How To Identify Scammer In Cryptocurrency

Technology has changed the way people are working, communicating, shopping and even paying for goods. Companies and consumers no longer often prefer cash, and this behavior gives way to contactless payments such as Apple Pay. Consumers can pay for products in electronic registers with a smartphone’s quick wave. A new payment system “cryptocurrency” is now emerging.

Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money that is carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database that describe specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. You store your cryptocurrency in a digital wallet. Cryptocurrency got its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of the encryption is to provide security and safety

Everyone heard or know about Bitcoin, the first cryptocurrency, but it have others crypto that are growing in popularity. There are more than 2,000 different types of cryptocurrencies, and more are developed every day which are litecoin, ethereum, xrp ,stellar , neo and so on.

List of Cryptocurrencies

What is Scam

Scam is a term used to describe any fraudulent business or scheme that takes money or other goods from an unsuspecting person. A fraudulent scheme performed by a dishonest individual, group, or company in an attempt obtain money or something else of value.

It is cryptocurrency a scam?

Nowadays, many people are talking about cryptocurrencies is scam. When they heard about the cryptocurrency, it kept coming to their mind that it was a scam. Actually everywhere can be scam cases, whether in the digital world or in the real world.

Some of the reasons for this are:

  • Lack of understanding of how cryptocurrencies work – especially mining and trading .
  • The concept of pseudonimity in blockchain that makes identity fraud difficult to find.
  • Lack of regulation or laws regarding crypto currencies, which makes scammers bolder and has less legal support for their money back.

How to identify scam

When you’re looking into digital cryptocurrency companies and startups, experts recommend that you confirm that they’re blockchain-powered, which means they track detailed transaction data. Also, check that they have solid business plans that solve real problems. Companies should specify their digital currency liquidity and ICO rules. There should be real people behind the company. If the startup you’re investigating lacks some of these characteristics, think through your decision even more carefully.

1. Imposter Websites

You may be following a solid tip from someone with a lot of expertise but still become a victim by accidently visiting a fake website. There’s a surprising number of websites that have been set up to resemble original, valid startup companies. So, if there is no tiny lock icon indicating security near the bar of the URL and no “https” in the address of the site, you need to think twice.

For example, you click on a link that looks like a legitimate site, but attackers have created a fake URL with a zero in it instead of a letter ‘o’. That platform, of course, isn’t taking you to the cryptocurrency investment that you’ve already researched. To avoid this, carefully type the exact URL into your browser. Double check it, too.

2. Fake Mobile Apps

Another common way for cryptocurrency investors to scammers is to download fake apps from Google Play and the Apple App Store. While this is a greater risk for Android users, every investor should be aware of the possibility. Are there obvious misspellings in the copy or even the name of the app? Does the branding look inauthentic with strange coloring or an incorrect logo? Take note and reconsider downloading.

3. Bad Tweets and Other Social Media Updates

If you’re following celebrities and executives on social media, you can’t be sure that you’re not following impostor accounts. The same applies to cryptocurrencies, where malicious, impersonating bots are rampant. Don’t trust offers that come from Twitter or Facebook, especially if there seems to be an impossible result. Fake accounts are everywhere.

If someone on these platforms asks for even a small amount of your cryptocurrency, it’s likely you can never get it back. Just because others are replying to the offer, don’t assume they aren’t bots, either. You have to be extra careful.

4. Scamming Emails

Even if it looks exactly like an email you received from a legitimate cryptocurrency company, take care before investing your digital currency. Is the email the exact same, and are the logo and branding identical? Can you verify that the email address is legitimately connected to the company? The ability to check on this is one reason why it’s important to choose a company that has real people working for it. If you have doubts about an email, ask someone who works there. And never click on a link in a message to get to a site.

Types of computer and Internet related scams

1. Pishing

Pishing is defined as receive an e-mail from someone pretending to be your bank indicating you are overdrawn or made a purchase you really didn’t make and asking you to log in and verify the information. However, the link in the e-mail actually points to a fake site that logs your username and password information. See our phishing page for further information, real examples, and related links.

2. Chain Mail

Usually harmless, this scam is usually spread through e-mail and tells people to forward the e-mail to all their friends to get money back from someone.

How to Safely Trade Cryptocurrencies

1. Research investment opportunities carefully

Investors should read reviews on brokers and exchanges prior to opening accounts. The cryptocurrency industry has news every day on new products and exchanges, so finding good current information is vital.

2. Invest only what you can afford to lose

Cryptocurrencies are much more volatile than stocks and bonds, and the market is rapidly evolving. Before start trading, traders must consider the possibility of losing everything. For this reason, you should put only a very small portion of your portfolio in this sector.

3. Always learn from mistakes

As a trader, you need to always evaluate the situation and try to figure out why it happened. Take that experience as an asset for your next move, which will be better because you are know more now than you knew before. We all start off as amateurs, and we have all lost money throughout out trading experience. I’ve lost a lot by selling at losses inspired by fear. No one is perfect, no one wins every single trade. Don’t let the losses discourage you, because the reality is they’re making you better trader if you choose to learn from them.

10 Common Crypto Scams You Should Be Aware 

Checklist before you start to invest:

  • Does the website connect securely over https (not http)? If the address starts with “http” instead of “https”, the data you send to the website is not secure.
  • Can you see the word “Secure” or an image of a padlock in your web browser’s address bar? This indicates that a website is secure.
  • Does the website’s URL have any noticeable spelling mistakes or errors? If so, it could be a fake.
  • Does the site feature bad grammar, awkward phrasing or spelling mistakes? If it does, this doesn’t necessarily indicate a scam, but it does mean you should proceed with caution.
  • Does the website promise abnormally high returns? (For example, does it claim you’ll be able to double your investment?) This should raise a big red flag and is a common indicator of a scam.
  • Is there an “About us” page? Does it show the real people behind the company? Does it provide any details about where the company is registered? If there’s little or no information about who the company is and what it does, you could be dealing with a scam.
  • Do legitimate, reputable websites link to this site? This could indicate that the site is trusted and respected.
  • What do other users say about the website? Are there any negative reviews and, if so, what do they say? The crypto community is usually pretty quick to spread the word about scams.
  • Who is the registered owner of a domain or website? Is the owner hidden behind private registration? Has the domain been registered for less than six months? (You can find this information by searching for the platform’s URL registration details on a site like The more information you can find about the people/company behind a website, the better.

Source : kaspersky ; List of scam, fraud crypto website ; Cryptocurrency scam

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