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penninah

How do people get scammed trading Cryptocurrencies and how can I avoid it?

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Hi there,

I am a big fan of cryptocurrencies and I love the anticipation of a big gain. The only fear I have is getting scammed. How do crypto scammers operate and how can I tell them apart?

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Hi Penninah,

Controversy has stalked crypto since inception. Among controversial occurrences are numerous rags-to-riches stories and provision of opportunities for scammers to make millions from innocent investors and buyers. Unknowing rookies fall for mouthwatering deals that turn out to be nothing but rip-offs. Finally they lose their money and they have no one to hold accountable or follow up with. Read on to learn how this happens.

Nature of Crypto scams

Online criminals apply both old fashioned and the latest technological tactics in swindling targets. Schemes rest on digital currencies whose exchanges are online blockchain databases. Again, Crypto fraudsters depend on true and tried Ponzi schemes in using funds from new entrants in paying older investors.

Sophisticated and highly automatized systems form the bases upon which crypto fraud takes place. These include automated systems beloved of people interested in cryptocurrencies, such as automated software interactions within Telegram. Furthermore, even in legitimate transactions, fraudsters have been known to manipulate prices within the marketplace.

How to avoid getting scammed

Scammers commonly buy huge amounts of new altcoins. An increase in market prices happens, leading to fear of missing out among everyone else. New investors start investing, prices go up, and scammers dispose of their stock, making huge profits. Learn to identify and avoid such pump and dump strategies through picking stable or popular cryptos, like Bitcoin.

Cloud mining lets you lucratively mine cryptocurrencies without resorting to expensive hardware. Fraudulent cloud mining services, however, promise impossible returns and fail to mention stiff hidden fees. Practice vigilance while signing up on cloud mining server services.

Malware creators have ventured into crypto spaces as well. Modern malware will target you the cryptocurrency user or investor. They will latch onto your online wallet account balance, drain it, and replace your real address with one by a scammer.

Update your system firewall and antivirus to avoid such malware scammers. Visit trustworthy and secure platforms that do not demand downloads of suspicious attachments.

Stick with recognized and reputed crypto exchanges only. To identify them, regularly browse genuine crypto forums while subscribing to RSS notifications you can authenticate.

 

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