With the boom of cryptocurrencies, there are also growing scams. With so many people investing in cryptocurrency startups, it is easy for scammers to take advantage of the hype and attract investors with fake promises.
While it is hard to keep up with all the new crypto startups that pop up every day, you can easily avoid these types of scams if you know what to look out for.
A common crypto scam is just to take the money and disappear, never fulfilling any of its promises. This type of project can be challenging to detect because there are no “proofs” that the project will fail until it does.
What you should do:
- Low Risk – Look at whether or not a team is well-funded and has a marketing campaign (not one poster board in their garage).
- High Risk – Projects where all links go to Cloud storage like Dropbox, Promise something ambitious but offer very few details on how they’ll achieve these lofty goals under such an aggressive timeline.
Furthermore, let us discuss nine common crypto scams and explain how to avoid them.
- The scammer contacts you about a significant investment opportunity where the scammer offers to send part of the investment in advance but then asks for much more back in return. You are much better off not investing anything with this type of person because it’s much too risky.
- Some scams involve internet announcements about goods or services being offered for sale at absurdly low prices when consumers often receive nothing after having paid something up front. Just delete these emails! If you feel like you want to take a risk later, buy from someone reputable or check out reviews.
- Fraudulent ICOs (Initial Coin Offering). One way to avoid this scam is by reading reviews of the company and all its whitepapers on Reddit’s investing subreddit or other review sites such as Token buckets or Token Market before investing in a company you’re not familiar with just because it has a flashy website and promises “guaranteed” returns so you can retire early from your day job.
- There’s the so-called “Pump and Dump” scheme. The “pumper” tells his friends to buy particular crypto at a specific price. Then he believes some too and sells it on the market as soon as the price has gone up a bit. After a while, they sell their shares to others who now have been led by the pumper into buying those stocks at an overvalued price with intentions of selling them now at a profit for themselves. It’s easy money – but only for those who know about that scheme beforehand!
- You are sending funds to the wrong wallet address. Avoiding this scam is pretty simple but requires you to do a little research on ETH addresses. Always make sure you send funds to the correct ETH address before clicking send!
- They are sending money through an unregulated website. Many sites are not regulated by any financial institution or government, which means that they can take fees at their discretion, and there is no customer service for when something goes wrong. Be wary of these sites since they may steal your money with no remorse….just because! Check reviews of different websites before transferring any funds to ensure better protection against scams in general and scams involving unregulated marketplaces.
- Confidex Fabrication Scam – Confidex fabricates its market. Confidex’s data is manipulated to show an increase in the Confidex value falsely. To avoid this scam, it is essential to take advice from a reputable source instead of relying solely on Confidex for information.
- AdCoin Ransomware – AdCoin ransomware locks your computer and then displays a message that demands a ransom be paid before you gain access back into your system. The best way to avoid this scam is not to pay the ransom. Instead, contact a computer expert who can remove the malicious software from your machine entirely without damaging or deleting anything else on your drive.
- Fake mining pools – These are run by untrustworthy people who earn money by getting users to buy into their collection, which in turn pays them for mining bitcoins. The problem is that they invent large numbers of bitcoin being mined and being paid out to the user – it’s just meaningless information that they’ve created themselves. This means that you’re essentially sending them money before taking any reward-giving steps yourself. If you do invest, make sure to ask for or check what percentage of the profits goes towards the pool owner himself before actually investing anything other than small amounts (less than 1 BTC).
It’s critical to keep your wits about you! An excellent place to start is to decide why you want to invest in crypto in the first place. What are your needs? If it’s simply speculative, then more power to you!
But if there’s a specific problem that you foresee being solved by particular crypto, then go ahead and research a little about who else is investing. Maybe some influential people support this project, and it might be worth following suit.
Four points to remember before investing:
- Do your research! A quick Google search of the company’s website, team members, and any information available on the coin’s actual value will probably save you a loss.
- Invest only what you’re willing to lose – cryptocurrencies are volatile, which means they can raise or drop in value over time with little to no warning at times.
- Keep an eye out for red flags; many crypto wallets show detailed activity logs, so if anything seems fishy, make sure to check it out before transferring funds!
