If you have seen one of the messages below and can’t wait to earn those thousands of dollars overnight then stop.
Today we are going to expose crypto currency scams. It is important that you read this even if you don’t like it. Just remember that there are scammers everywhere and you need to steer away from them.
SCAM 1: Fraud ICOs (Initial Coin Offerings)
Between 2011 to 2017 there was a bubble of new cryptocurrencies. Investors had poured in over billion dollars in over 1000s of cryptocurrencies. While most of them were legit but did not take off, many of them were a fraud. They make unrealistic claims by creating marketing hype. They persuade people into buying this currency.
Novice investors who want to get rich quickly fall for such currencies. They think that within a week the value of these currencies will be up by thousands of dollars and they can get 100x ROI.
But in reality, they are just holding the worthless ICO tokens. China has banned the sale of ICOs and people who know about fraud ICOs claim that ICOs as the biggest scam ever.
The following are some fraud ICOs for your reference.
- Confido: Total loss of $375,000
- Benebit: Total loss of $2.7 million
- Centra token: Total loss of $32 million
SCAM 2: Shady Exchanges
Some exchanges offer very high exchange rates for your cryptocurrency. Beware of giving your cryptocurrency details to them without understanding everything about the exchange.
If the intentions of exchange is not right then you can say adios to your currency. If you are lucky to withdraw your currency then they may charge you heavy withdrawal fees which is 20-25 times higher than the regular fees.
Following are some shady exchanges reported by bitcoin:
SCAM 3: Ponzi Schemes
We fail to understand why educated people are still falling for Ponzi schemes. Ponzi schemes encourage people to make more members in order to maximize your profits. They also offer some unrealistic returns. If they were to come true then everyone would be traveling in their own private jet.
It works on the model where the people who join later get scammed. You will never know at what stage you are joining here and chances of you getting scammed are more.
SCAM 4: Fake Wallets
You can come across many wallets to manage cryptocurrency on the android play store. We are not saying all of them are fraud but due diligence is necessary.
These wallets can take your seed or keys and rip you off your cryptocurrency.
How To Identify & Avoid
- Launched on White Paper: Such alt currencies get launched by individuals with zero technology or industry background. Usually, these white papers are copied too. With little due diligence, you can identify that.
- Anonymous Team: Try getting in touch with the team. Call on the customer care numbers. If you can’t see the team or come across fake and new profiles then chances are there that you are dealing with fraud ICOs.
- No Justification for the Cryptocurrency Growth: There will not be any road map. All the numbers will appear from the thin air. The team will not be able to answer your questions related to the appreciation of the cryptocurrency. If they start ignoring your questions, stay away from them.
- Unrealistic Urgency: They will create urgency to buy the currency. Don’t fall for it even if it is once in a lifetime opportunity.
- Research Research Research: If you come across anything new, don’t just fall for it based on its face value. Stop and think. If it is too good to be true then probably it is.
- Talk About Withdrawals: Know everything about the withdrawals from lock-in period to the withdrawal fees. Trustworthy firms will have a transparent withdrawal process and shady ones may not even have one readily available.
- Patience: Take your time. If you need to pass on an opportunity then let it go. Never dive in before your research is completed.
Most people want to earn money online and that too faster than a Ferrari. After all, who doesn’t want to earn thousands of dollars every week by doing nothing? People act out of desperation and lose whatever they have. Just think, if it was so easy to make money overnight and you knew the secret, would you share it with anyone? Naah.. You will make yourself busy in earning that money rather than sharing it with anyone.
Let’s say you require to share that money making secret in order to make money. Will you share it with your friends and family or with random strangers on the internet? We believe you have got your answers 🙂
We are not saying everything with cryptocurrencies is scammy. However, do your research before you take that route.