“The crypto industry is full of scams and scammers and if you are unaware of these scams and the intentions of these scammers, you might end up losing your hard earned money never to be recovered back. We provide you with a list of 7 cryptocurrencies scams that must be avoided in 2022”.
The Prevalence of Scams
The cryptocurrencies and the blockchain technology is known for its unbreakable security and yet people lose Billions of dollars every year in the crypto sphere. It is not security vulnerability in the blockchains that accounts for the losses, but the carelessness of the traders and investors that get scammed by the smarter of the lot. The scammers every year come up with new techniques to scam people and that makes it difficult to avoid these scams. Below is a list of 7 crypto scams that you must avoid this year.
A List of Top 7 Crypto Scams
Crypto Address Swap Scam
There are software scripts that can swap your copied wallet address to the wallet address of the scammer. This will result in sending crypto to the scammer rather than your own wallet or the wallet of the person you intend to send to. Always double check the address after copy and pasting to ensure that it is the right address.
Seed Phrase Scam
A scammer can convince you to show your wallet seed phrase or make you enter your seed phrase on a fake wallet website and once done, all your wallet contents can be lost forever.
Un-reputed Exchange Scam
People are in the habit of keeping their funds on an un-reputed exchange as they list new high potential tokens, making them hotspots for hacking or even a chance of such an exchange to run away with investor’s money. Always keep your funds in a cold wallet and only transfer to an exchange for trading. Also, always use reputable cryptocurrency exchanges.
An attacker can create exactly similar websites of the original cryptocurrency websites or exchanges to make people enter their credentials into such websites thus compromising their accounts. E-mails are the main platform for such phishing scams. Always look at the URL of the website you are longing to ensure it is the right address of the original website and never open links in emails for logging in.
Guaranteed Return Scams
Nobody can guarantee a return in crypto markets and any website that claims to provide huge guaranteed returns after you send them your crypto is definitely a scam and you must always stay away.
There are tens of new crypto projects launching everyday and most of them end up being a rug pull that creates hype around its coin and once the investors start investing, they run away with all the money never to be found again. Always stay away from the projects that have anonymous creators.
Social Media Scams
The social media platforms such as Telegram, Facebook, Discord and Twitter have become a hub for scammers as they make people follow phishing links or in providing their login information and what not. Always stay away from these social media groups and only follow the official accounts of the crypto firms or influencers.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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