Tips for Avoiding Crypto Scams
It’s really unfortunate that in this day and age, people still fall prey to scams. Crypto is no exception to the rule, with many new traders falling into the hands of scam artists.
Sensitivity to Market Scammers
Unfortunately, it seems that crypto is a particularly sensitive market for scammers to prey on traders. Maybe the anonymity involved in the trade makes it easier to scam someone. Maybe it has something to do with the volatile nature of crypto that makes scammers think they can get away with it.
Whatever the case, it’s important to learn about these scams so you don’t fall prey. This article may be of help to you in avoliding crypto scams.
One of the most common scams is the fake ICO. With so many new coins coming out recently, it’s important to learn how to spot a scammy ICO before investing your money into it. The first thing you should do is look at their whitepaper. Many scammers will have some technical errors in them or be written very sloppily.
If you’re still unsure, look up the developers of the coin on Linkedin or Facebook , and see how much experience they actually have in development. If it seems like these guys don’t know what they’re doing, then that’s probably a sign that its not a legitimate ICO.
Another type of scam is fake exchanges . There are a few different varieties, but its important to learn how to spot them. The first thing you should do is only use the exchanges that have good reviews.
Once you find an exchange with good reviews, look at their website URL. A common scammy tactic is to have similar URLs in an attempt to confuse people into using the wrong site. A good example would be Bittrex vs B*ttex. You can also hover your mouse over links on their website to see where they’re sending you. If the link doesn’t match the text, then its probably a scam!