A Guide On How To Avoid Potential Crypto Scams

Looking to invest in digital assets? Considering the fact that there are thousands of them, it can be difficult to know which of them are legitimate. And with the increase in crypto-related scams, investors are growing wary over whether or not they should pursue trading opportunities in the crypto market. To help you make informed decisions, here’s a guide on avoiding potential crypto scams according to the Federal Trade Commission.

Is It Demanding Payment in Crypto?

Nowadays, scammers are looking for new ways to steal a person’s money, and their latest strategy involves cryptocurrency. The reason why the cryptocurrency is so appealing to scammers is that crypto payments are generally non-reversible.

So, if you pay someone using cryptocurrency, there’s no way to get back the money unless the person sends it back to you. Therefore, if you’re making a purchase using cryptocurrency, learn about the seller’s reputation and do some research before making a payment.

No real business will demand that you send them cryptocurrency in advance. If they’re claiming that it’s a payment for buying something or to protect your money, they’re trying to scam you.

Is It Promising Big Returns and Major Profits?

It’s important that you never trust a person who makes promises about making easy money in the crypto market. If they’re promising big returns, it’s a scam. While crypto trading can be a lucrative way to diversify your portfolio, it’s not a get-rich-quick scheme and requires thorough analysis.

Don’t Trust People On a Dating Site for Crypto Advice

There has been a growing number of crypto scams on dating sites, where scammers become romantically involved with a potential victim and get them to invest in cryptocurrency. So if someone you met on a dating site is asking you to send them cryptocurrency or wants to show you how to invest in digital assets, it’s a scam.

Crypto Investment Scams

A main feature of crypto scams is that they promise major profits with little risk. These scams often originate on online dating platforms or social media websites. Of course, some scammers try to start off with a call, email, or text.

Investment crypto scams make cryptocurrency the method of investment and payment. Some of the most common types include:

• A supposed investment manager calling or messaging you unexpectedly. They’ll promise that you can increase your investments, but the only way to do that is if you purchase cryptocurrency and deposit it in their account. In fact, the website will also be fake, and if you log into your so-called investment account, you can’t withdraw your funds.

• Scammers are now pretending to be online celebrities who can multiply your crypto holdings. Do keep in mind that celebrities wouldn’t contact you via social media. Make sure you don’t click on the links they send or send crypto via a QR code.

• Quite often, crypto scams guarantee big returns but keep in mind that no reasonable crypto investor would make such guarantees. And if they say that it’s a low-risk investment, remember that cryptocurrencies are speculative assets, so there’s nothing low-risk about them. If you see a supposed endorsement or testimonial, know that it’s easy to fake those.

Another major aspect of such scams is that they’re vague with no explanations to back up their big claims. Always remember that regardless of the investment asset, you should know how it works and where your money will go. An honest crypto investment manager would definitely share that information with you. Moreover, they wouldn’t hesitate to back up their strategy with details.

Bottom Line

So before you decide to invest in cryptocurrency, look up the name of the cryptocurrency company, along with words like ‘complaint,’ ‘scam,’ or ‘review.’ This way, you’ll be able to know what other traders are saying about this specific cryptocurrency. And if an investment manager contacts you, look up their name to find out whether or not they’re legit.

The post A Guide On How To Avoid Potential Crypto Scams first appeared on CryptocyNews.com.

from CryptocyNews.com https://www.cryptocynews.com/a-guide-on-how-to-avoid-potential-crypto-scams/
via Bitcoin News
via Bitcoin News Today