With advancements in technology and the expansion of our digital world, cryptocurrency has found its way to make the lives of individuals and companies much easier. Cryptocurrency is a rapidly growing payment method that has attracted many people around the world. Cryptocurrency makes it easier to make payments as it does not require any verification from any institutions.
Although convenient and easy to use, there are potential risks associated with using Bitcoin and the many altcoins now available. Several fraudsters and scammers take advantage of the cryptocurrency system, which means that several people fall victim to scams and potentially lose their funds. Here’s what to look out for:
How to avoid being a victim of cryptocurrency scams in 2024
If you’ve already fallen victim to cryptocurrency scams and fraud in 2023, fear not, because with these tips it won’t happen again. When using online platforms, be sure to stay on private networks to prevent others from stealing your login credentials.
Before buying a new crypto, red flags include a poorly written website, incomplete roadmap or white paper, and a team that hasn’t been doxxed. Furthermore, large social media followings can indicate widespread interest in a project—but ensure that the followers are legitimate and not just conflict.
There are some other tips you can use to avoid becoming a victim of crypto scams, which include:
Don’t accept free crypto coins from unknown people or companies Seek experienced guidance from trusted cryptocurrency professionals Make use of legitimate platforms Make it a habit to check the crypto scam list and trends Secure your confidential keys Verify the internet sites link more as once to ensure that they represent the reliable business that they claim to be
What are Cryptocurrency Scams?
Cryptocurrency scams involve scammers or fraudsters who impersonate companies in an attempt to offer fraudulent cryptocurrencies or to persuade you to send your cryptocurrency to some digital wallet.
Joining the crypto world can be quite risky if you are not familiar with the scams and frauds you may be subjected to. The world of cryptocurrency is growing and evolving, and in turn, the scams one encounters often change. This is evident from the rate of cryptocurrency scams which increased by 23% in 2023. There were several trends in the crypto scams for 2023 that all crypto users – novices and experts alike – should know to avoid becoming the next victim.
To avoid being the next target of cryptocurrency scams, here are the different types of cryptocurrency scams, and the top 5 most common:
Phishing
Phishing is a social engineering scam that involves stealing personal information such as login details or credit card numbers. Within the world of cryptocurrency, phishing scams involve targeting information related to virtual wallets.
Giveaway scams
Many people often fall for fraudulent gifts. The gifts tend to look very promising of greater benefit, and people forget the potential risks that can come with such great benefits. Fraudsters can often hide behind the personas of celebrities or well-known crypto influencers or entrepreneurs to successfully scam victims. They make big promises, like providing more crypto through a giveaway.
Extortion schemes
Extortion schemes are characterized by scammers who blackmail crypto users to gain access to their private crypto keys or passwords or their cryptocurrency. The scammers say that they have information that could be detrimental to the character of the user, so they must send these details to them to prevent them from exposing or releasing this information.
Fake romance scams
Online dating apps or websites are the perfect place for scammers to target their next victims. Fraudsters who participate in fake romance scams pose as potential partners and make it appear that they are interested in being in a relationship with individuals. Soon after securing the relationship, they persuade the cryptocurrency user to participate in crypto events or send them their crypto coins or private details.
Large investments or business opportunities
Many people rely on investments to grow their names and have something for themselves, so when a potentially fruitful investment comes along, they want to grab it right away. However, with cryptocurrencies, people must remain vigilant at all times and avoid investment opportunities that promise definite returns.
How to pick up crypto scams
Not all people offering you cryptocurrency are as legit as they say. As established, some are scammers posing as reputable or new businesses or even celebrities. Here are some of the cryptocurrency scam red flags you should look out for:
Inquiries about personal data Unexpected offers Pressure techniques Promises of huge returns with no risk. You will be prompted to download an app to your phone or computer
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
