• Fri. May 24th, 2024

Cryptocurrency Scam: Warning Signs



May 29, 2021

It is undeniable that the crypto market is expanding remarkably fast. You can join the bandwagon to enjoy the huge returns from the crypto industry. However, beware of scam activities in this decentralized space. Safety is not guaranteed since hackers can attack even the leading cryptocurrency, Bitcoin. As much as we are not here to scare you, you have to stay alert to enjoy the luxuries that digital coins have.

If you are up-to-date with business news, you will agree that hackers storm into the financial markets anytime. You have to monitor your every move to spot the scammers before you become their victim. The worst of all is that scammers keep on updating their game. Crypto hackers will use sophisticated procedures and tricks to lure you into their dark games. However, how can your distinguish crypto scam from legit deals? Here are some of the red flags you may be dealing with as a scammer when in your crypto undertakings. 

The Asset Lacks a Local Exchange 

Avoid any digital coin that you cannot exchange into a fiat currency. For instance, digital assets such as Ethereum and Bitcoin have local exchanges. You can utilize these exchanges to convert your BTC or ETH into fiat currency. 

In most cases, scam dealers will allow you to exchange their assets internally. That is a red flag you need to note when in your cryptocurrency activities. There is no way a legit deal will require you to exchange your coins within a specific community. You cannot trade a legit crypto coin internally, but you can use local exchanges to convert your assets into fiat currency. 

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The Asset Appreciates Continuously 

That is another trick by scammers to access your savings. Remember, you are in a volatile industry where ups and downs are usual. There is no way you can find a legit crypto coin appreciating continuously. Whenever you find such a product, you are dealing with a scam digital asset. 

Scammers will take advantage of your urge to earn profits to trap you. Fraudsters use psychology games to lure you into their fake deals. Indeed, everyone wants to get profits in their investments. However, never expect too much. Avoid those assets that appreciate each day. 

The Asset Lack Solid Background Info

There is no way a legit crypto asset will remain anonymous. How much do you know about your preferred digital coin? If you cannot get solid background data concerning a specific cryptocurrency, it might be a scam coin. A legit digital asset would reveal its basic info such as the owner, company’s headquarters and addresses, and others. 

Before you continue with your investments, research the background of your specific asset. If you are not satisfied with the background data, you can avoid that digital coin. 

An Asset Promising Consistent and Huge Returns 

Scammers understand that your only motive in the crypto market is to earn profits. For that reason, they will promise you consistency and significant returns. That might also fool you that the scam artist is not after your investments, instead there to help you maximize your outcomes. 

In most cases, these digital assets will find their way to you through unsolicited channels like social media or mail. Whenever you encounter a cryptocurrency promising you huge and continuous profits, keep in mind that it might be a scam object. 

After all, you can never find any legit investment generating huge profits continuously without equivalent risks. 

The Asset Does Not Fulfill Basic Characteristics

Do your digital asset fulfill the following?

1. Decentralization

2. Controlled Supply

3. Unlimited Use

If not, you may be dealing with scammers. 

Final Thought 

Today, you will find thousands of cryptocurrencies in the virtual industry. That means you have the freedom to pick what will profit you. Each digital coin has its unique ways to advertise itself. However, you have to beware of scammers. You can use the above red flags to spot fake virtual assets.


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