As the popularity and technology surrounding cryptocurrency continue to evolve, so do scams. They come in all shapes and sizes but with a little knowledge at your side, protecting your investment is easier than you think.
Along with every promising, new innovation comes a dark side. Cryptocurrency is no different. Like a virus, scammers are spreading across social networks and infiltrating every corner of the crypto world. These aren’t just your average pyramid schemers here. As the technology continues 1eto grow, so does the sophistication of these criminals. Yet, not all hope is lost. Here are a few key warning signs to look out for before throwing your money into the digital currency market.
CRYPTOCURRENCY SCAMS: COINS THAT ONLY APPRECIATE
You might see a coin that only appreciates in value as a good thing but it’s a major warning flag. All currencies, whether they are digital or fiat, are volatile. They go up and down with the market. As humans, we tend to gravitate towards profit and scammers know that. Hence, they created a series of coins that only grow in value every day. When people see this, they leap at the opportunity to make some big money only to later discover they’ve been duped.
CRYPTOCURRENCY SCAMS: FALSE PROMISES
This one is an age-old lesson. If something is too good to be true, then it probably is. Yet, many still fall for this trick with cryptocurrency. Scammers promise their victims a very significant return on their investment and a consistent one at that. Not only does this get you to invest more in their scam but it gets inside your head. This technique makes you think the scammer is actually out there to help you make money and not just take your money. Very rarely will you see any investment that produces consistently, high returns without risk.
CRYPTOCURRENCY SCAMS: ANONYMOUS PROJECT CREATORS
We don’t know the person or people behind Bitcoin. Hence, many scammers are using this logic for their own little tricks. If you can’t find any useful information on the project creators or team members of a given opportunity, then think twice before giving them your money. Just because Bitcoin did it, doesn’t mean every company out there with an anonymous creator is the next big thing. Take the time and dig into the people behind your potential investment to see if they live up to their claims.
CRYPTOCURRENCY SCAMS: HYPE MARKETING
Are you being bombarded by ads, social media, emails or a “friend” about a certain ICO? Well, that’s another massive warning sign. Don’t just buy into an ICO because the sales pitch make you feel better. Do it because of its business fundamentals.
CRYPTOCURRENCY SCAMS: NO FUNDAMENTAL CHARACTERISTICS
Speaking of fundamentals, if the cryptocurrency does not have the following characteristics, then get out:
- Unlimited Use
- Controlled Supply
- Public source code that anyone can verify
CRYPTOCURRENCY SCAMS: SALES COPY ON REDDIT AND YOUTUBE
Some of the more crafty scam artists take to sites like Reddit and Youtube to post some well-written sales copy. At first glance, these people may seem legitimate since they are not using any traditional, “scam words” and they catch some people off guard in the comment section. However, don’t take these opportunities unless the person behind the comment can provide some legitimate proof to their claim. Now that you’re armed with a few key tricks on spotting these warning signs, you’re ready to hit the cryptocurrency market with some new found confidence. As long as you put in the work to check out any interesting opportunity, you’ll never be taken advantage of on your investment. Do you want to learn more about cryptocurrencies? Visit YouToken.io.