The cryptocurrency market is going very popular these days. But the cryptocurrency scam is growing day by day. If you are new in the industry, you must be aware of these types of scams.
Now let's talk about how you can tell that a cryptocurrency is a scam. That's why our biggest problem today is when investing; there are many cryptocurrency startups, and most of them are SCAMs, so if you're ready for our topic today.
The rise of blockchain and Cryptocurrency is genuinely remarkable. When you see it, you see their results; You will be inspired to invest in it. Many are evolving trading models, and these trading models can attract more people to invest in it. But it is also one of the reasons why many SCAMMERS are outgoing.
Some years the Cryptocurrency has been as good. The positive side to this is that as blockchain and Cryptocurrency grow so fast, Many people earn big, and many people are willing to invest in it. On the negative side, though, this is another person's opportunity for fraud and scam; they make it an instrument for human consumption.
Now the question is, how can you identify a scammer? I will provide you with different types of SCAM when it comes to Cryptocurrency and blockchain numbers. Here is what we call fake Rico's.
One of the easiest ways to conduct a SCAM is to create and market the Fraudulent Primary Coin Offer Project. An ICO is one of the ways a legal business can make money using crowdfunding. Many ICO's work in the white paper, promote marketing campaigns on social media, post token information on stock exchanges, and co-conduct fake sales of tokens. But these ICO's behind it are SCAMMERS.
These are the ones who invest when you can earn 1,000%, 450%, 300% profit in ICO's, but there is no value once you invest in it. A study in 2017, 80% of ICOs found out that it is a FRAUD And the most popular one here is the Confido, And the biggest ICO SCAM is SENTRAL, which has SCAM for $ 32 Million. That's how much money they SCAM with people.
Now, how can we avoid this kind of scam?
- Always check the quality of the whitepaper. When a Company has an excellent money-back promise, or Too Good to be True, The answer is only one. That's SCAM. Is there a legal roadmap for that token? is there proof of concept? If not, It's SCAM too. The big question here is to find out if it's a scam or not.
Whether their support solves the problem or not? If not, it's a SCAM. Does it have an exchange platform? Is that coin or token that you can convert to another type of cryptocurrency or currency? If not, it's a SCAM.
Share or create a discussion with your friends or what community you're in. Join. What they think of the company or a cryptocurrency. That's the way you can avoid fake ICOs.
- Let's go to number two, the Cloned Fishing Websites, meaning a cloned website, copying an original website, and promoting it to people until they get personal information to use for a scam. Some Websites are easy to identify as a SCAM. But there are cloned sites that are difficult to identify, which we call a professional scammer. How can I say? What scammers do, is the original URL they replace or replicate. For example, the "o" they would return the big letter "O" now asks how you can avoid it? How can you avoid cloned websites, and what can you do to avoid being victimized? Always check the URL to see if the URL is correct.
So these are some essential tips you should know before investing in Cryptocurrency. Be aware of scammers. Do full navigation about the company before investing money.