Welcome to the world of cryptocurrency! Although the blockchain is an immutable ledger that records all the transactions that have taken place on a network, scammers still manage to profit off of it. Whether you’re a new trader or have been involved in the space for a while, it’s important to be aware of these scams so that you can protect yourself and your money.
Keep reading for tips to spot a crypto scammer from the very first interaction!
Fake App Developers
One of the most common crypto scams is fake crypto apps. Unethical programmers write these apps with the sole purpose of stealing cryptocurrency from unsuspecting users. Here’s how you can tell whether an app is real.
First, look at the name and developer name of the app. If it seems suspicious, do a quick Google search to confirm that this is the app you’re looking for. It’s not uncommon for newbies to get scammed with crypto apps that are copycats of another.
Market Manipulators
Market manipulation is a real problem in the cryptocurrency world. It’s the act of artificially affecting the price of a coin by using false information, spreading doubt, or conspiring with others.
Some scammers will load up on a crypto coin and use that increased demand to sell the coin at an inflated price. In the crypto space, this is called a “pump and dump.” It’s illegal in all countries where cryptocurrencies are traded.
If you want to get ahead of these scammers, you’ll need to beat them to the sale. Learn how to buy Matic so your trades can move even faster with a lower transaction fee.
ICO Investment Frauds
ICO scammers are easy to spot but often very sophisticated. Signals of this scam are often subtle, such as:
- Inactive crypto community
- No information about the project or team members
- No independent reviews or third-party reports verifying the legitimacy of the project or its technology
- No financial statements backing up claims about how much money the project has and where it went
None of these signals is 100% right, but if you see more than one, it’s a good idea to do more research.
Wallet Scammers
Your 12-word phrase is the only thing that can access your wallet and send cryptocurrency. If someone were to get their hands on it, they could take all of your money in an instant.
Therefore, first on the list of the crypto scammer, red flag is someone who asks for your seed phrase. Even if they are a friend or relative, don’t give it to them!
Spot Crypto Scammer Red Flags
The world of crypto is a wild one, and while it can be an exciting time to get involved, it also comes with its share of dangers. Avoiding a crypto scammer requires some knowledge of how they work, but you should also be taking sensible security measures like using strong passwords on your wallet.
You can learn even more ways to protect your finances from our other posts. Check out their advice for foolproof ways to maintain your online security.