- Be careful who you trust! Folks on sites like Twitter are always looking to make a quick buck off unsuspecting new investors by telling them this is the next Bitcoin or Microsoft stock.
It is always a good idea to do your research before investing in anything.
It’s important to stay vigilant when protecting your personal information and money.
There are many scams in the crypto sphere. To protect yourself, you can follow researched guidelines to avoid being scammed and keep your money safe.
The cryptocurrency world is still new, and we’re seeing more innovation than ever before – which means there will be some bad actors looking to take advantage of people who want to make their first Bitcoin purchase or invest in an ICO. It makes sense for us to arm ourselves with knowledge about how crypto-scammers operate before they have a chance at tricking us into handing over our savings account information or, worse yet, losing thousands of hard-earned cash.
Bitcoin Scams Startups To Avoid
Every business needs capital to launch or develop its product or service, but unsolicited offers from strangers with promises of giving you money in return for nothing is a scam!
Stay away from any company purporting to make money with little effort, even if they offer what sounds like a great deal on something you could use. Be wary of requests involving phrases such as “investment,” “guaranteed profit,” and one-time sales.”
Here are six common Bitcoin Scams for startups to look out for.
- Drop – Seek’s to put bitcoins directly into your wallet, bypassing the need for an escrow.
- Trade – Offers to generate income (usually at the expense of the other party) without having any initial capital themselves. Brokers typically advertise on exchange websites like LocalBitcoins or Paxful “so you don’t have to” and sometimes advertise through classified listing sites like Craigslist or Kijiji. You may also see them in YouTube ads with titles like “How I trade bitcoin all day.”
- Promises returns – High returns that are too good to be true. In other words, when someone promises you 20% profits in a week or 100x your investment in a year, it’s an easy way to spot a scammer. When making legitimate investments, one would have to invest for years to gain such returns.
- Exaggerated claims – Claims about low risks or guaranteed specific profitable outcomes with no risks involved are just as common as high-risk “investments.” There are risks associated with any investment–some low and some higher, depending on how much work you’re putting into the research process ahead of time.
- Free Bitcoin! – Do not blindly believe anything you receive ONLINE, which offers a lot of free bitcoins. Even if it is a website with a huge following and many articles, they may be trying to hijack your email account or do some other nasty thing. Always look up suspicious deals on Reddit forums before taking the bait. The internet is full of panhandlers from all over the world who freely hand out bitcoin just to manipulate people into filling their wallets with more precious funds.
- Phishing scam – The hackers insert malicious code within your email to spread when someone clicks on the link. This traditional phishing scam is pretty effective at corrupting systems because most people think they can spot a fake email easily if it looks different than their usual inbox activity. Just remember that while you might be able to identify some artifacts of an email reasonably quickly, some aspects like the content and intentions might be harder to notice and therefore pick up on to protect yourself.
Bitcoin scams are on the rise. If you’re thinking about leaping Bitcoin, here’s what to look out for!
- The cryptocurrency is not regulated, so scammers can take advantage of people who don’t know how it works!
- There are many ways to invest in digital currencies, but if an offer seems too good to be true, then it most likely is. This goes double with any investment opportunity involving cryptocurrencies because they’re volatile and unpredictable.
- By keeping these red flags in mind before investing or sending money anywhere related to Bitcoin, you’ll avoid getting taken by fraudsters who are trying their best to make some quick cash off of unsuspecting victims like yourself.
Bitcoin scams have been a massive issue for many startups. To avoid being scammed, it’s essential to do your research before investing in any cryptocurrency or other related technology.
How To Track A Scammer On Telegram
Telegram is a messaging app focusing on speed and making things as secure as possible.
Telegram also provides features such as encrypted communications and secret chats that empower people to freely disseminate, store, and share information without fear of surveillance or censorship from government agencies, corporations, or anyone else who might try to hurt them.
New scamming tactics are coming out every day. Follow your gut feeling if something smells fishy.
Always avoid downloading any of the scammer’s apps, and always check their username. Scammers often change their usernames on Telegram to deceive people into thinking they are legitimate account holders.
If someone offers too good of a deal, ask for more information first – especially before you make any payments or give out personal contact information.
