Crypto 101, Fraud and Scams

CRYPTO 101: Creepy Cryptocurrency Scams and How to Dodge Them

From fraudulent ICO’s up to illegitimate coin exchanges, let us look at how will be safe in the crypto world.

Criminals worldwide are doing their best to steal hard-earned cash from people who deserve it. The cryptocurrency industry is not different. There is no day went by without the mention of Bitcoin or ICO scams.

Why scam?

In the emergence of new technology, crooks can take advantage of people’s innocence. During the explosion of the internet, some criminals made fake websites to get people to purchase things that never existed. In the emergence of personal phones, scammers would call and pretending to be tax collectors.

Unfortunately, these sorts of people will always exist, and it is no different in the crypto world.

Another big reason is the lack of regulation when it comes to digital coin technology. Without governmental control, criminals can employ scams without the risk of being caught, which is very enticing.

Also, digital coins have no physical version; it means that they can be moved around the world in seconds without anyone noticing.

Types of scamming

ICO scams are one of the most prevalent in the industry as of now. Criminals offer an exciting business proposition, and also the tokens in exchange for investment. Low users invest, only for the ICO to shut down right after the money has been siphoned into traceable accounts. The best way to evade this is to only invest in ICO’s verified by many sources.

Illegal trading platforms are also a threat to investors. Someone with programming knowledge can design a cryptocurrency trading site that looks real. After that, once the user has deposited funds or digital coins, the place shuts down, and then the owner disappears. The best way to escape this is by trading with the recommended, well-known trading sites.

Crypto’s Bad Reputation

As a direct result of the rampant scamming in the cryptocurrency space has resulted in a massive distrust in the Bitcoin and altcoin markets. Luckily, there are many legitimate ICOs and crypto exchanges present now, making investing very promising.

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