TOO MARKET

Unfortunately, the world of cryptocurrencies is often accompanied by criminals who are after your cryptocurrency.

New investors, in particular, are often the victims of cryptocurrency scams. Sometimes it is also difficult to distinguish scams from legitimate services. In this article we highlight a number of common crypto scams, which you as an investor should stay away from.

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01. Phishing (use of fake copy websites)
This is a method commonly used by criminals. Not only in the world of cryptocurrencies, but in all places where money is traded or data can be collected. Banks are also worried about this. A criminal completely recreates a website and puts it online. Most of the time, they try to lure visitors to the fake website by buying advertising.

Too  They use false email accounts, very similar to the legitimate company, duplicated in whatsapp, telegram where they pose as representatives of the legitimate company.

To avoid this, check which URL of the company's website is legitimate, find what your email is and compare it, as well as if the company has an application in Google, verify that the contacts are legitimate by making a comparison.

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02. Bitcoin Revolution Scam (Ads by Famous People)
Jeremy Clarkson A lot of attention has recently been paid to these kinds of ads. You may have seen them. Advertisements for Jeremy Clarkson, Simon Cowell, and Bill Gates, appearing on a reputable news website, such as the Daily Mail or the Sun. They target very specific countries, so it can be someone famous from your country and a famous news website from your country.

The ad says that they have discovered a secret on how you can make a lot of money fast. And then you will be redirected to Bitcoin Revolution or Bitcoin Code page. The owners of these ads mainly buy ads on popular platforms like Google, Facebook and Instagram. As a result, they are displayed in higher priority than other messages, because they spend a lot of money on these ads.

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Bitcoin and other cryptocurrencies are also subject to being imitated by offering returns or cryptos that are not real or do not exist in the market, they set up a whole scheme to make us think that they do exist.

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One way to check that they exist and are in demand is to see a list of companies that list highly reputable cryptos in their projects, such as: SEE LIST

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03. Crypto Giveaways (doubling your crypto)
This method is mainly used through Twitter and Telegram. Scammers comment with bots on popular Twitter post. Most of the time from someone famous in the crypto scene, for example Binance, Coinbase or Elon Musk. The message contains a website where you can claim your free cryptocurrency, where you send for example 0.5 bitcoins and they give you 1 bitcoin back, according to them they double it if you send to a certain address.

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04. Ponzi Fraud or Pyramid Schemes
Most of the platforms that promise insanely high returns, most of the time it is a Ponzi fraud or pyramid scheme. The percentages are usually around 1% per day or more. These platforms are 99.9% of the time a crypto scam. New investors often pay for older investors, which keeps the platform profitable when new members join. As soon as this stops, the platform will crash and the owners will disappear with all the investors' money.

To instill confidence, they pay well in the first few weeks/months/years, which is why many people see proof of payment.  

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05. Pump and Drain
This method was very popular in 2017 in particular, but it still occurs on a small scale. Through Telegram, you will be attracted to a special Pump and Dump group. In a Pump and Dump pool there are dozens of users who will buy a certain cryptocurrency at about the same time. The leader of the group indicates a moment in which the cryptocurrency is announced and the joint bomb is started. So most of the people in the pool do not know what cryptocurrency is being pumped.

For the bomb, the leader of the group and some other people who are in on the plot make sure that they have bought the cryptocurrency beforehand. They will announce the coin at the agreed time and everyone will start buying the coin. This causes the price to rise rapidly, which means that many people have to buy the coin for a larger amount.

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