Scammers sell fake cryptos by appealing to your personal emotions or business goals. You’ll have to be particularly on top of your game to catch a scammer.
Get a feel for what the company’s about: As cryptocurrencies are still new, there are hundreds of different cryptocurrencies and blockchain startups offering investments. Get a good feel for what their values are and whether their financials look real. If the ICO listed on their website is small and their team seems small and unprofessional, you may want to look into other options.
Ask for confidential information: Scammers are always looking for the opportunity to catch you off guard and ask for sensitive information, like your social security number, credit card info, and personal identification number.
Crypto Trading Fraud
Cryptocurrency is tough enough to buy; get a flaky company to trade it for you. As mentioned, it’s difficult for most to invest in cryptocurrencies because of their anonymity and instability. One major disadvantage of crypto investments is that there’s no instant liquidity. In fact, there are no exchanges where you can immediately buy or sell crypto on the market. That’s the other bad thing about cryptocurrencies—the purchase process can take a while.
That’s a real deal-killer for impatient investors.
Crypto Trading Fraud
There are times when most people feel like they have no other choice but to trade cryptocurrencies. But before you do, check out how other traders are doing it.
Red Flags for Crypto Scams
A persistent phishing email from a fake address. This can indicate that the recipient knows the email address is fake, rather than just being uninformed about the technology. Phishing emails could have malicious links or other attachments. Keep an eye out for this.
This can indicate that the recipient knows the email address is fake, rather than just being uninformed about the technology. Phishing emails could have malicious links or other attachments. Keep an eye out for this. Cryptocurrency scams that come with a high-pressure sales pitch. If you meet the person in person, it should be a “show me” situation, where you can observe the transaction in progress. If you feel pressured into making a decision, the transaction might be a scam.
How to Find a Trustworthy Company
Once you’ve gotten over some initial fears, this is a fantastic time to explore the cryptocurrency and blockchain universe and even look into investing. But before you invest anything at all, it’s important that you learn all you can about cryptocurrency. You don’t want to fall victim to one of the more common crypto scams.
If you’re still confused about whether you want to start investing, here’s a simple breakdown of the pros and cons of investing in crypto.
‘Secret’ ICOs: Those sneaky ICOs that come out of nowhere promise big returns on investments in secret. Many ICOs will advertise huge “investment opportunity” only to cancel the crowdsale after the hype is over.
Most of the problems I’ve mentioned are fairly easy to fix, although they may take a little while to get into the open. As a result, there’s no need to avoid cryptocurrency and blockchain investments altogether. There are many great ways to invest in the sector without giving up your traditional investment mindset. Just be aware of the potential pitfalls and don’t get too carried away with hype.
Remember that even if someone’s vision or product seems great, the execution could fail due to human error or external circumstances. Even if you aren’t a beginner, you can still learn from other mistakes or missteps.