Cryptocurrency Scams and How to Dodge Them

Cryptocurrencies are digital currencies that have increased in popularity in the last decade. Cryptocurrencies are used for payment as it has low transaction fees and can be a good investment. It can be gotten from exchanges such as Binance, or it can be mined by people called crypto miners. Wallets are used to keep cryptocurrencies online or offline, on a computer, or on an external drive.

With this payment method comes many investment opportunities and a hub for scammers because of the anonymity connected to it and how easy to steal from anyone around the world and may never be recovered. It’s not a pleasant experience to lose money, especially in the crypto space, and with a bit of knowledge, you can avoid scams.

How to Get Ccryptocurrencies

There are several legit ways to earn cryptocurrency and avoid getting scammed.

1. Buying and selling: This is a highly needed analytical skill. You can buy a coin at a low price and sell higher when the coin price increases. You can do buying and selling privately amongst people or on exchanges.
2. Mining: Cryptocurrencies are already created but must be validated before reaching the market. The validation is done by solving complex math equations. The first person who solves the equation and validates the crypto receives a token of the coin in mining.
3. Airdrops: For a new cryptocurrency o gain popularity, they do airdrops in each the participant performs simple tasks and get a token of the crypto.
4. Investment; Coins are begotten by investing in a coin and earning interest or waiting for a price to soar. A platform like bitcoin rush official website can help manage your investment.

Some Common Scams

People that scam always find better ways to steal money, and with cryptocurrency, there is almost no way of getting it back, so here are a few techniques scammers use

1. Crypto mining: Mining can be very profitable in that, except for your gadgets, you don’t need to put money down to get crypto. You can solve complex mathematical problems to block and be rewarded for it. Some sites claim to help you mine coins if you send them some coins promising ridiculous high rewards. This is simply a scam, and an example of such a site is genesis mining.
2. Initial coin offering: Money is needed to start a cryptocurrency, so an ICO helps the founder raise money. Some of these ICO are fake and only after money. To check if it’s a scam, check the white paper, professionalism of the website, and inquire from an expert about it.
3. Fake wallets: Wallets are created to store cryptocurrencies. Some people make counterfeit wallets in which once your coins are deposited, they will be sent to another account and lost forever. Check the official website, and knowing good wallets and the correct spelling can help against this scam.
4. Social media scam: High-level social media like Facebook, Twitter, Reddit, WhatsApp, etc., are targets for scammers promising high ROI or daily rewards with you sending some coin. Advice is not to deal with people you don’t know outside a trusted exchange.
5. Pump and dump: Pumping is the rapid increase in price and dumping vice versa. People promote certain coins which they have a good number of to increase the price. When people buy, they sell off their share, thereby dumping the price. Research and learning to analyze a coin can save you from this scam.

How to Avoid Scams

1. Treat your crypto wallet the way you do your bank account, don’t give the details out.
2. Do your research and thorough review before invention in a coin
3. Avoid Ponzi and pyramid schemes
4. Be suspicious of free giveaways.

Conclusion

As the saying goes, no risk, no reward but risk cautiously. A website or a scheme promising a 300% daily increase needs to be researched not to get scammed. With proper research, you can know what is real and those trying to take your money.