Protect your money by developing the required knowledge and instinct for identifying and avoiding cryptocurrency scams using the information and strategies shared in this post.“The phenomenal growth in the value of cryptocurrencies like Bitcoin over recent years has attracted investors, speculators, and thieves.” ~CipherTrace
A total of $1.7 billion was lost to cryptocurrency scams in 2018 according to a report published by the popular cryptocurrency analytics firm, Cyphertrace.
According to a report by the Wall Street Journal (WSJ), cryptocurrency scams took in more than $4 billion in 2019 alone.
As of July 2020, cryptocurrency scams have already accounted for more than $381 million as reported by Bitcoin.com.What are Cryptocurrency Scams?
Cryptocurrency scams are any schemes or systems devised and designed to swindle you.
They operate mostly by playing on your, ignorance, GREED, and desire to get-rich-quick.
Promising you “free money” or a “once in a lifetime opportunity” to make some highly unrealistic returns on investment (ROI).It’s easy and simple. All you need to do is send this small $$ amount. And if you want to “make it BIG” at once, use some of that money in your retirement savings account. blah blah blah”
And who doesn’t want to be “rich overnight”. But don’t.Types of Cryptocurrency Scams
Now let’s take a look at the common ways that cryptocurrency scammers operate and the strategies they use to trick you into sending them your money.
Types of Cryptocurrency Scams
If you want to skim-read, you can click on any one to jump to their respective section on the page.
Ok, now that’s a long list.
Let’s briefly explain each of them, how they work, and the best ways to avoid them.Types of Cryptocurrency Scams: 1. Presale or ICO Scams
Initial Coin Offerings (ICO) and Presales are a way for cryptocurrency...