10 Ways To Stay Safe In the Crypto Space
Fraud is as old as the hills, but it adapts well to the changing reality and innovative markets, soaring to new heights as society and technology move forward. Where there is money, there are scams. Ergo, the crypto industry is a true breeding ground for fraudulent activity.
Hundreds of scams happen every year: investors lose their money on shady ICOs and fake tokens, crypto novices get themselves into Ponzi schemes, crypto holders have their funds stolen on exchanges and from online wallets. In 2019 alone scammers stole over $4.26 billion from crypto holders! Sometimes it seems inevitable — if you own digital coins, you’ll get scammed sooner or later. Well, we think it’s not necessarily true.
One can educate themselves about different types of cryptocurrency scams and avoid falling victim to fraud. Knowledge on the matter will help you detect a sham before it’s too late, protect yourself from the con men, and perhaps even contribute to their apprehension. So, how do you spot a crypto scam? Let’s dive into the murky world of crypto fraud and take a look at ten signs of suspicious financial ventures.
The first and most obvious sign that has to raise flags is an unrealistic promise: when something seems too good to be true, it usually is. Fast pay-offs, zero commissions, overly lucrative deals, and other tempting offers have to undergo scrutiny right away.
John Doe Launches Project X
Crypto enthusiasts are a pretty tight crowd: most key figures of the community personally know each other, and the rest often cross paths on field-specific online platforms and offline gatherings. If a person who has never been heard of in the crypto community launches a project, it is probably a crypto scam or some kind of risky venture that may involve scam methods. Always check if a project’s founder has a strong connection to the crypto community and past collaborations with trustworthy parties.