3 Crypto Scams you should be aware of

Scammers are everywhere and the frustration that people experience when getting scammed is a feeling that can be shared almost everyone. Since there is no point complaining, let’s take a look on some common ways scammers bait their victims.

Disclaimer: the following tips do not guarantee that you will be able to spot scammers, scams come in a number of different forms and some may be more convincing than others.

Apples come in many different shapes and sizes, so do scams. Please be aware that scammers may use different tactics that have similar shapes. (except for exit scams I’m about to talk about) They also tend to be very nice and patient during the first part of your conversations, but they can easily turn very aggressive. Without further delay, here are 5 common types of crypto scams.

Cryptocurrency gambling site admin panel scam

As stupid as this seems, people have lost thousands of dollars to these scams. To start off, the scammer approaches the victim on social media with a claim that they have the admin panel to a gambling site. If the victim falls for the bait, the scammer sends a BTC deposit address to the victim. The victim, believing that the scammer actually has the admin panel, send their hard earned money to the scammer’s wallet where it disappears forever. Be aware that this scam comes in many different forms and that you should always be on the lookout when a person claims something that sounds too good to be true.

This scam should be the most obvious scam out of the 3 in this article. Sadly, most people still fall for this trick. To put it in perspective, its like getting scammed by this idiot:

Cryptocurrency withdraw problem scam

Similar to the crypto gambling site admin panel scam, the scammer will approach the victim offering something in return. They will claim that a site they have BTC in requires a minimum deposit to withdraw. They send you a fake screenshot of their account and send you a deposit address to deposit BTC to the account. After you send your money, they disappear and you lose all your money. A typical hit and run situation.

ICO Scams (Exit scams)

Most of you have probably heard this term, but most people don’t fully understand what an exit scam is, or how you can spot some of the most common details of an exit scam project. By definition, exit scam is when a vendor continues to collect payments but they do not ship out the goods. This can also be applied to cryptocurrency. Instead of goods, however, the project team hosts an ICO (Initial Coin offering) and to make that easier for those who are not familiar with that term, it basically means presale. The problem, however, is that projects sometimes just disappear, leaving distraught investors waist deep in water. This is one of the most difficult scams to spot, so I will list out some of the common things you can look for before investing your money in a project.

• First and most foremost, if the project is claiming an outrageous return, then it probably isn’t true. For example, I have seen project promise a 10000%+ ROI. I mean come on; would anyone even attempt to invest in that? Sadly, people lose money on these types of projects all the time. They are sorely tempted by crazy returns and end up losing more than bargained for.

• The whitepaper of a project is probably one of the most important features you should look for before investing. The whitepaper is a document that talks about the project itself and defines what the project is looking to achieve. Furthermore, the whitepaper usually includes specific details about the team, coin, and what the coin’s future will look like. If the whitepaper is lacking these things or if the details are vague, then you should stay alert about that project.

• Finally, you should take a look at the project team/backers and see that is backing or supporting the coin. Good projects that have good backgrounds usually get partnerships with trustworthy coins, but be aware that this may not mean that you can turn a blind eye on the tips above and randomly invest in a coin when they have good partnerships. Partnerships are really complicated and a lot of times, backhand deals are made for projects to become partners.

All in all, these scams have one thing in common. If you are being offered something that sounds too good to be true, then it probably is. As a final tip for new crypto social media users, there are many hackers out there trying to hack into your computer to gain access to any private keys or information. If you are approached by a stranger with a random link, make sure the link is safe by checking using the link expander provided below this article. This tool will expand any hidden links or redirects in the link you are given and you will be able to see if the link redirects you to a shady site or an IP address grabber. If you do find malicious links or redirects, report the user that sent you the link.

Stay alert and thank you for reading.