Scams: How to avoid getting scammed in crypto

Investment scam

Currently, in all areas of business, there are risks that we cannot foresee. Even cryptocurrency trading is the same. Some actors have used tricks to scam new crypto investors into the market. Their scams are extremely sophisticated and difficult to detect. Therefore, will share some tips about Scams: How to avoid getting scammed in crypto for those who are new to cryptocurrency investing.

There are many types of scams in the cryptocurrency trading market that you need to know

1. Investment scam

If there’s an account that sends you an investment offer with the certainty that “Once in a lifetime investment opportunity,” then you should run in the other direction. They often firmly assert that their company or application is very reputable and gives high returns on investment. 

Investment scam
Investment scam

They will convince you with their sweet words “One time investment opportunity and get rich” if you join their app or company. With that temptation you will feel secure and they will sell their product to you with a sense of urgency and urging you to buy it. And then they will no longer contact you and run away with your money.

Maybe this trick is even more sophisticated when they pretend to be “Investment Managers” asking you to exchange your assets for them to invest to develop your assets. They will set up many requirements on your investment account. You will not be able to access your crypto investment accounts unless you pay their fees.

All of their scams have a plan like the “pyramid” plan. Scammers will convince you to pay them with cryptocurrency to be able to recruit other people into the program they create. They claim that you will earn more when you refer and re-network newcomers to their program just like you. 

They claim that the more you invest, the more profit you get. But then you just get back all the failed promises or they disappear with the money you invested. Another way is for a scam company to launch a new cryptocurrency coin or token. 

They claim that it will solve unmet needs in the market. They will convince you to buy their coin as an investment with a hundred times higher return and then they disappear. The coin based game “quid” is a perfect example of this trick.

Once you make an investment then check out their website to see what they do to protect their customers. Scams often have grammatical and spelling errors that you must watch out for. Look for customer reviews from publicly available sources to verify that they are trustworthy for you to invest in. Searching for company names with “reviews” or “scams” ​​is a great way to start.

This is one of  Scams: How to avoid getting scammed in crypto.

2. Gift giving scam

Exploiting celebrities and public figures who frequently talk about cryptocurrencies through their social media accounts. Scammers will organize fake gift giving activities by posing as celebrities to scam people. Even used that fake account to reply to giveaway posts to make it seem legit. 

This is what happens when hackers hack the social media accounts of celebrities with bogus cryptocurrency promotions. If it seems weird or too good to be true, it’s best to avoid or take precautions and think clearly.

Wanting to identify phishing posts will often include screenshots of the design. Aim to make the gift look real, or share a link (even a QR code) to a website that everyone can access.

Once there, there is a request to verify your wallet address by having to send a payment. So you should never trust gifts that require you to pay a fee. 

If you receive a message on social media or a message from an app that asks for cryptocurrency, you should ignore it. Legitimate companies will never contact you unsolicited to request payment or look up login information.

This is a sophisticated form of fraud detected and shared by Scams: How to avoid getting scammed in crypto.

3. Blackmail scam

Some bad guys will contact you and they claim they are getting some embarrassing information or accusing you. They threaten that if you don’t pay them crypto they will reveal your information.

Blackmail scam
Blackmail scam

To make their trick more convincing, they send you what they collected during the data breach, such as passwords. This is usually all they collect. And their purpose is to make you give in to their demands. 

If this condition occurs, then they are eligible to constitute a crime of extortion and you should report it to the authorities to be dealt with. You should first mark the email as spam. You then report the crime to the cybercrime complaint center and the local government. 

Make sure you run a malware scan on your computer just to be safe. If the crook shows you they have a password you are currently using that password. Change that password immediately wherever it’s in use. Remember, these messages are made to intimidate you. Don’t panic!

4. Loader/ Load up scams

Using a scam is quite brazen when someone asks you for your crypto wallet or credit account information because they need a higher account limit. In return the scammer will exchange part of the proceeds and they say they will make a profit on their investments.

Instead, your crypto is stolen and you’re left with the credit card fraud charges left behind by the fraudsters. The crooks will top up your account with cryptocurrency and then they will take it all. So that you will be responsible for all transactions made with their wallet credentials.

Never give out your login information to a third party, even if they say they can be trusted. If you see this behavior on a legitimate, regulated exchange, report it so they can stop the exchange.

5. Phishing scams

As many as scams, scams get to your email or bank credentials, so are crypto scams. They try to find the keys to open your e-wallets or bank accounts to get your cryptocurrencies. They are often affectionately known as “Tech Support Scams”. That’s because these scammers often pose as tech support to try and get your information.

Often representatives of a fake company claiming to be a legitimate company will contact you and offer to help you manage your cryptocurrency. For the purpose of obtaining information about your account when you provide them with your login information.

Phishing scams
Phishing scams

They may also say that they need to access your computer or other device remotely, or that they want to send crypto to a suspicious wallet. Never give out sensitive information to people contacting you without asking, no matter how persuasive or urgent they may be. If they say they are dealing with a legitimate company. 

Then you need to immediately check that person’s information. Only calls from the help number or email listed on their website are accepted.

6. Cryptocurrency Scam Warning

Scams: How to avoid getting scammed in crypto has a few warnings for investors

If you have come across any of the scams listed above or think you are the victim of a cryptocurrency scam. Please notify the Commodity Futures Trading Commission or file a report with the Securities and Exchange Commission.

You can also report fraud to the platforms people are investing in. For example, you spot an impostor claiming to represent a Bitcoin exchange, you should let that exchange know. that.

All scams, scams. To protect yourself from crypto scams, scams and keep your data safe. 

You must always keep your eyes open. Remember, all legitimate companies do not ask you to deposit money, and you should not send money to individuals who randomly ask you.

Nothing is too good to be true. So if this happens and someone asks you to pay with crypto (gift card or bank transfer). If it’s a scam, report them and ignore any of their announcements.

7. How Investors Protect Their Cryptocurrencies

There are many ways for investors to protect their cryptocurrencies through the article Scam: How to avoid being scammed in crypto with signs

7.1 Cryptocurrency Red Flag

For starters, be aware of common red flags similar to money transfer scams and credit card fraud.

  • Obvious typographical and typographical errors in emails or online posts or any communication
  • Promise to be profitable on your money
  • All contract duties for which you have to hold non-soldable cryptocurrency
  • Impersonating influencers or celebrities
  • Psychological manipulation such as blackmail or threats of blackmail
  • There are virtual plans on major social networks
  • Promise of free money
  • Vague details about the process of investing your money.

7.2 Know when to use an e-wallet

E-wallets, like your physical wallets, also need to be protected from hackers. Need to implement good digital security It is similar to handling large amounts of physical money by placing them in a safe or insured savings account.

If small scale investors can keep crypto on mainstream exchange like Coinbase. However, if you accumulate large amounts of crypto it probably makes more sense to link it to a wallet for safekeeping.

There are two types of cryptocurrency wallets, “hot wallets” and “cold wallets”.

Hot wallets are stored online. They are secure but are more vulnerable to hacks than cold wallets, where you store them offline on a piece of hardware. Cold wallet is like a safe in USB format.

But if you forget your password or lose your device, you may lose access to your cryptocurrency forever.

Read more: What Is a Crypto Wallet? How It Works


Through the article Scams: How to avoid getting scammed in crypto I shared my insights. I hope you will read this article and avoid the scams of the bad guys. Thereby, it is possible to invest wisely and wish successful cryptocurrency investors to bring much profit. Thank you very much for reading this article.

Read more: Things to be aware of when buying cryptos – a trend of high profits nowadays

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