What cryptocurrency malpractices should you be aware of?

Cryptocurrency scams have rocked the financial industry since the day Bitcoin gained fame, and unfortunately, it is estimated that more than $ 1 billion has been lost in such scams. At the same time, millions are lost every year to such scams. We expect that you will not fall prey to such scams and hence, we bring you this very article that will help you one way or another to spot tons of crypto-based scams.

These are the types of cryptocurrency scams –

Giveaway tricks

It is incredibly unlikely that someone will have a legitimate gift that requires you to first send your very own money. On social media, you have to be careful with these types of text messages. They might be derived from seemingly identical accounts for the types one really knows and loves, but that would be part of the trick. For a lot of the responses thanking the listed accounts for their special generosity – it’s just fake company accounts or bots posted that are listed in the scam giveaway.

Fake mobile apps

Once a customer installs a malicious application, everything might appear to be working as intended. On the other hand, these programs are specially designed to steal your cryptocurrency. Inside the crypto room, there have been many instances of clients downloading malicious apps whose developers counterfeited as a major crypto company.

In such a scenario, when the user is offered a deal to finance the wallet, usually or in order to receive payment, they are actually sending cash to an address the fraudster owns. Regarding of course, when transferring funds, there are no undo buttons.

Pyramid and Bunzi diagrams

On the Ponzi chart, you can notice an investment opportunity with certain profits which is the first warning sign. Generally speaking, you will see this specific scheme disguised as a portfolio management service. In fact, there is no magic formula in the office here. The “returns” earned are just other investors’ money.

In the new hierarchical scheme, there is somewhat more work required by the individuals involved. Usually at the top, the pyramid will be the moderator. They will recruit a certain number of men and women to work at a certain level under those people, and both men and women will have their own number of people, and so forth. As a result, you end up with a core structure that grows exponentially and produces as new levels form and disguise themselves in a pyramid shape.