Top Cryptocurrency Scams to Watch For

Bitcoin and cryptocurrency, in general, have grown in popularity over the years. To say the ride has been a rollercoaster is an understatement. Digital currency has faced controversy, despite the intense desire by millions. While not everyone completely understands how this monetary form works, they know that it is an ideal way to save up millions for retirement. However, with great popularity comes the ability of hackers and scammers to steal money from people. Therefore, it is best to know the top cryptocurrency scams to watch out for, so you can keep your investment safe.

Avoid Fake Exchanges

The only way to avoid fake exchanges is to get to know the well-known platforms. While unknown exchanges may offer people lower rates, they are often where scammers lie in wait. They will create a site where people feel comfortable trading large amounts of money, and then they have them disappear when the boards are suddenly gone. If you are on a platform that is not as well known, stay active on cryptocurrency forums to know early if you need to preserve your money.

Ponzi Schemes

Ponzi schemes are more commonly referred to as pyramid schemes. While they do not require people to sign up people under them to make more money, they ask you to find new investors to pay for previous investors. These scams are common and are fraudulent. The latest scheme claimed investors would be rewarded for mining pool shares if they bought into the plan or brought in new investors.

Fake Cryptocurrencies

Cryptocurrency is open-source code that is created from current coins on the market. Basically, every type of currency on the market is a variant of Bitcoin. However, because it is open-source, people can easily fall for fake cryptocurrency. The idea of investing in new coins is an intense desire of many, so watch forums and well-known trade markets to find valid coins. The fake cryptocurrency scammers use investors to purchase the cash, and then they funnel the funds into their personal accounts, leaving buyers with nothing in return.

Malware

One of the most common scams to be on the watch out for is a malware attack. Soft wallets are more susceptible to these types of scams. Hackers will use malware on downloads and websites to gain access to your digital wallet keys. These downloads are commonly found in emails and social media that will advertise the ability to mine for cryptocurrency free of charge. The statement “nothing in life is free” applies in the cryptocurrency world.

Conclusion

The easiest way to avoid scams is to use well-known forums, websites, and common sense. If people demand payment in cryptocurrency, it is more than likely a scam. Always research the new coins on the market and the businesses that are offering them. Anytime you feel uncomfortable or question something you read, follow your gut. Your instincts are generally correct, and there are dozens of solid currency forms you can trust.