With the digital transformation in everything we can witness the fast and broad use of digital money like Cryptocurrencies. Several countries are adopting and normalizing crypto coins to actual currencies. This blockchain-oriented currency has tended to give people high profits investment opportunities and growth globally. However like it is said where there is money there are scams. The same is the case for cryptocurrencies.

The digital currencies along with opportunities came with a fear of scams. Several tech hackers and online thieves look forward to potential customers and scam them causing considerable losses. Several scam stories have been revolving about. But you need not worry! Here we have compiled the way to spot the scams and avoid them before they cause massive loss to you. So are you ready to learn? Let's get ahead!

Ways to Identify Cryptocurrency Scams

1. Beware if blockchain is not there: Cryptocurrencies use blockchain networks. You don't need to understand how a blockchain works; realize that crypto tokens cannot exist without one. Here several scammers hide their deceptions by stating that their blockchain is "under development" or "soon to be published." Well this is a sign you must not go for that platform where no blockchain is provided. A prominent example is OneCoin fraud. According to a BBC investigation OneCoin officials claimed to have retained its blockchain on their personal computers. But in actuality they are fake.
2. Beware of Scams Using Phishing: There are times when scammers impersonate themselves as government authorities or customer service representatives will want your account details. They then use that data to access your private keys and empty your accounts. Therefore no cryptocurrency platform asks for this again once registered. So if anyone asks you can easily detect that they are trying to scam you.
3. Spot Fake Emails: A typical sort of fraud includes sending an email with an enticing offer. Some of these emails often begin with:

"Congratulations you have won a Binance closed competition and now have a personal link to the mail queue" or "Your mail has been recognized as the winner in our Whitelist." Please check in to our website to confirm your win."

Again such emails are occasionally genuine. However it would help if you always double-checked the facts in official sources and project conversations before participating in such activities.

1. Be wary of Online Crypto Bonus: Scammers that utilize multilevel marketing or MLM usually use crypto jargon to lure individuals to join their crypto-curious acquaintances into their pyramids promising them bonuses for recruiting additional "members."

On the other hand crypto initiatives do not have "members" but rather investors. Don't take cryptocurrency advice from an online source who promises you fake bonuses. You need to understand there are no such bonuses involved in the crypto world.

Related Article: List of the Best VPN for Crypto

1. Say No to "guaranteed" returns if any provides: In crypto there is no such thing as a sure thing. Scammers who claim to have developed high-tech solutions to guarantee investors' profits are usually arrested. No supercomputer AI tool or magic wand can promise anything in the highly unpredictable crypto realm. Tokens might fall and rise. If someone claims to be able to eliminate the element of risk from cryptocurrency they are trying to scam you.
2. Beware of "free money.": Any offer of free money whether in cash or cryptocurrency is a scam. It's a fraud if you're given free money in return for revealing personal information.
3. Large claims with few or no details: If someone pitches you an "opportunity" with ambiguous or worse no details it's most likely a fraud. It is a hoax if you ask for further information and your queries are not addressed.
4. A sensation of immediacy: Scammers may instill a sense of urgency to persuade you to do what they want. Be careful of anyone who attempts to convince you that you must act immediately.
5. Don’t fall for bitcoin giveaways on social media: On social media there are several bogus posts advertising bitcoin prizes. To entice consumers some of these frauds use bogus celebrity profiles to promote the offer.

When someone clicks on the giveaway they are led to a bogus site that requests verification in order to collect the bitcoin. Making a payment to establish the account's legitimacy is part of the verification procedure.

The victim may lose this money if they click on a bad link or they may have their personal information and cryptocurrencies taken if they click on a malicious link. Therefore spot and avoid clicking.

Ways to Prevent Cryptocurrency Scams

Now if you know how to identify and spot the scam the next is to prevent fraud. For the same here are some easiest ways to get ahead!

1. Never give financial details or secret keys to anyone: Even if you are optimistic that you are engaging with a trustworthy person for investment in cryptocurrencies such as a wallet or cryptocurrency provider you should stay cautious and avoid revealing crucial information. Do not disclose these data to anyone if you require them to conduct a transaction or obtain access to an account or wallet.
2. Check URLs and domains of crypto sites twice: Check the website domain name or social media account to avoid sending money or information to someone impersonating an actual individual or business. Check that there are no apparent misspellings and if relevant that the account is authenticated.

You may even contact the website or social media platform's official channel and inquire if the account in question is authentic and inform them if there are any suspicious copycat fake accounts out there.

1. Never respond to folks who contact you unexpectedly: Although not every unsolicited opportunity is a scam you should be suspicious of offers made without prior contact. Transfers should be made through legitimate channels that offer customer service or the chance to report fraudulent conduct.

Furthermore when communicating with the customer or technical support via chat or email ensure that you communicate privately and only through official channels. Scammers may approach you through social media or by phone offering trade returns exclusive deals and other deceptive promises.

1. Think Before Paying in Crypto: Do your homework on who you send cryptocurrency to. Just as you would never transfer money to an unknown bank account you should only send cryptocurrency to a wallet that you or trusted third parties control. One easy question you might ask yourself is whether the other party appears to be a genuine firm or individual.

If they claim to be a business conduct a fast Google search to ensure they are a reputable corporation. You can see how long they have been in business whether they have positive reviews and whether they have a good reputation.

1. Stay away from Dating Sites: Scammers frequently use dating websites to trick naïve victims into believing they are in a genuine long-term relationship. When confidence is established discussions often shift to lucrative cryptocurrency prospects and the eventual transfer of money or account authentication keys. The Federal Trade Commission (FTC) discovered that almost 20% of the money wasted in dating scams was in bitcoin. Therefore prevent communicating on cryptocurrency and avoid using such sites.
2. Check the security of your cryptocurrency wallet: Suppose you are purchasing virtual currencies and putting them in a crypto wallet. In that case you should be sure that your digital wallet was created by a reliable organization with a proven track record.

You should avoid logging into your wallet on public wifi if you don't want to give your wallet credentials to anyone. Signing up for two-factor authentication is also recommended as is password securing your devices so that if someone steals your phone or laptop they will not be able to access your wallet.

Using numerous wallets and cold storage devices that are not linked to the internet can also be beneficial. If there is a breach you will not lose anything.

1. Make use of multi-factor authentication: Multi-factor authentication assures that even if a hacker obtains your login credentials they will be unable to access your wallet or cryptocurrency trading account because a code must be delivered to your phone or email before they are granted access. That is not going to happen. Receiving a code you did not request is also a red indicator that an effort has been made to compromise your account.
2. Keep a check on the URLs of websites: You should avoid entering your personal information on any crypto website that is not encrypted since this might lead to your personal information being stolen. Before attempting to log in check the web URL to ensure that it is accurate and begins with HTTPS rather than HTTP. If it does then you are on the right track. For more details you can do your research and know the legitimacy of the website.

Wrapping Up!

Cryptocurrency investment is already difficult because of its speculative and volatile character; don't make it more difficult by falling victim to frauds and schemes. Investors should understand when to open and utilize their cryptocurrency wallets and keep track of their wallet keys. They must exercise excellent digital security tactics such as strong passwords VPNs highly secure connections and much more. Hope that following the above ways and ideas to spot scams will help you fall prey. So get started safely within the cryptocurrency world from today and earn huge profits.