With the new year comes new budding investors, many of which may have begun looking to expanding their portfolios into digital currencies – cryptocurrency. However, with every fresh and wide eyed investor leaves opportunity for scammers to catch-out unsuspecting people into parting with their money.
Experts from dappGambl want to educate new investors on the most common cryptocurrency scams which they may be targeted with as well as provide some helpful tips to protect them from these scams.
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5 Common Scams New Investors Should Be Aware Of When Looking To Invest In Cryptocurrency
Crypto influencers are problematic because they promote tokens they own and then dump them on their followers. This is an issue because the industry is not regulated, making it easy for influential people to take advantage of their public perception.
Fake ICOs And Cryptocurrency Investments
There has been a recent trend of fake ICOs and cryptocurrency investments. Many people have been scammed out of their money by fake companies that promised high returns. Some of these companies even used fake celebrity endorsements to trick people into investing.
There are a few things that you can do to avoid being scammed. Do your research, make sure that you understand what you’re investing in and that the company is legitimate.
Beware of anything that sounds too good to be true, if a company is promising extremely high returns, it’s probably a scam. Finally, don’t invest more money than you can afford to lose.
Cryptocurrencies can be risky investments, and you could lose your money if the market crashes. If you’re thinking about investing in a cryptocurrency, make sure that you do your research first to avoid being scammed.
Malware And Ransomware Attacks
Malware and ransomware are two of the most common cyber threats facing businesses today. Malware is a type of software that is designed to damage or disable computer systems, and ransomware is a type of malware that encrypts data and demands a ransom for its release.
Both malware and ransomware can have devastating consequences for people, causing data loss, financial damage, and reputational damage. Despite the risks, many fail to invest in adequate cybersecurity measures to protect themselves against these threats. As a result, malware and ransomware attacks are becoming increasingly common.
In order to protect yourself, it is essential to invest in robust cybersecurity measures such as firewalls, antivirus software, and education on the topics. You should also have a plan in place for how to respond to an attack if one does occur.
Bitcoin Mining Schemes
In the early days of Bitcoin, mining was performed by individual computers running the Bitcoin software. As the network grew and the difficulty of mining increased, it became necessary to use specialized equipment known as ASICs.
These ASICs are designed specifically for mining Bitcoin, and they are much more efficient than general-purpose computers. However, they are also very expensive, and their high cost has made Bitcoin mining increasingly centralized. Today, the majority of Bitcoin mining is performed by large organizations with specialized hardware.
A mining scam refers to scammers tricking people into buying cryptocurrency to use in order to mine more of it, when in actual fact, there is no mining happening whatsoever. The scammer simply makes transfers to make it look like the victim is getting a return on investment, but eventually, the victim invests more and the scammer stops making transfers to eventually keep it all.
Phishing scams are a type of online fraud that has been on the rise in recent years. These scams typically involve an email or website that appears to be from a legitimate source, but is actually a fake. The goal of these scams is to collect personal information, such as credit card numbers or login credentials.
In many cases, phishing victims will click on a link that takes them to a fake website, where they are then prompted to enter their personal information. Once the scammers have this information, they can use it to make unauthorized charges or access sensitive accounts.
Phishing scams can be difficult to spot, but there are some red flags to look out for. Be suspicious of any unsolicited emails or websites that ask for personal information. Also, be sure to check the URL of any links before clicking on them. If you see anything suspicious, do not hesitate to report it to the proper authorities.
4 Simple Ways To Protect Yourself From Cryptocurrency Scams
Eugene Abungana, cryptocurrency expert at dappGambl, has provided four key tips that people need to be aware of in order to protect themselves: “Cryptocurrencies have become a popular way to invest and trade online, but they have also become a target for scammers. There are a few things you can do to protect yourself from crypto scams.
- DYOR – Always do your own research to make sure that the project, crypto, exchange, wallet or dApp you are dealing with is trustworthy. Do not jump on something out of emotion.
- Be cautious of any persons trying to contact you. Do not open any links or files.
- Make sure the website address is correct.
- Remember that you are responsible for your own security; don’t give away your personal information or private keys to anyone. By following these simple guidelines, you can help keep your crypto investments safe from fraudsters.
Cryptocurrency scams are becoming more and more common. There are many different types of scams, but they all have one goal: to steal your money. Everyone who wants to trade crypto should be aware of the different types of scams in order to protect themselves from them. Knowledge is power!”
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