Common Crypto Currency Scams and how to avoid them

One of cryptocurrency's most remarkable and distinctive features is also a huge liability. Cryptocurrency users are responsible for securely storing the cryptographic keys that govern their blockchain address because there is no central middleman in the world of cryptocurrencies. Investors who decide to investigate the digital currency market should be aware that certain special security precautions are essential and that even those precautions might not be enough to protect their holdings from hackers who are continually improving their methods.

It is titled How to Avoid Common Cryptocurrency Scams. Are you nervous?

But I'm not going to wait, so let's move on, people.

First off, let me say that while I have lost money with cryptocurrencies, in the entire time I have been familiar with them, I have never once fallen victim to a scam, hack, or other form of deception.

In the realm of cryptocurrencies, it is quite simple to lose money to scams because, in contrast to fiat money, it is quite sensitive!

Vulnerable because all it takes to lose your money is accidentally disclosing your private key to anyone, and by anyone, I mean even a child who can understand what to do with it!

And won't ever return to you. This can be tracked, but it might never be retrieved because, as you are probably aware, Blockchain is an open ledger where anybody can view all current transactions but not make any changes.

One of the most frequent risks for cryptocurrency users is theft, and hackers have taken billions of dollars' worth of tokens from exchanges, wallet software, and regular users. Additionally, there are numerous ways to deceive consumers into handing over their tokens, including market manipulation, social engineering, doubling frauds, and even phony ICOs.

However, users themselves pose a serious threat as well. Most digital wallets cannot be reset if you forget the passphrase, in contrast to other programs. Due to forgotten passwords or misplaced devices, users have lost cryptocurrencies valued at hundreds of millions of dollars.

SOCIAL MEDIA GIVEAWAY Frauds are one of the most significant scams that I'd like to discuss.

Guys! Please make every effort to stay away from FREE MONEY AT ALL COSTS!

I mean, consider this.

Giveaways are good since they can be used for both positive and harmful purposes. I could use giveaways as a marketing tactic to spread the word about a service I provide, however there is difficulty when the gift starts to sound like Give me first, I give afterwards.

Please stop telling people that you would provide $2000 to the first 10 people who send $10 to a smart contract; there is no such thing as a foolish smart contract in that narrative.

The majority of scammers who use this technique and refer to it as a "Smart Contract" don't even understand what that term means, but because they have carefully considered how to play on people's desire for more, they use all the grammatical structures they think make sense in order to confuse you and set up a situation where you could be duped.

Don't be deceived by the apparent kindness of everyone on Facebook and Twitter; not all gifts are legitimate, and this will continue to be the case for as long as cryptocurrencies are in use.

Moving forward: Pyramid and Ponzi Schemes

Let me say this out loud, guys, as the first thing on this one.

People have approached me for advice on these matters, and my only response to them is, "DO NOT INVEST unless the MONEY means nothing to you."

Here is a note for considerations to help you make sure you are aware of what Ponzi schemes and pyramid schemes are before you participate.

What are Ponzi schemes?

You may learn of an investment opportunity with assured rewards in a Ponzi scheme (this is your first warning sign!). This scam frequently appears to be a portfolio management service. The "returns" obtained are actually just the capital of other investors, so there isn't any secret formula at play here.

The organizer will add money from investors to a pool. New participants are the only sources of money entering the pool. As additional newcomers join, the cycle of repaying older investors with the funds of newer investors could continue. When the money stops flowing in, the hoax falls apart because it can no longer support paying out to older investors.

Think of a service that guarantees 10% returns in a month, for example. You might put in $100. The organizer then recruits a second $100 investor, or "client." He will be able to pay you $110 at the end of the month using this freshly earned cash. In order to pay the second client, he would then need to persuade yet another to sign up. The loop keeps going until the plan's ultimate collapse.

At some point, you'll only understand that you're stealing Peter to pay Paul, at which point the chain will break and become Brokenchain instead of Blockchain.

Avoid getting into that mess!

Run away from any businesses that appear to have benefits beyond the investment.

Any effective investment platform must have other revenue streams or perhaps even use user funds and return a portion after a certain period of time (s).

What are Pyramid schemes?

There is a little bit more labor required of individuals interested in a pyramid scheme. The organizer is at the summit of the pyramid. They will hire a specific number of individuals to work at the level below them, and each of these individuals will hire a different number of individuals, etc. You end up with a huge structure as a result that expands rapidly and ramifies when new layers are added (hence the term Pyramid).

This is an illustration of Ethereum Million Dollars. That nonsense has a king sitting somewhere, and the pawns are busting their asses to bring people in—some of whom could be totally interested, but many of whom will just come in and depart, breaking the chain once more.

Even those who are new to the crypto industry are likely to be familiar with phishing. In order to obtain personal information from victims, the fraudster frequently assumes the identity of another person or business. It can happen across a variety of channels, including the phone, email, phony websites, or messaging applications. Scams involving messaging apps are particularly prevalent in the world of cryptocurrencies.

It would be really tough to phish a platform like RafTech because it is a mobile application rather than just a web site, but con artists are becoming more sophisticated every day. They can pretend to be a customer service line from RafTech or phish email addresses, but if you look very closely, you will notice that their website URL usually differs. They always try to mimic the company, but if you examine very closely, you will notice that something is certainly off.

Consider RafTech, whose website is located at raftech.com.ng, and whose emails are sent from this address, such as example@raftech.com.ng.

Examples of common phishing URLs and emails include example@raf-tech.com.ng and raf-tech.com.ng.

Before you click any links they ask you to, you must be very careful to check that the email is coming from the correct source because often, they are the best tactics they use to phish an account.

There is plenty to say about these, but we must go on, guys. These are some things to watch out for in order to avoid being duped by phishing.

Imagine having rafTech.com.ng in reality.

Many of you, I bet, won't even have noticed what just happened.

PS: THE FIRST ANSWER WINS, AND THIS WILL ONLY LAST FOR 45 MINUTES!

Lastly,

Do Your Own Research, or DYOR, is frequently used in the bitcoin industry, and for good reason. (One trait I admire about @destiny A O is that he constantly makes sure to emphasize that this is not financial advice.)

Never trust someone's recommendation on which cryptocurrencies or tokens to buy when it comes to investing. You never really know what drives people. They might be compensated to publicize a specific ICO or they might have made a significant investment themselves. This applies to everyone from ordinary acquaintances to well-known influencers and personalities. Nothing is assured to be successful. Indeed, many will fall short.

You should consider a range of elements in order to evaluate a project impartially. Everyone approaches studying potential investments differently. To get started, consider the following broad inquiries:

1. How were the coins or tokens given out?

2. Is a small number of companies in control of the majority of the supply?

3. What makes this particular project stand out from the competition?

4. Which initiatives are similar to this one and why is this one better?

5. Who is a part of the project's team? Does the squad have a successful past?

How is the neighborhood? What's being constructed?

7. Is this coin or token genuinely necessary for the world?

Make sure to give these things a lot of thought before you EVER, I mean EVER, get involved with these things to avoid being SCAMMED out of your hard-earned money!

Guys, that's it! I value your time and welcome inquiries.

Check the next post for the next class:

Avoiding Scams Within The Crypto Currency Space