Crypto scams explained

Many people recognize cryptocurrency due to its security and privacy. So, there is no scam word in crypto, but the project can fail, but not the whole crypto. Let’s see about crypto scams here.

Is crypto a scam?

Currently, crypto is the trending technology that goes to every corner of the world. It is the latest trend, and many people have invested in it. Many people recognize cryptocurrency due to its security and privacy. So, there is no scam word in crypto. Maybe the project can fail but not the crypto. If one crypto enters the market, it will come with solutions like building dApps applications, low transaction fees, high passive income, increase in transaction speed, etc.,

If crypto is a scam, then how come countries regulate it? Every government will go through the whole circumstance of the crypto, and only they will pass approval on it. Recently, there has been a lot of adoption news we can go through on the internet. There is even a Bitcoin city in the world, where only Bitcoin and other cryptos can be used inside the city. Many countries make crypto legal tender. One can pay taxes through crypto and pay for government services through crypto. 

Not only that, cryptocurrencies are accepted as payment in our daily lives. One can use crypto to buy something. It is how crypto started to rule the world. 

Read: New & best crypto to invest in 2022

What are crypto scams?

As we know, crypto is gaining a lot of trust among people, but at the same time, many scams are also taking place. There are many types of crypto scams that take place. They are:

1. Rug pull scam:

This scam will be done by their own team members. They will initially start the project widely. Give lots of promises to solve issues. After a few months, they will start to be inactive on their social media, and there will be no proper response from the team. Later on, the whole team will disappear. No one knows where they are.

In some cases, there will be no trace of these kinds of projects. Whatever cops try, they can’t find anything. The technical teams behind these kinds of projects are mostly hackers and well-known techies. One example of this is the squid game token. Many people invested in it due to its blockbuster series, but in the end, it was a rug-pull scam.

2. Investment scheme scams:

In this case, someone will call us and explain the investment scheme. They will show all the registered details, people involved in it, earnings made by others, etc. They will ask people to invest in small cryptos, and they will get daily returns. Due to eagerness, people will invest in it, and, within a few months, they will disappear with your crypto.

3. Dating scams:

Here, on dating apps, people will make fake love with someone and gain trust. After that, they will slowly know your details and ask you to send some cryptos for emergencies. Then, they will disappear.

4. Phishing scams:

In this case, scammers will send a malicious link to your number or mail ID. By clicking the link, your phone details, application list, gallery, and phone contacts will be accessible to the scammer. If you are a crypto holder, you will have a crypto wallet. From there, they will collect your crypto.

5. Public attack:

When you connect your internet to public Wi-Fi, scammers can easily access your account and loot cryptos from your wallet.

6. Social media fraud:

People on social media will interact with you. They will say different types of trading schemes or giveaways. In this, give-aways attract many people because you will get back a large sum of money by investing a few cryptos. So, everyone will get addicted to this and invest in their crypto.

Social media scams happen on WhatsApp, Instagram, Facebook, etc., Even some YouTubers get money from certain people and give fake project reviews. People believe it, invest in it, and finally lose the money.

7. Ponzi scheme:

It is a kind of people joining the scheme. They will do nothing but simply ask someone to join them. Each member will get a cryptocurrency reward for joining other members in the plan.  

8. Fake crypto exchanges:

This is a big scam. Some people will organize a fake crypto exchange and list some top cryptos. Then show excellent liquidity on the exchange. People will believe it and start to trade on it. After getting the desired amount, they will disappear.

Read: What is blockchain technology? And its types

How to recover it?

Recovering your crypto after the scam is impossible because it is difficult to find the network. They always use an anonymous transfer system to transfer your crypto to their wallet. They will sometimes leave some traces, like transferring through known exchanges. These can be traced and identified. Currently, many companies are available to identify the scams happening on the network.

Once your crypto is stolen from the exchange, it will take months to years to find it, even if it can’t be successful. We should accept all. Scammers will mostly use the bug on the network to do scams. Bug fixing is not an easy task. It takes time to come back to normal. At that time, team members from the project will alert the community to shut down the transactions. It will help users avoid losing crypto.

Is PI coin a scam?

There is no technical evidence to prove that Pi Coin is a scam. The project has not yet been launched, and soon they will announce the date. After the launch, we will know whether it has been listed on Binance and Coinbase. The pi coin is the first coin that allows people to mine on their phones, and developers can develop various dApps on the network. 

Crypto.com scam:

There is nothing wrong with Crypto.com. The team has given a detailed explanation of the withdrawal issue, and the network is under maintenance, so there is an issue. Soon it will be clear and back to normal. Before that, saying crypto.com is a scam is unfair. 

Safety tips to avoid scams:

  • Always use a cold wallet instead of a hot wallet because a cold wallet can be connected to the internet whenever needed.
  • Split and store your crypto in various wallets. It will avoid the loss of all crypto at once.
  • Transfer your crypto from the exchange to your wallet immediately. Don’t store on the exchange because scams mostly happen on the exchange.
  • Use an official crypto wallet to hold the crypto.
  • Don’t share your private keys and seed phrases with anyone.

Crypto scams are common nowadays. Your safety is always in your hands. Before investing in a project, go through it and invest in it. 

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