The growing interest of people in cryptocurrencies have increased over the years but along with the positive sides of the new trends of cryptocurrencies, there are some risks that investors should be aware of.
Apart from the highly volatile nature of the crypto market that has been witnessed in recent years, there is a flurry of scams related to the industry.
Given the increasing number of fraudulent reported in recent days, many of us might know the types of scams related to digital currencies.
Let’s look at some common types of crypto scams and how traders could avoid falling into them:
Fake platforms or websites:
Crypto scammers often build fake crypto platforms, websites, or even fake crypto wallets to lure investors. The fake platforms generally look similar to the official platforms but they might carry a different domain name or something hard to decipher and differentiate.
These types of platforms ask the investors or users to enter their details like passwords for their cryptocurrency wallets and other related information and within minutes their holdings are withdrawn by the scammers.
Rug pull scams:
Investors who have been in the crypto market might have heard the term. The scammers pump up crypto, NFT, etc., to receive funding in these scams. However, after receiving the money, the sites or coins generally vanish, and the investors lose their deposits.
Many scammers often create fake accounts or pose…