Introduction
The market for Cryptocurrency trading is the most popular online platform that netizens love to be a part of. As per the CNBC reports,
- Scammers around the world took home a record $ 14 billion in cryptocurrency in 2021, the credit goes to DeFi.
- In 2020, the crypto-related cases started rising at an alarming rate and the percentage calculated since then is 79%.
- The theft has increased 516% from 2020 to $3.2 billion worth of cryptocurrency. Out of it, 72% of the stolen funds were taken from DeFi protocols.
Technically, we cannot stop crypto scams but we can update ourselves and keep track of little activities to stop ourselves from being a victim.
It is not wrong to say that, since the hype of cryptocurrency has enhanced, it comes along with controversies. There are many rags-to-riches successful stories but at the same time, it has allowed scammers to earn millions from the victim buyers and investors.
Body
We can make crypto scams stop as early as we can spot them. Cryptocurrency is an online virtual platform that allows investors and novices to deal and trade with its thousands of cryptocurrencies. Some of the popular names that entice people to join and build up a career in this stream are as under:
- Bitcoin(BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Cardano (ADA)
- Dogecoin (DOGE)
- Tether (USDT)
- XRP (XRP)
- Solana (SOL)
- Polkadot (DOT)
- Chainlink (LINK)
Bitcoin prices have been hovering around $9000 for a long time now with an aim to make it a fruitful opportunity. The biggest drawback of Bitcoin’s functioning is its regulation. There is still a long journey waiting for bitcoin to enter a layman’s general investment portfolio.
Ashish Agrawal the founder of Bitbuddy startup said, “The governments themself have a lot of complexity in regulating Bitcoin but they can regulate the exchanges and other crypto service providers. As far as Bitcoin scams are concerned, one should always stay away from any type of lucrative scheme. Before giving any money to a website/mobile app, know the company and founders, make sure you’re ready for them, check their background.”
How do crypto scams work?
Con artists are always two steps ahead of what a normal person can think of, they try to dupe people who are mentally weak and confused. The crypto scams are emerging successfully because of the reasons stated below:
Fake ICOs:
Scammers create a diversion for investors that is called an initial coin offering. In this investors are promised that they’ll gain high returns, sadly, the procedure is fake and many times investors and newbies lose their money.
Phishing:
Phishing scam is a pro technique used by fraudsters. Here, the swindlers send emails to victims that resemble a brand’s format. It becomes hard to acknowledge the difference. Although there are some minute changes, as a result, a phishing scam becomes successful.
Ponzi Scheme:
It is similar to the pyramid scheme, but here they try to entice newbies and novices to be a part of their community and ask them to invest a bigger amount in exchange for higher returns. On the contrary, the scammers are duping new clients by satisfying existing clients’ needs. As a result, they are unable to make a profit.
Fake Wallets:
The imposters try to convince investors into depositing in a wallet that’s fake in nature. They come up with a pitch and play mind games where they ask the investors to deposit their cryptos into this fake wallet. The moment investors do it, con artists run away.
Pump and dump schemes:
Scammers succeed in a crypto market by smartly implementing distinct techniques. Shockingly, these fraudsters know the technical part. A pump-and-dump scheme is an artificial way of inflating the price of a low-value cryptocurrency so that investors are provoked into purchasing a large amount. On the top, they have an attractive social media presence sometimes, they target high-count followers’ profiles to fulfill their agenda. Once the price increases, the scammers sell their purchased currencies to which the price crashes, and investors end up with losses.
Social Engineering:
Fraudsters use several techniques such as impersonation, blackmail, and extortion to trick victims into giving up their crypto assets.
How to Make Crypto Scam Stop?
It is hard to make crypto scams stop. Perhaps we as investors can make huge changes to make it stop. Some of the points are as under:
- Knowledge empowers a person to achieve various segments. It is better to update ourselves in every way possible. The more we are literate, the more advantageous the results will be. It helps us identify potential scams and counter scammers.
- Don’t miss this one- it is always beneficial to know the source either via word of mouth or personal research. It plays a vital role. You can easily sense what is happening around you and which is the best turn to take.
- As cryptocurrency is a giant market, it becomes hard and confusing to take a stand. We keep it simple and try to invest in legitimate, reputed, and standard wallets and exchanges.
- Scammers will attract you with various policies but ‘greed is evil’. They entice you with promises such as higher returns, and risk-reward relationships. But, don’t fall for them. It is a trap.
- Layer your account with strong credentials and two-factor authentications. Don’t lose against a scammer. Act proactively and be ahead of them.
- Never ever share your private keys with anyone, not even with your friends or family. It is private for a reason.
- If someone is threatening, persuading,or pressurizing you, it is ideal to report scams, they may do the same to others too. Try to minimize the risk for everyone.
Conclusion
The digital market has become wide and the scope for scams has been increasing at an alarming rate. We hope this blog has been helpful to you, thank you for your time! Stay tuned!
