5 Cryptocurrency Scams to avoid in 2022
According to financial experts, Cryptocurrency is ruling the market. People are investing their money in buying the different digital currencies available online. Being a virtual currency, after buying it you will not get a physical coin or a bil. You will be able to use a digital payment mode to cash the currency. The main reason why people are buying cryptocurrency is to hope that its value rises high. Then they can make great profits out of it. Some even buy digital currency to save the transaction fees that banks regularly charge.
However, with a lot of hype in the market, scamsters started trapping the ignorant people. They promise them a lot of guaranteed benefits after investing in this cryptocurrency. According to recent reports, the fraudsters stole approximately $7.7 billion from the people who invested in fake digital currencies through scam games. If we just consider the year 2021, the whole 52-week period was all about highs and lows. It was all linked with the digital currency market but it also helped the new coins to make their name on the list. This frenzy gave the fraudsters an opportunity to make a scam call and trap people with little or negligible knowledge about the market.
So, to save yourself from all these scams, you need to get all possible details and information about the top common cryptocurrency scams. That will help you know how to avoid cryptocurrency scams. Here is the list of possible scams that can trap you easily:
The Famous Pump & Dump Schemes:
When it comes to social media influencers, people get lured by their promises easily. They never believe some of those influencers can be scamsters. Their blind trust in such concepts makes them lose their valuable investments quickly. One such example is the pump & dump schemes that created several headlines in the market. Under these schemes, the influencers target false advertising of their crypto coins. They lure the investors to invest their money to make quick money from it. As soon as they put their money in such schemes, the money starts to go down the drain within no time.
There were a lot of fraud people who started these schemes & convinced people to get guaranteed gains and make a lot of profit out of each deal. So, if you are into any such scheme or some suspicious influencers want to connect with you to sell their schemes, make sure you get all the details about it, enquire about the currency they are suggesting you buy, and check their authentication. Don’t get fooled by anyone who claims to be your well-wisher.
As we know that Cryptocurrency is all about quick transactions with international reach. It directly shows its portability & reliability to use as a smart tool for some illegal money dealing systems like bribery, money-laundering, and avoiding tax payments. The recent reports have shown a considerable increase in such cases. People use digital currency to transfer their black money to other sources and keep the law at bay. So, if you know someone who is doing the same or you are being forced into doing any such thing, make sure you get on the right track before it’s too late. Remember crime never pays. Do not get lured by anything that will cause you trouble forever.
Theft from the wallet:
In the year 2021, a case was reported where a hacker successfully hacked the digital wallet of the investor. He transferred the entire sum from the investor’s account to his own. The sources revealed that it was a huge amount and later the hacker returned the whole amount to the investor. It was just to tell him to turn his security tight. The hacker was awarded a good reward. So, you cannot deny that traditional theft is also an important point to check. In case you have invested in cryptocurrency, it is better to keep the wallet secured enough to prevent hacking. These hackers are smart and intelligent as they fake the wallets. Sometimes they use the phone crypto exchanges to take all the money from the customer. You have to keep this factor in mind and follow the important security protocols to keep your money safe.
The term ICO refers to an initial coin offering scheme under which a specific digital currency is offered on sale to trap the investors and convince them to invest their hard-earned money in scams. As soon as the customers pay their share, these scamsters run away with all the money they get from the investors and vanish leaving no traces behind. They fabricate everything smartly, the currency, the phony bios setup, the team members working on it, and documentation that is not even legal and just fake. Hence, before you plan to invest your money, make sure that you are dealing with the right person or resource.
With all these major scam schemes in the market, there were a few more instances that showed market manipulation and broker fraud cases. All these have caused a lot of financial trouble for the people who on the verge of gaining success lost all their money in such scams.
Therefore, in the coming year, you have to try your best to not repeat the mistakes done by others and do proper market research before playing the game. Don’t believe in false promises made by the people who assure you guaranteed results within days. False guarantees will end up taking all your money and leaving you behind with nothing.