What Cryptocurrency Scams You Should Avoid?

As you learn more about cryptocurrency, you get to know how important it is to follow the right direction. If you lose your way once and make a very bad turn, the chances to return from it will be quite high and you will lose more than you could afford.

The market of cryptocurrency is the one that changes very quickly. Any crypto that was falling in the market could go up in the blink of an eye and any crypto being at its highest can fall before you get to sell it.

What Cryptocurrency Scams You Should Avoid?

This updated website helps you out in all such situations and provides better guidance on how you can trade your cryptocurrencies and make sure you earn profitable outcomes. Being involved in one of the best cryptocurrencies, bitcoins, or any other crypto for that matter have big risks associated with it.

Apart from that, there also are scams that you should know and be careful of. If you don’t want to lose your cryptocurrency investments, then you have come to the right place. Keep reading.

To give you a recap, cryptocurrencies are digital tokens that you can exchange for any type of goods or service. However, a lot of institutions and investors regard cryptos as a mere investment and buy specific coins with a plan to sell them later for a profit. This is done to improve their business and of course, their investment portfolio. Now, check out the following scams you should know about before you start to invest in cryptocurrencies. The safer, the better.

Market Manipulation

In market manipulation, scammers interfere or influence asset prices. The scales go in their favor just because scammers tip them and then, they make great returns. Such illicit trading activities can be explained by the following terms

Spoofing

When scammers create and use bots or dummy accounts to place huge trades. This gives the impression to other investors that demand is either decreasing or increasing.

Front-Running

When scammers make trades depending on the information of future transactions. Take this example for better understanding, node operators or miners have info about pending trades. They could benefit from using it as a money-making strategy ahead of any sort of price swings by the market.

Pump-And-Dump Approach

This approach means when a group or individual makes an effort to elevate an asset’s price to sell their holdings. What do they need? Every such scammer has one motto – profit.

It is called pump-and-dump because they pump (persuade) people to buy it. The scammers spread misleading or false information about traded coins. We know how quickly the news spreads over social media platforms and different online communities.

Rug Pulls

When cryptocurrency developers leave a project but ask the investors to keep the fund up, it’s called a rug pull. Bad actors put new tokens on a decentralized trade and couple it with a valid cryptocurrency. Later, they gather interest on different social media platforms to attract investors. When they have sufficient money in their tokens, they cancel the project they have and run with those funds.

The Usual Hacking

Investors trade cryptocurrency through a digital wallet. This can be either your offline computer, any physical device or your mobile phone. These digital wallets also have public and private keys. Now, what happens is that whosoever has access to your details or password to your account can easily manage the funds in that account.

As it’s told and taught not to share your details with anyone and not to give your credit or debit card number to a stranger, your private keys are just as important and need to be kept safely as well.

If you don’t safeguard your private keys, fraudsters will work several tricks just so that the investors can reveal their details. Scammers wait for every moment to use that valuable information. Then, they hack accounts and take back their funds.

Fake Websites

Some websites can trick you to trust them and require you to add all your details there. So many websites now are set up in a way that they resemble valid, original start-up companies. If a tiny lock icon does not appear on your screen quite near to the URL bar, then you should know that the site only looks identical but is indeed fake.