Common Cryptocurrency Scams
Phishing Scams
How It Works: Fake websites or emails impersonating legitimate services to steal credentials.
Prevention:
- Verify URLs carefully
- Never click links in emails
- Use bookmarks for important sites
Ponzi Schemes
How It Works: Promise unrealistic returns, pay existing investors with new investor funds.
Red Flags:
- Guaranteed high returns
- Pressure to recruit others
- Unclear business model
Fake ICOs/Token Sales
How It Works: Create fake projects to collect investor funds.
Prevention:
- Research team backgrounds
- Verify smart contract code
- Check community engagement
Impersonation Scams
How It Works: Scammers pose as support staff, celebrities, or influencers.
Prevention:
- Verify identities through official channels
- Never share private keys
- Be skeptical of unsolicited contact
General Prevention Tips
- If it sounds too good to be true, it is
- Never share private keys or seed phrases
- Research before investing
- Use hardware wallets for storage
- Enable all security features
Conclusion
Staying vigilant and educated is your best defense against cryptocurrency scams.
