5 Types Of Cryptocurrency Frauds & How To Avoid Them

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The crypto market is expanding very fast in recent years, especially with the introduction of NFTs. However, some things remained the same, which is related to the most popular options like BTC, ETH, and more. One of the key features is also still present, which is volatility. Even though values have dropped significantly when compared to 2021, this market still represents a great potential for making a profit. Still, it is crucial to learn more about various factors and how determine the right option and time for making any sort of action.

Moreover, the main rule when you are active in this market is to secure your safety. The best solution is to always keep your assets offline. However, you must use an online platform when you want to buy or sell, and it is crucial to use a reliable and safe one, like the-bitcode-prime-app.com. There are some other tactics scammers are using to steal funds from people, and we are going to introduce them to you in the following article.

1. Ponzi Schemes

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There were many cases where organizations were claiming that they will introduce a new model of crypto that will be a huge trend on the market. The best example of that is the One Coin fraud where the owner stole millions of dollars and disappeared. Be sure to learn more about how these fake projects work. In most cases, it represents a multilevel system where the main point is to bring as many people as you can to pay for some service or virtual product.

When it comes to crypto assets, it is usually a web platform where you can create a profile and then be presented with content that represents virtual assets similar to crypto. However, the problem is that there is no blockchain for that network, which is the base of such a system.

Another common detail is that they are all talking about the introduction of either a blockchain or a presence on the market in some other way. The value that is presented has no base and it is fake. The only money that you can make is from bringing others to pay for entering the system as well. The entrance fee can be from $100 to thousands of dollars.

2. Fake Online Platforms

The fact is that many people are interested in a more detailed exploration of the crypto market in hope that they will find an option that will reach the same success as BTC. There are thousands of options available today, and some of them indeed are offering great potential. However, it is crucial to learn more about the main features of these assets. First of all, there must be a blockchain. Before the introduction of such a network, the creator must introduce details of the main elements and technical features.

On the other side, there are many frauds present these days where groups are claiming that they are collecting funds to introduce a new type of crypto. The problem is that there is no real project and their only goal for them is to get as much money as they can. You will be promised to get a large share of tokens by making an investment.

3. Malicious Files

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We already mentioned that choosing the right web platform for making investments and selling your assets can be very important. Even though there is a website that is accepting only well-known assets like ETH and BTC, there is still a chance for fraud.

For example, the website might be fake, and you won’t get anything after making a transaction. Besides that, they could put malicious files into your device that will scan your files, steal data, and it can even empty your digital wallet if you don’t pay enough attention. Even some of the most popular trading platforms faced similar issues where hackers managed to steal millions of dollars worth of crypto.

4. Suspicious Links

It is similar to fake websites. People these days can easily track the activities of internet users and even get a list of emails that they can target with this fraud. It works in a way where you will receive a link when you want to complete a transaction with your digital wallet. It should lead to the page where you can access the online platform and buy or sell assets.

However, the link will redirect you to a completely different website that is a scam. Therefore, be sure to check these links before clicking on them. It is common that scammers are using names similar to those of popular platforms, and the difference can be only in one letter or an additional character.

5. Fake Promotions

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Be sure to never rush with your decision about the online platform that you will use to complete transactions. Always research the market to be sure that you are choosing a safe and reliable one. Also, keep in mind that there are still many people who don’t know much about this market. For example, scammers might pay some popular person to promote them online, and even offer certain benefits and promo features.

Another example is people who claim that they can easily turn your crypto around by trading with various options and promise to give you a huge percentage if you send them funds or crypto assets. This market is not working in that way.

The Bottom Line

The best way to avoid any of these scams is to never rush with your actions. When it comes to groups that claim that they are working on new assets, the main rule is to read the additional details and be sure that they have all the required elements to become part of this market

. Also, keep in mind that if some promotion seems to be too good to be true, it probably is like that. In the end, keep your assets safe on offline storage and make sure that your device is safe from cyber-attacks when you want to complete a transaction.