Cryptocurrency is a revolutionary advancement for the monetary systems in place today. The current legacy systems require a lot of energy to handle transactions. Not only is it energy-inefficient however it must also involve a third party. Using cryptocurrency allows us to trust a network instead of a third party like a bank. Unfortunately there is an issue when it comes to this new-age digital money – scammers. Scammers are everywhere in the cryptocurrency space since it is so easy to get away with digital crimes. If you aren’t careful, you could put your trust in the wrong group or entity and lose all of your funds. We’re going to lay out some of the known scams so you can avoid falling victim to them.
Scam coins
In the cryptocurrency space there is Bitcoin and there are altcoins. Any coin that is not Bitcoin is an alternative coin, or altcoin. There are millions of investors from all around the globe that have decided to put their money and their trust into Bitcoin. Plenty of reputable altcoins also exist in this space such as Ethereum and Litecoin. However there are a lot of cryptocurrency “projects” that are coming out now as a means to steal money from uninformed investors. That is why it is extremely important to understand what you are investing in. Do not just invest into a coin because of hype. Hype will not build the future. Hype does not solve problems.
There is a term known as “rug pull” that is used to describe a project that takes investors money and runs away. Rug pulls have never been easier before cryptocurrency came along. Typically a new coin is announced with “amazing tokenomics” such as being able to earn “more coins” simply by holding the coin. This is not the only type of scam coin, but we will refer to it as an example. Investors and traders will hear about this new coin and attempt to buy and hold some for long term growth. The problem is that the creators of this coin will wait until a sufficient amount of liquidity is added to the pool and just unplug the project leaving investors baffled and broke. The creators of these coins had no other intentions except to run away with the money once it was enough to satisfy them. They will create some white pages and a website to entertain novice traders/investors while luring others into the trap. They will create telegram communities and subreddits to rouse hype for the coin, and before you know it the project disappears (along with investor funds). This is why it is important to do extensive research before investing even a single dollar on these coin traps.
Fake giveaways
You may have seen a “Tesla giveaway” or a “Binance giveaway” asking you to send (x) amount of coin to “verify your wallet address” and you will receive (y) amount of coin back. Those are 100% scams. No real giveaway would require you under any circumstance to send money first. I’m sorry to tell you if you send your money to one of those addresses then you have just lost your coins. It can be very easy to spot one of these scam attempts as they are not listed on any official website. If Binance was doing a giveaway or competition, they would surely post it on their “announcements” page. They would not introduce you to a giveaway in a random tweet on twitter. They would not send you a direct message on social media to promote the giveaway. This is one of the oldest scams in the book, yet so many people fall victim to it. Do yourself a huge favor and do not pay any mind to these types of solicitation. If any giveaway asks you to send coins first, you are being scammed.
Fake social media accounts
There are so many imposters when it comes to social media it’s ridiculous. This is another easy way for people to take advantage of rookies. Oftentimes look-alike accounts will “reach out” to people offering them “services” to help them increase their coin holdings. They will make promises like “5% daily returns” or “invest 500 make 5,000” to lure inexperienced traders into their traps. Make no mistake if you send anyone cryptocurrency that you do not personally know, you will never see those coins again. Unfortunately there are even impersonators for Crypto University. There are fake Facebook accounts that resemble us promoting the “fake giveaways” discussed in the above paragraph. We at Crypto University do not offer “trading services” nor do we ask anyone to send us funds for giveaways. If anyone contacts you claiming to be Grey Jabesi (founder and CEO of Crypto University) and asks you for money or requests your seed phrase THAT IS NOT GREY. No official admin or representative of Crypto University will ever ask you for money. All of our official products are available at true cost on our website. Just for the record, this is Grey’s official twitter profile.
These are only some of the scams that exist. There are plenty more and surely new methods will be thought of as time goes by. The best way you can protect yourself against scammers is to simply keep to yourself and don’t trust anyone. If you are uncertain about a particular situation it is best you avoid it all together. You can make all the money in the world and take as much away from the markets each day if you are willing to invest in yourself and determined to take the time to study. Your financial freedom rests in your hands alone.
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By viewing any material or using the information within this publication you understand that this is general education material and you can not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here. Trading cryptocurrency has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the markets. Only trade with funds you can afford to lose. This publication is neither a solicitation nor an offer to buy/sell cryptocurrency or other financial assets. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
Written by Edward Gonzales © Crypto University 2021cc