Home Entrepreneurship How to Spot Cryptocurrency Scams

How to Spot Cryptocurrency Scams

by Roveen Anyango
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As you become more involved in cryptocurrencies, you will quickly realize that there are major risks involved in the new monetary mechanisms. Obviously, risks are everywhere, but Cryptocurrency scams should not be one of them.

Cryptocurrency scams are popping up just as frequently as new cryptocurrencies. Get caught in the wrong crypto investment and you risk losing a lot of your money. And the unfortunate thing is that none of your investment in cryptocurrency is as protected as one is a bank.

We look at various ways you can spot a crypto scam from a distance away and quickly run in the opposite direction.

Promises of very high/guaranteed returns

One of the ways fraudsters get people to buy into a scam is to either offer very high returns or claim that the investment offers guaranteed returns.

Scammers promise quick or high returns in order to get many people to buy their cryptocurrencies very fast and within a short period. However, their main aim is to make as much money in a short time then quickly exit the game. So, if you come across a crypto-investment offering very high /guaranteed returns in a short period, avoid it.

Be wary of imposter websites

Accidentally visiting a fake website is something that we can all become part of. You can conduct your research well but then accidentally follow a clone website that resembles the website of an original cryptocurrency website.

Scam

If, you are about to click on a website of a supposed legitimate cryptocurrency dealer. First, check to see that the URL is right. A fake URL copy of an original could for example be, bitc0in.org instead of bitcoin.org.

Always cross-check the websites before clicking on them and completing a transaction, as once you complete a transaction on a fake site, you will be unable to withdraw your money.

Heavy marketing/many promotional offers

Fraudsters, as mentioned, are in the game to make a quick buck then leave. Thus, to get as many people as possible, they will market their ‘cryptocurrency’ heavily. While also having unending ‘promotional offers.’ These are all ploys to get many people to invest in them in the shortest time.

A more legitimate cryptocurrency will seek to expand naturally and will only advertise once in a while.

Cryptocurrency scams are likely to remain part of the cryptocurrency market since the crypto world is an open market. However, avoiding them is the best way to get the best out of cryptocurrencies.

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