Don’t get scammed in crypto !
In the beginning there was a tech guy. He was very honest and transparent and just wanted to share knowledge about open ledger technology. At that time BTC price was very low and community was very closed. So little people know about this technology. As the years passed more and more people were attracted by this idea of peer-to-peer transactions of digital value. But more adoption brought more demand and word spread constantly. That put focus on price and speculation and all that brought so many new faces. Some of them had bad intentions and saw great opportunity for scams. Peak was in year 2017 when whole crypto market reached 800$ billion in value. At that time there were so many scammers and different scams but i will show only some of them to know how to recognize one if you see it. Each day people find a new way for scams so you need to be careful.
Most important thing to remember in crypto is that transactions can’t be reversed! Once you send your crypto somewhere that’s it. It’s done. No back.
Because of it’s nature there is no central figure in blockchain where you can complain or make disputes. In crypto you and only you are responsible for your actions and because of that think more than once when you send your crypto somewhere.
“Most important thing to remember in crypto is that transactions can’t be reversed! Once you send your crypto somewhere that’s it. It’s done. So don’t get scammed !”
Most common scams were in Twitter. All projects have Twitter among other social media. First scams were done manually by posting fake giveaways under project announcements. Later there were done by bots and were almost anywhere. Because of this many people took a bait.
They promise they will send you big amount of crypto if you just send them first smaller one. But once you send your crypto it’s done. So don’t fall on those kind of scams. Project and admins will never contact you or ask to send them money so be very careful out there.
Another one common crypto scam was in Telegram chats. Random human approaches you with asking how are you doing and can you help him or are you interested in huge gains. When someone is promising huge gains that is the first signal that something is suspiciously. If you start talking with that guy you will soon see his intentions.
Just remember that not all people who contact you first are scammers. Some of them just need help because they see you are active in chat or they have some other honest intentions. Give them a chance before you report them as a spam because Telegram use that info and block those persons so they can’t contact anyone after. In telegram you can see in what groups those people are and if they are just in one group it could be a sign to be careful. So be smarter and don’t get scammed!
Facebook and all other social media had the same scenarios. Random people coming promising huge gains if you invest small amounts of crypto money. All same like you have with emails but now there are so many filters that block those emails. In social media there are none so you need to be careful.
There are so many more scams like fake wallets where you download wallet from non trusted site which records your private key (or keystore + password) and gains access to your wallet. After some time when you log in to your wallet you see your coins are gone and you can’t do nothing about it except to learn your lesson. So be smarter and don’t get scammed!
Next one is fake exchanges with similar principle as fake wallets. You deposit your coins and newer ever see them again.
In 2017 fake ICO’s were very popular. Without any regulation it was very fertile ground for them. With fake teams (pictures are taken from internet) and fake profiles they collected money for their project promising they will solve big world problems by using blockchain technology. Those days every human problem had solution in blockchain. All offers solutions for our problems 🙂 . But after they collected money they just disappear. Where ever you think investing your money first do your due diligence and get more information as you can about that project. So be smart and informed and don’t get scammed!
Greed was the most common thing that attract people to those kind of blockchain projects. Best example of that was Bitconnect. It was as classic ponzi scheme where they promised huge daily/monthly gains. They have many options so fraud lasted for months. Because of greed investors were blinded and didn’t do their due diligence on Bitconnect project. If they were they would see that no team was behind it, gains were not sustainable and there was to much hype around it. Every single part of it screamed “Scam alert” but many people didn’t heard it. One guy even sold his house so he can invest. It was total madness. After project was shut down and money gone many promoters were caught because they were publicly promoting scam project to people (mainly in USA). So be smart and informed and don’t get scammed!
There are so many honest projects in crypto world which are trying to do great things in transparent way but people are always caught in the bad ones because of greed and idea to get rich fast. Here is an great illustration how to notice scam in crypto. All credits goes to https://twitter.com/criptonerds with great explanation
I hope this helped you to understand what danger lies in crypto. So stay smart and informed and don’t get scammed !