The Most Common Cryptocurrency Scams New Investors Should Be Aware Of – ValueWalk

With the new year comes new budding investors, many of whom may have started looking to expand their portfolios in digital currencies – cryptocurrency. However, with every new and wide-eyed investor, scammers have an opportunity to trap unsuspecting people into parting with their money.

experts from dappGambl want to educate new investors about the most common cryptocurrency scams with which they can be attacked, as well as some useful 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

1. "Crypto Influencers"

Cryptocurrency influencers are problematic because they promote tokens they own and then toss them around to their followers. This is a problem because the industry is unregulated, making it easy for influencers to take advantage of your public perception.

2. 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 bogus companies that promised high returns. Some of these companies even used fake celebrity endorsements to trick people into investing.

There are a few things you can do to avoid being scammed. Do your research, make sure you understand what you are investing in and that the company is legitimate.

Beware of anything that sounds too good to be true, if a company promises extremely high profits it is 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 are considering investing in cryptocurrency, be sure to do your research first to avoid getting scammed.

3. Malware and ransomware attacks

Malware and ransomware are two of the most common cyber threats facing businesses today. Malware is a type of software 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 do not invest in cyber security measures to protect against these threats. As a result, malware and ransomware attacks are becoming more common.

To protect yourself, it is essential to invest in strong cybersecurity measures, such as firewalls, antivirus software, and education on the issues. You should also have a plan in place for how to respond to an attack if one occurs.

4. Bitcoin mining schemes

In the early days of Bitcoin, mining was done by individual computers running Bitcoin software. As the network grew and mining difficulty increased, it became necessary to use specialized equipment known as ASICs.

These ASICs are specifically designed to mine Bitcoin and 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, most Bitcoin mining is done by large organizations with specialized hardware.

A mining scam refers to scammers who trick people into buying cryptocurrency to use to mine more, when in fact, there is no mining at all. The scammer simply makes transfers to make it look like the victim is getting a return on their investment, but eventually, the victim invests more and the scammer stops making transfers to keep it all.

5. Phishing scams

phishing scams they are a type of online fraud that has been on the rise in recent years. These scams usually involve an email or website that appears to be from a legitimate source, but is actually fake. The goal of these scams is to collect personal information, such as credit card numbers or login credentials.

In many cases, phishing victims click on a link that takes them to a fake website, where they are then asked to enter their personal information. Once scammers have this information, they can use it to make unauthorized charges or access sensitive accounts.

Phishing scams can be hard to spot, but there are some red flags to look out for. Be suspicious of any unsolicited email or website that asks for personal information. Also, be sure to check the URL of the links before clicking on them. If you see anything suspicious, don't hesitate to report it to the proper authorities.

4 Simple Ways to Protect Yourself from Cryptocurrency Scams

Eugene Abungana, cryptocurrency expert at dappGamblhas provided four key tips that people should keep in mind to protect themselves: “Cryptocurrency has become a popular way to invest and trade online, but it has also become a target for scammers. There are a few things you can do to protect yourself from crypto scams.

1. DYOR – Always do your own research to ensure that the project, crypto, exchange, wallet or dApp you are dealing with is trustworthy. Don't jump on something out of excitement.
2. Beware of anyone who tries to contact you. Do not open any links or files.
3. Please make sure the website address is correct.
4. Remember that you are responsible for your own safety; do not give your personal information or private keys to anyone. By following these simple guidelines, you can help keep your cryptocurrency investments safe from scammers.
   

Cryptocurrency scams are becoming more common. There are many different types of scams, but they all have one goal: to steal your money. Everyone who wants to trade cryptocurrency should be aware of the different types of scams in order to protect themselves from them. Knowledge is power!"

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