The List of Cryptocurrency Scams Types 16 Popular Types of Cryptocurrency Scams And Their Solutions
The acceptance of decentralized finance is reaching the next level worldwide these days. Governments in many parts of the world are also looking forward to embracing this financial revolution using the potential of public blockchains. This is definitely going to increase the BTC value by manifolds.
The acceptance of cryptocurrencies is mainly reaching the next level because of the increase in their utilization, circulation, and demand & supply. As a result, the count of users willing to invest in this domain of finance is shooting up.
Much of its credit goes to the high level of volatility involved in it. In simple words, people nowadays want to be rich faster like never before. This is why almost everyone is willing to take any amount of risk.
When we say risk, we mean any kind of risk.
Therefore, for a new crypto enthusiast like you, it is important to know the variety of scams that happen in this domain of finance. Correct knowledge earned about it will help you keep hefty financial loss at bay.
The List of Cryptocurrency Scams Types:
- Fake Bitcoin Exchanges.
- Ponzi schemes.
- Fake Cryptocurrencies.
- Old School Scams.
- Pump And Dump Scams.
- Fake ICOs/IEOs/STOs.
- Fraudulent Wallets.
- Classic Phishing.
- Unregulated Brokers.
- ATS (Automated Trading Systems).
- Fake Emails.
- Social Media Engineering.
- Imposter Websites.
- Fake Mobile Apps.
Falling victim to any of the cryptocurrency scams listed above turns your financial life upside-down differently but significantly.
Those who do not research about it before entering the world of decentralized finance, don’t even realize that they have fallen victim to one of these DeFi scams.
They get to know about it only when Cryptocurrency Scams And Their Solutions wipe-out their savings of lifetime from their bank account.
Coming to the point, there is a solution to every problem in this world. Meaning, you can save yourself from falling victim to the list of decentralized scams listed above. This is possible by seeking correct education about solutions to avoid cryptocurrency scams. Listed below are some of the solutions you can learn about for avoiding cryptocurrency scams.
Solutions to Avoid DeFi Scams:
- Get to know the team behind the cryptocurrency you want to invest in.
- Read the whitepaper of the cryptocurrency you are interested in.
- Keep your eyes fixed on the performance of the token/coin you are interested in.
- Do some thinking and in-depth research about the feasibility of the token/coin of your choosing.
- Know about the blockchain that your preferred token/coin is based on.
- Make sure that it has its smart contract address also.
- Check the number of holders it has earned.
- Go to the website of the crypto of your choosing check its token/coin distribution plan.
- Check the social media handles related to the cryptocurrency you are thinking about investing in.
- Seek complete knowledge about its past, present, and future roadmap
- Know about its business model and ecosystem development plan.
- If needed, get in touch with the team behind it.
The list does not end here only. You will get to know about a number of more solutions about it via research on your own.
The purpose of this post was to educate you about the kind of scams available in this domain of finance and the solutions you can try to avoid them. In the future, soon, you will be educated about all of these scams and solutions in-depth.
The purpose of this post is to educate users. Everything said in this post is not investment advice from any point-of-view for any user. Therefore, users are advised to be wise, do some research on their own before trusting the information presented in this post blindly.