Here are three new Bitcoin Scams you need to know when trading.
New Crypto-Based Opportunities: ICOs and NFTs
When new companies are looking for investment, they prefer crypto-based investments, also called initial coin offerings (ICOs) and non-fungible tokens (NFTs). Unfortunately, a new gateway opens for even more scammers to get a hold of your money every day. We cannot discuss the background of the investments in the article as it is out of the league. However, you need to understand that all the crypto opportunities and investments look like dinner served on a platter, but it might sometimes be a mirage.
For example, many scammers generate fake websites for ICOs and guide users to deposit cryptocurrency into a dispute wallet. Or they can pull a UNO reverse, and the ICO itself is at fault. In addition, founders or Scammers (call whatever you want) could allocate unchecked tokens by U.S. securities laws or mislead investors about their products via fake advertisements.
DeFi Rug Pulls
“DeFi rug pulls” is a new scam recently hitting the crypto markets. The complete form of DeFi is Decentralized finance, and the main aim is to remove all the gatekeepers for every financial transfer and make the world a decentralized financing network. Since its launch, DeFi has only attracted many innovations in the financial ecosystem. However, the development of DeFi platforms has become a problem. Scammers have posed these problems, made a fortune from various investors, and gotten away with it, untouched. The above trick is known as a rug pull, and it’s spreading like wildfire on a dry day because DeFi protocols have become popular with crypto investors. The reason? Invest in the right DeFi, and investments are magnified many times.
Cloud Mining Scams
Various platforms advertise to retail and small buyers and investors to invest capital
and get an ongoing stream of mining power safe. After the mining is over, they receive the reward. The platform doesn’t even own the hash rate. They pretend. So there is no way that they will deliver the reward promised after the down payment. Investors need to understand Cloud Mining is not a scam, but you need due diligence and later invest.
Are Cryptocurrency Scams Rising?
We are being Straightforward, yes. Cryptocurrency scams are blooming like a garden in spring, and give it a few years, and it might be out-of-hands. The risk managers have put out Decentralized Finance (DeFi) investors, and users underwent an approx. Losses of $10.5 billion (November 2021) due to fraud and theft. The number was seven times $1.5 billion in 2020.
How to Recognize Bitcoin Scams
When you read a victim’s story or case, the first thought that pops up is, “how foolish you have to be to fall for such a scam?” So let’s see how foolish you have to be.
Why was Harvey talking to a woman he had never met? Moreover, he agreed to invest hundreds of thousands of dollars? How can someone give away $1,000,000 worth of Bitcoin to a business partner without picking up the phone to discuss the deal? How did she believe that she would get a guaranteed 50% return?
The answer? It is easy to lose your skeptical faculties when someone shows you and promises you a bright future, or a person you chat with, thinking of a close romantic partner or things that look real with them. It is easy to fall for red flags when many factors cloud your judgment.
It would be best to guard up when someone you never met comes your way offering you money through Bitcoin.
Understand these rules
Never fall for the hype. If they claim guaranteed returns and are very big for you, treat it as a scam until due diligence. On this planet, there aren’t legitimate investments that will double your money within a week, month, or a year, for that matter. So ignore any claim that will make your bitcoin investment “double.”
Bitcoin stands for Bitcoin. Bitcoin is rising in value because genuine investors believe they will be able to sell it for a higher price in the future date. The reason investors call it “speculative investment.” If it says that the deal is rare or special and involves Bitcoin, Dump it right there.
You are obsessed with Bitcoin, and you meet someone online, and they offer an investment opportunity. Unfortunately, they are lying to your face. The government does not track you, and the Social Security Administration won’t ask you for Bitcoin or crypto payments. If someone forces you to adopt Bitcoin as a fashion trend, call the cops.
Suppose you think that you have been in a crypto scam, file a report with the FTC. Then, it is safe to share Bitcoin scam information with FTC as it helps in keeping Americans aware of new scams.
The Bitcoin Scam has reached new heights. Identifying the many types of bitcoin scams may prove advantageous in the long run. It might be highly beneficial to naive investors who are easy victims of con artists. Phishing and investment scams are both old and difficult to detect frauds. Because social media is the new medium these days, online freebies must be kept in mind. Because they’re fake, and the celebrity who promotes them is almost certainly a victim of a hack. Don’t be duped by similar promises, and don’t allow thieves to take your bitcoin.