Types of scams in the field of cryptocurrencies; How can we not be victims? (part 1)
6. One of the most common examples of scams in this area is Bitcoin Giveaway schemes on social networks.
Scammers create pages with the names and images of celebrities such as Vitalik Butrin, the creator of ETH or Elon Musk, the legendary entrepreneur, and promise to give away free bitcoins, and if 0.1 bitcoins, you will receive 0.2 bitcoins (double).
7. The phrase “simple cryptocurrency mining with mobile” has become one of the common tricks of fraudsters these days.
The operation of mining cryptocurrencies with the processing power of the device has always been attractive to beginners in the world of cryptocurrencies, and the fact that they can mine and earn money with their own mobile phone doubles this attractiveness. On paper, mining can be done with any hardware, but is it still economical to mine with a mobile phone or a home computer? By no means!
8. The easiest way to defraud, create and market fake projects is to sell a worthless cryptocurrency (token) to ignorant people. Selling these tokens is like taking some soil by the river and telling people in another city that it has anti-cancer properties and will be very valuable in the future.
9. Pump and dump groups manipulate the price and trading volume of a coin (often lesser-known coins).
First, they pump up (increase) the price in a short period of time by buying large volumes of coins, and then, when the price of cryptocurrency reaches its peak, they dump it (sell) with massive sales.
In many cases, if the declared profit of the project seems too good, it probably is not good! Simply put, always be suspicious of any project that claims to make a huge profit on your investment.