How to Spot a Cryptocurrency Scam

The crypto space comes with both the good and the bad just as pertains with many industries. One of the downsides of the crypto industry is the tendency for noobs and unscrupulous persons to want to pull a fast one on people. These are two of the many signs to look out for in order to avoid the traps of crypto scammers;

Free Cryptocurrencies – The value of cryptocurrencies have been appreciating since its inception in 2009 and as such you will have to be sceptical when anyone approaches you wanting to give you some crypto for free. The closest you will get to free cryptocurrencies will be either you participating in a bounty program which requires you to make an effort in spreading word about a new crypto project or through airdrops where you get coins from new projects mainly because you are already holding some coins from projects that use a similar Blockchain as the one used by this new project. It is practically impossible to come across a Santa Claus walking crypto-street dolling out free coins.

Crypto-investment doubling or Multiplying Schemes – Cryptocurrencies is not a get-rich-quick scheme as such you should be very wary of schemes that tell you that they can multiply your coin holding within a short period of time. Often, these schemes ask that you send them your coins in the process – you do not need to send anybody your cryptocurrencies to get good returns on your coin holding. You do not own any coin whose private keys you have no access to, so be very careful! Sometimes this coin doubling schemes ask you to join a professional group where they engage in pumps and dumps, don’t do it!

Put in work and do your own studies into the market and then you will be able to multiply your own coins by yourself. And if the process of crypto-trade proofs too technical for you, you can just simply stash your coins and HODL, you will more than likely witness value appreciation in fiat terms with time over the medium to long term.

Do Your Own Research (DYOR)!

 

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