There’s no doubt that cryptocurrency is here to stay. With that said, there are also a lot of scams out there that can victimize unsuspecting investors. Here are a few things to watch out for when it comes to crypto scams:
Pump and dump schemes: These are when bad actors buy up a lot of a certain cryptocurrency, then artificially inflate the price by hyping it up. When the price is high enough, they sell off their holdings, leaving investors holding the bag.
Fake ICOs: ICO stands for initial coin offering, and it’s a way for new cryptocurrency projects to raise funds. Unfortunately, there are a lot of fake ICOs out there, where the people behind them simply take the money and run.
Phishing scams: These are when scammers try to trick people into giving them their private keys or login credentials. They might do this by setting up a fake website that looks like a legitimate exchange or wallet. Or they might send out emails that look like they’re from a legitimate company, but with a fake link that leads to a phishing site.
If you’re thinking about investing in cryptocurrency, make sure you do your research and only invest in reputable projects. And always be on the lookout for scams.
