Four Common Types Of Crypto Scam To Be Aware Of

There have been many bad experiences with the cryptocurrency around the world, and many of the people have lost their investments because of the crypto-currencies scam. Even though there are some fakes those who have spoiled the reputation of the crypto investments. But that does not mean that the entire industry of cryptocurrency is spamming. While you can still deal in the cryptocurrency for your business, you need to be aware of the complications that can happen during the investments and be very cautious with your deals as crypto scams are quite common these days.

Here are some of the scams of crypto-currencies which you should be aware of:

Fraudulent ICOs

One of the most common ways to increase investments in the market is to forge a fake ICO which creates hype in the market. It can easily catch the attention of Investors. Since ICOs are an effective way to start a new company, it can be used in a bad way as well. As the crypto-currencies doesn’t have any direct involvement with such frauds while they are trying best to avoid such fraud as well. Instead of earing benefits, investors can be able to get some useless ICO tokens in the end.

Shady exchanges

Ilan- Tzorya
Ilan Tzorya

Have you heard about the fraudulent currency exchange news which was exposed by the cyber unit of the national police in Europe? While it is a common thing in Europe since there are more than 300 companies which have been working on the gambling business and using cryptocurrency as a forex tool also. A company own by Ilan Tzorya have also convicted in such practices as well. While you should be aware of such ill practices.

Fake wallets

After the Bitcoins, many wallets have come and most of them are fakes only. Picking a random wallet only make you an easy target for scams. In case you need to use a reputable wallet which can give you the surety of your currency. Without the proper diligence, you should never fall for the traps of scammy wallets. They promise you seeds and control of your funds while they take your seeds and private key and also rip off your crypto-currencies as well.

Phishing scams

While doing a transaction, there is also a chance that another person is trying to get the private information about your crypto wallet. In such a case you need to protect your username and password. Do not leak any information about it.

In the investment business, scams are not a new thing while you need to be a bit aware of such things to avoid having similar experience with yourself.