Common crypto scams to avoid

The year is rapidly coming to an end and in the crypto world, it felt like a long year. The market was bearish yet prices collapsed left, right and centre. We also witnessed the collapse of some coins and the growth or influence of cryptocurrencies in some countries. 2022 also saw a decline in the NFT Trend and the most recent news about FTX.

In the midst of all this, we are still as optimistic as ever about the crypto world and

genuinely hopeful about what the new year has to offer. The end of the year is a sure critical one in the world of crypto, scammers are usually on high alert during the celebratory season. As 2022 is about to come to an end, here are some common crypto scams to avoid;

1. Beware of fake cryptocurrency exchanges

Scammers often lure crypto investors with fake crypto exchanges. Exchanges will often carry the promise of free coins, additional coins to your wallet, etc but in reality, they are all fake promises and users will typically not be aware until their money is lost. Ensure to trade on only approved exchanges. Do proper research for globally accredited exchanges that you can trade on to avoid losing all of your deposits.

2. Beware of Ponzi Schemes

Ponzi schemes are schemes that promise a get-rich-quick factor or money-doubling opportunity which is never true. At first, the scam looks real as payment from the investment of new traders is shared with older traders to develop some sort of trust, that way, older investors lure newer ones with the false hope of free, additional investment. The Ponzi scheme runs in circles and is never legitimate. Ensure you do not fall for these scams as there’s no short-term get-rich-quick scheme that’s legal.

3. Phishing scams

One of the most common crypto scams is phishing emails. A scammer sends an email that contains malicious links that sometimes leads to a fake website where your details are successfully drawn, for example, your wallet key. Verify email senders before clicking links to be sure that it’s from a proper source. Also, ensure that you don’t enter personal information from a link, it's best to go straight to the website to fill in the details no matter how legitimate the link looks.

4. Coin-focused Investment Schemes

Some schemes are specific to certain coins- for example, bitcoin scams. These

scammers often send messages or “proof-like” details of how they made a lot of money investing in a particular coin and they lead with promises of how you can also make more money if you join them as an investor. They are also able to clone messages, visuals and graphic assets from a highly reputable brand to convince you that it’s real. They often request a fee to help you set up alongside personal details. In most cases, these scams are used to lure novices of first-time crypto investors who are unaware of how the crypto technique works. As a first-timer, be careful of such scammers and it’s best to learn from accredited crypto networks or sites.