Check credentials before engaging with the negotiator. Make sure they aren’t impersonating someone else by looking at their photo on their profile and verifying them with an independent source like Google search engine results page, different social media account profile pages, forums posts, etc. Be skeptical if you feel something wrong with the offer, or conversation then stop communication immediately!
We hope we’ve given you some helpful tips on how to track a scammer. With these tips, you will follow the scammer’s activity on Telegram.
Can Telegram Be Traced By Police
Telegram is an encrypted messaging service that provides a platform for sending live broadcasts.
Telegram cannot be traced by police. But your account can be compromised if you do not have a good password.
Here’s how it works – each message on Telegram has a “time to live” value that determines how long the message will remain visible for other users before automatically being deleted from our servers as well as from any device that is connected with your account, including all past messages going this far back in time.
Telegram has put a lot of effort into evading law enforcement organizations by creating specific networks. These are called secret chats. When using these, your messages are encrypted so that no one can read them—including Telegram admins, who otherwise have access to all the data you send on the network.
Messages deleted in secret chats are also permanently erased from the servers after 10 minutes of being logged with you on the conversation (unless they’re sent before this time or another set period if configured for this on both ends of either message-sending device).
Can Government Track Telegram
Government can’t track Telegram because Telegram does not use an open protocol and enforces encryption with a closed-source custom protocol. Telegram is only supported by Android phones, and it stores data in the phone’s device memory.
The encryption is supported by a 256-bit end-to-end system that makes sure that the data sent in private chats cannot be read, logged, or modified by anyone else other than its intended recipients.
Rules for communication in public channels are more flexible, and they depend on how much sensitive information is shared there. In general, these rules are changed from time to time at Telegram’s discretion.
Conclusion
In the end, it is essential to take precautions when dealing with cryptocurrencies. Stay vigilant and always do your research before investing in any business that claims to be a cryptocurrency startup.
It’s also worth noting that not all bitcoin startups are scams- some of them may provide legitimate products or services. However, there is no way for you to know which ones will turn out to be trustworthy without doing extensive research on each company individually.
The key takeaway from this blog post should be “when considering an investment opportunity in a crypto scam startup, do your due diligence.”
Quick Answers To Frequently Asked Questions
How do I avoid fake ICOs and ETFs in digital currency?
These scams can be avoided by looking for what isn’t there. The more a person looks at the finer details of an ICO, the better chance they’ll have at avoiding one that is setting them up to lose their investment. The following these three guidelines:
1. Always look for evidence that developers exist and you know who they are (i.e., LinkedIn profiles)
2. If there’s no trace of who has already invested in an ICO or other digital currency, this should raise a red flag and you don’t want it.
3. Look for exchanges like Coinbase and something like Gemini, which offer services like cold storage to keep you safe while waiting for the digital currency to get on another crypto exchange.
Difference between a Bitcoin scam and a Crypto wallet giveaway scam?
A Bitcoin scam is when someone who has no intention to ever send you Bitcoins still promises to but just wants your money first. It’s imperative that, if you’re investing in Bitcoin, be sure that the person you are giving your money to is trustworthy.
A Crypto wallet giveaway scam is when an established crypto company without a sustainable product offers free wallets for nothing in return, claiming they are “giving back” or “participating in holiday spirit.” Make sure the company has a real product before believing them – it might not be worth it if they are out of business soon!
Are all common cryptocurrency scams trading fraud?
No. There are many types of scams, but cryptocurrency scams can largely be categorized into the following categories:
– Trading Fraud (e.g., coins pump and dumps)
– Phishing (e.g., email spoofing)
– Malware/PoS Malware hacking a computer or a phone to steal information
– Scam ICOs with low quality crypto projects that will never get off the ground because they have nothing backing them up, just an idea on a whiteboard and some flashy words on their website. Investors beware!!!
What is a cryptocurrency investment scam Ponzi scheme?
A cryptocurrency investment scam Ponzi scheme is an illegal private business model that recruits members via social media by offering them a promised rate of return on the recruit’s purchase of points “coins” for a set amount of money as an advance with no regard to any levels, regulations or legal enactments. Members are made to believe they will be able to make considerable profits from their coins’ exchange rates with stronger coins or from trading itself – with the only caveat being that those profits would come from members recruiting more members.
