Since cryptocurrency was first introduced to the online world, it has drawn a lot of controversies as there are a lot of rags to riches stories that have attracted a lot of people. But together with these success stories are people who are trying to take advantage of unsuspecting individuals. There are also stories of fraud and scams on cryptocurrency and Forex Trading that’s been making rounds all over the internet, spreading fear and false rumors.
For you to be able to avoid frauds and scams in cryptocurrency, you have to know how it happens and the process behind each fraudulent activity.
This is the most common and the easiest way scammers tend to victimize unsuspecting traders and investors. These fake platforms may come in mobile apps or websites resembling authentic crypto investment platforms. Unfortunately, people do not look very closely into these websites and fall victim easily.
One means to identify whether the website is real or not is through the URL. When you go through the site address, it should contain ‘https’ and a lock icon. You must also make sure that as you go along, no changes in the URL should be made at all. As for mobile apps, scammers tend to create fake apps with similar names as with those real ones. To avoid getting scammed, you must ensure that the app is secure before logging in your credentials.
Giveaway Scams Utilizing Social Media Platforms
Free giveaways on different social media networks are quite rampant nowadays. You might see these on Facebook, Twitter, and Instagram. But don’t get fooled as most of them are misleading and just too good to be true. If the deal is unbelievable, then it can be fake. Don’t fall easily to those giveaway schemes asking for some cryptocurrency in exchange for a whole lot more. This is nothing but an elaborate fraud.
You came across a website offering free cryptocurrency mining. This can be very tempting. Though there are real cloud mining websites out there that can operate even without paying for expensive hardware, there are also a lot of websites who are not offering genuine services or hidden fees are being forced on users. You should avoid these cryptocurrency frauds by checking if they are offering unbelievable promises. Most of the time, frauds are leaving promises of high returns while not mentioning the hidden charges that are taken on the returns. Be wary of these sites and be wiser than the scammer.
Unregulated Brokerage Firms and Exchanges
Since there are already a huge number of cryptocurrency exchanges and brokerage firms sprouting nowadays, it is becoming so hard for the government to track all of these activities. These unregulated firms and exchanges are the culprit behind those frauds and scams in cryptocurrency. These two good to be true promotions can be hard to resist. But keep in mind that if it looks too fancy, it might really be fake. The worst-case scenario on these unregulated exchanges and brokers is that they steal your money or charge you with hefty commissions on cryptocurrency or Forex Trading.