After you start participating in the cryptocurrency market, it wouldn’t take long before you notice that there are some risks in the cryptocurrency market. And no, we are not only talking about price instability. As you can presume, there are scams and risks whenever you take a look while you are online. So, this is nothing new. However, these scams can be dangerous and they can cost you a lot of money potentially. Therefore, spotting them before encountering them is an absolute must.
Thankfully, you will be able to notice them and avoid them completely. But you will need to know where you should look before you can avoid them. Not only that avoiding them when you encounter them, but it would also be good for you to read reviews about certain communities and organizations. If you want to take a look at one of these, be sure to take a look at buyshares.co.uk. Now, we would like to provide you with examples of the commonest cryptocurrency cons, how you can spot them, and evade them. Without further ado, let’s get started.
1. Fake Support Teams
The first and most cunning cryptocurrency scam we would like to talk about is done by fake support teams. Some traders need help with the stock exchange, and they would need to contact support teams to help them. When you establish contact with them, they will ask you to provide them with all the information about your e-wallet, like personal password, and the list of transactions.
In case you have stumbled across a fake supported team and you provided them with all this information, they can ask traders to send them some cryptos to fix their problem. Of course, they would just take the number of cryptos sent to them and will not work on a problem at all. Thankfully, this can be avoided by sticking to credible crypto support teams. There are a lot of them and you will not face any problem finding them.
2. Social Media Giveaway Scams
It’s not hard to spot a trend that speaks about generosity from different groups and communities on Facebook and Twitter. Just check these out, many influences and companies are offering some giveaways. We can see that some of them even asked their followers to send them 1 coin, it doesn’t matter what the crypto is, and they will return that amount multiplied by 10.
If an influencer has a lot of followers, that doesn’t mean that this is a credible address, right? Therefore, you should be aware of these messages that are not uncommon on these social media platforms. What many people don’t understand is that these accounts can be pretty cunning. They can take the form of an account or a credible group you love and deceive you. So, you should avoid these messages by just deleting them.
3. Scamming Emails
One of the commonest cryptocurrency scams in the world of cryptocurrency is done through scamming emails. Just think about how many times you saw this kind of email in your inbox. Before you decide that you want to invest your crypto in one of these offers, you should take a look at some particularities found in one of these. Take a look at branding, logo, and look for possible typos. All of these elements can tell you about an email’s reliability.
Of course, if you receive an email from an organization you didn’t hear about, then you should completely ignore it. In most cases, you will see that frauds often show fake ICOs or some other initial coin offerings. So, invest some time into looking at all these particularities. Who knows, they can give you a pretty good insight into what you can expect from these emails. Or you don’t, avoid them completely.
4. Cloud Mining Scams
We can see that cloud computing is one of the most popular technologies used by countless companies around the world. We can see that this technology is used for crypto mining. We are talking about cloud mining. As you know, the costs of equipment and electricity are pretty hefty, and this fact has provided scammers with a relatively easy way to cheat miners out of their coins.
Some cases have shown just how dangerous this can be. If you are in the world of cryptos, you surely heard about the MiningMax case. We are talking about a mining service that has managed to cheat traders for two years. In the end, it managed to accumulate $250 million. While we cannot say that cloud mining is not something you should do, it needs to be said that you need to be careful about this method. Once again, traders are contacted by messages from these services.
5. Fake Mobile Apps
Last but not least, we would like to talk about fake mobile apps. Surprisingly enough, some of these can be found at credible stores like Apple App Store and Google Play. Even though you can remove them from your device relatively easily, that doesn’t mean that they cannot inflict serious damage. We can see that a high percentage of traders have already used some of these.
Just think about how much crypto they managed to scam out of people during that time. According to some experts, we can see that Android users face a slightly higher danger. The reason is that software security is on a much higher level on Apple devices. Thankfully, it is possible to avoid these risks by informing yourself by reading numerous forums and online reviews about the particular app you are interested in installing.
The Bottom Line
Despite all the information we have about the concept of cryptocurrencies, we can see that some people still don’t have the right idea about it. It’s no wonder there are so many cryptocurrency scams online. Here, we’ve provided our readers with a way to identify and avoid some of the cryptocurrency scams they will encounter. Certainly, this knowledge can help you save your money. We hope you will find this article of ours useful in the future.