Does cryptocurrency exchange have an exit scam for unsuspecting investors?
There’s no getting around this question. Some cryptocurrencies are scams, and some wallets can get hacked; prices can quickly drop 20% in less than an hour.
But the good news is that it has never been easier to buy cryptocurrency like bitcoin or ethereum because many of these transactions take place on online exchanges like Shapeshift . It’s hard to say how far cryptocurrency will go – but progress isn’t one-directional. Cryptocurrencies are what The Economist called ” virtual gold” for a reason: they’re scarce, anonymous, intangible (making them theoretically immune to physical theft), and decentralized (not dependent on any bank).
Are there cryptocurrency investment scams on fake apps?
Yes. People need to be on the lookout for fake cryptocurrency wallets and apps.
It can be difficult on some mobile platforms to detect a fake, so it’s best not to download any of them and only use reputable websites. Always confirm with a trusted friend or take measures like verifying the crypto currency in Google safe search before trusting an app. It’s also critical that people don’t share their private information when using these apps that require very little personal data to create an account – this way, there is no risk of someone hijacking your funds just by getting your password.”
Can I find Cloud mining Potential investors from the social media platform?
Oh yes! What a great question. The best way to find potential investors from social media is probably through Facebook ads targeting people interested in cryptocurrency, bitcoin, and other similar topics. This should be advertising to the right demographic for this sort of thing and could give you great results.
What about anything like Reddit? Unfortunately, there does not seem to be much opportunity on that front either given how difficult it is for posts with links in them to bypass the various filtering processes reddit has in place which can make it challenging or nearly impossible to get such posts seen by people not already subscribed (which would often also need an account).
Difference between cryptocurrency scammers and cryptocurrency fraud?
The difference between cryptocurrency fraud and cryptocurrency scammers is in the way they distribute their scams. Cryptocurrency fraudsters offer the public an opportunity to invest in something that doesn’t actually exist, such as a fake company or a known commodity like gold at dubiously low prices which will only increase once they are able to exit it. Scammers, on the other hand, will not necessarily offer illegal products but are often up to no good nonetheless – whether it be falsifying credentials within their field or stealing funds from people without warning.
Can there be identity theft from blockchain technology?
There is no such thing as “identity theft” anymore. When blockchain technology came out, it dismantled financial institutions and led to the unravelling of centuries’ worth of trust for banks – which had turned our personal data into an industry and power source.
Can you buy penny stocks with a credit card?
Yes you can. It may be difficult, but it is possible to buy penny stocks with a credit card.
Yes, it’s technically possible to buy penny stocks with a credit card – but don’t do it! They are dangerous and much too risky for the average investor or trader. Penny stocks are often not traded on exchanges which means there is no official price discovery mechanism in this sector of the stock market. And because they are not covered by any regulation whatsoever, frauds involving these kinds of small-time shares abound.
Does blockchain startups do cryptocurrency transactions?
Blockchain technology is a scarce, digital resource that can be algorithmically applied to various data sets in order to proof the validity of transactions. Blockchain startups are using blockchain-based technologies for everything from optimizing supply chains and simplifying general management, through voting and decentralized peer-to-peer trading. Basically, blockchain tech is going to follow Moore’s Law and become an integral component in all areas of life by 2025.
Difference between mutual funds and the meme coin?
Mutual funds are companies that manage money for you. You can invest in a mutual fund with your bank, broker, or financial advisor.
Half of the company’s investors are converting their shares to meme coins in today’s democratized world. For-profit organizations are no longer necessary when it comes to money management thanks to cryptocurrencies like meme coin, which is an open-source project that was created to offer many smart contracts and new token opportunities on the Ethereum blockchain for anyone who wants them.
Does the crypto investor need to worry about securities law on crypto assets?
It is crucial for investors to be aware of securities law. Typically, financial assets are subject to securities law if they can be labeled as stocks or shares of capital stock.
At the moment, cryptocurrencies are not intrinsically stocks or shares of capital stock. What’s more, trading currency is not trading stocks and so does not fall under the same jurisdiction. However, it will eventually matter if digital currency becomes a store-of-value where people want ownership in equity ownership through precision valuation on blockchain ledgers that lay out investor rights specifically with terms like vesting schedules and voting rights.
