Catalogue - Key Takeaways Show
Rise of cryptocurrencies has led to an increase in imposter scams attempts and many imposters are taking advantage of unsuspected investors. These kinds of scams can result into significant financial losses, and it is important to know how to identify them and avoid them as well. In this article, we will discuss about the common crypto imposter scams and provide you with intricate details on how to avoid them.
Fake Initial Coin Offerings (ICOs)
The most common types of crypto imposter scams include Initial Coin Offerings (ICOs). In an ICO the company or individuals raises funds by offering their investors the opportunity to buy tokens and coins in exchange for cryptocurrencies such as Bitcoin and Ethereum. Fake ICOs on the other hand are set up by fraudsters that create websites and social media accounts to maintain hype and fame and promote a non-existing project. Scammers collect money from investors and never deliver the promised tokens and coins. To avoid falling into fake ICOs, always conduct your own research and investigate the projects thoroughly before you invest. Look for information on the team behind the project, their experience and partnerships they have formed before. You should also cross check the project’s legitimacy through its website and social media accounts, whether it has been mentioned in reputable online sites such as coinmarketcap.com and cointelegraph.com
Phishing Scam
Another crypto imposter scam is the phishing scam. In phishing scams, the scammers create fake websites and mimic the authentic and original site. Such phishing attempts are made in terms of exchange sites and wallets. These websites are used to catfish common people, so they land on their sites and as a result login their credentials and private keys while sharing the most sensitive information they have. To avoid falling into phishing scams, always double check the URL of the website and make sure it is the correct one. Do not click the links in unsolicited emails and messages and always enable two factor authentication. Two factor authentication helps to add the extra layer of security.
Pump and Dump Schemes
Pump and dump schemes are another common crypto imposter scams. In this scheme, fraudsters and swindlers try to buy up large amount of low value cryptocurrency and then use social media accounts to create a hype around that token. Once the price increases, they sell their part and holdings, causing a massive price crash and leaving the unsuspected investors with significant losses. To avoid falling into pump and dump schemes, be wary of social media posts and messages that promote a particular cryptocurrency with little justification. Always do your own research and investigate the fundamentals of cryptocurrency before you invest.
Fake Giveaways
Fake giveaways and airdrops are also rampant in the crypto scams space. In this scam, fraudsters use the social media to promote fake giveaways and airdrops in return of a small amount. They ask the users to send small number of cryptocurrencies to receive bigger amounts later. Once they receive the initial payments they disappear with the funds. To avoid falling for the fake giveaways, and airdrops, always be wary of unsolicited social media posts and emails. Especially, if it seems too good to be true.
Conclusion
In summary, crypto imposter scams are mushrooming up in the entire crypto space. Before you fall into such scams, make sure you take steps by caution. Before investing, do your own research, double check the URLs and avoid unsolicited emails and social media accounts. By taking these precautions, you can protect yourself from the most common types of crypto imposter scams and make sure your investments are safe and secure.
About Bitflex
Bitflex is a cryptocurrency exchange platform that offers traders a secure, easy-to-use, and convenient way to buy, sell and trade cryptocurrencies. Our platform has been designed with investors of all levels in mind, whether they are just starting out or experienced traders. We offer various features and tools to help users make the best trading decisions possible, including advanced charting and analytics, real-time market data, and various customisable trading interfaces. At Bitflex, we are dedicated to empowering our users and helping them reach their financial goals.
Stay in the loop about our launches, trading pair announcements, contests and more by following u on Discord, Telegram, and Twitter.
