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Cryptocurrency Scams and How to avoid them

 Cryptocurrency Scams

Your guide to stay safe in the Crypto-World

Investing in cryptocurrency has always been a field with risks. In only 2020 nearly 7,000 people reported a loss of approximately $80 million to cryptocurrency scams. Such incidents makes people look at all of cryptocurrency suspiciously. Many even ask is Cryptocurrency itself a scam. To that I’d like to say cryptocurrency is still an early stage technology. It’s an uncharted territory and  currently doesn’t have enough history on it for us to learn from. There is a definite risk, Yes, but that’s because the market and rates are highly volatile. If getting scammed here is easy then avoiding those scams is just as simple.

I shall talk about the biggest most successful Cryptocurrency scams in history and also a few latest one’s. But that’s not all. We understand how precious hard earned money is. So we shall educate you upon how not to fall prey to such scams and frauds. Today everyone is on the look out for a good investment that would bring in some extra earnings. Cryptocurrency for sure is one way to do that. I bet the current Bitcoin prices makes you regret not investing in it 10 years ago. But it’s never too late as there are new coins flooding the market each day. With over 4,000 coin currently floating in the market there are bound to be some scammers and hackers after your cryptocurrency.

Recent Cryptocurrency scams

Less than a week ago Haryana police arrested 4 for conning people in the name of online business involving bitcoin transactions. Whereas in reality they used the name of Binance and had dummy bitcoins in their wallet. They had lured a bunch of people saying they would invest the money in bitcoins on their behalf. A while ago Elon Musk impersonators had stolen more than $2 million in cryptocurrency scams. They claimed that Musk, one of the richest men on the planet was going to double peoples bitcoins. One man lost $560,000 in this bitcoin scam. NFT scams are just as popular as NFT’s. Replica NFT stores are conning people into buying fake art. The AltCoin pump and dump has duped people of $13 million.

The aforementioned scams are quite recent but nothing compared to the one’s I’m going to talk about next. Even in the very beginning the crypto hype was at it’s peak and many wanted to jump on this train. Seeing the growing number potential investors and lack of knowledge on how it worked, we witnessed many cryptocurrency scams.

The biggest Cryptocurrency scams in History

BITCONNECT-  With nothing more than a name and a basic working project they had no whitepaper, no track record and an anonymous team still they managed to raise half a million dollars. They had promised a return of 480% per annum with zero financial losses. There was a 92% BCC price crash making it the largest coin value collapse till date.

PlexCoin-  Dominic Lacroix, in 2017 launched  a new cryptocurrency. It had features like plex wallet, plex bank and plex card along with a 1354% return in 29 days. They raised $15 million by coning thousands of investors. Locroix was made to transfer $3 million back to the victims.

OneCoin- In 2015, Dr. Ruja Ignatoua had raised $30 million in the name of OneCoin. Investors in many countries from Britain to Kazakhstan fell prey to this ponzi scheme. After scrutinizing investigations they were declared frauds and the founder herself became the first one to jump ship.

Centra Tech- This was a regular project offering a crypto debit card. Supported by celebrities like DJ Khaled and Floyd Mayweather on social media platforms they raised $32 millions but this only lasted until they received a cease and desist order. Denying any partnership with Visa and Master Card  followed by the coin price crash and the arrest if all three co-founders.

PinCoin and iFAN- The most successful cryptocurrency scam in 2018. They had a thoroughly written whitepaper and a promising track record along with a 48% return per month. They raised $660 million in their coin crowd sale. After the success of the first, they launched a second crowd sale under the name of iFAN. This was a social network token for celebs but soon the company behind this disappeared and the seven creators fleeing the country.

How to avoid getting scammed

After all this talk on scams and fraudulence I shall further enlighten you on how to avoid them. A market worth over $200 million has been lucrative to investors and frauds alike. Given below are tips to protect your cryptocurrency from scammers and hackers. One should always keep in mind every coin won’t go to the moon and if the deal looks too good, go through the terms again.

Always use 2 Factor Authentication on everything. This prevents you from getting hacked. Keep your private keys literally private and don’t store them online that’s easily accessible. This could be solved by using a hardware wallet and cold storage. Don’t keep your money on exchange for a longer time period as it may become a centralized point of attack. Basics like never clicking on unknown links or google ads as they could be from phishing sites. Learn the difference between what’s genuine and what are phishing attempts. Never to get carried away by listening to or looking at “guaranteed” or “high return on investment”. Always do your research prior to investing, read the whitepapers, check the websites and track records thoroughly. Last but not the least, check for their legitimacy before sending your money across.

These were just a few pointers to keep in mind while dealing in cryptocurrency as it would ensure a safe trading experience.

 

 

 

 

 

 

 

 

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