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Motivated by the increasing number of inquiries and a constant growth of different kinds of various Internet scams under the disguise of cryptocurrencies, we have decided to describe several of the most notorious scams with the purpose of education and prevention of future scams.
Motivated by a large number of inquiries made by our users, we decided to give you an overview of the most recent scams in the crypto world.
In this article you will find details of most common scams and suggestions on how to react on a potential scam.
Although they are highly volatile, cryptocurrencies are interesting to a wide group of investors. Unfortunately, scammers use the popularity of cryptocurrencies to steal money, especially from beginners in cryptocurrencies.
Cryptocurrencies provide many advantages compared to the traditional financial institutions. One of these advantages is transparency. Blockchain transactions are completely transparent and easy to identify.
But, before starting to use digital wallets or executing first crypto transaction, it is necessary to educate yourself. The education is the only way to prevent becoming a victim of a scam.
If you are a person who doesn't have much of a technical (or informatics knowledge) background, you should think twice before doing any crypto transaction.
People who have trouble understanding technology are the the most common scam targets.
If you are a beginner in cryptocurrency trading you can book an appointment in one of Bitcoin Store exchange offices. Our professional staff provides a basic training on how to use the platform as a beginner and teaches users about basic crypto terminology.
Bitcoin Store will never offer you or try to give you any financial advice.
Most common scams:
- Pyramid scheme - the only people who earn money are the so-called founders and first cycle of investors. the pyramid is financed from payments of new investors. As long as the cash flow lasts, the scheme will exist. Ponzi scheme operates in a similar way.
- False promises and guarantees of large profits without risks.
- Complex and incomprehensible investment structures, which can't be easily checked.
- Failure to comply with the time limits for product delivery terms.
- Unsustainable daily percentages of investment return.
- Project sounds too good to be true.
General instructions:
- Never invest more money than you can afford to lose. The worst option you can do is to raise a loan to invest in high-risk markets. It is important to rationally distribute investments, depending on the risk you are willing to take.
- Use only verified crypto exchange platforms.
- Educate yourself before making any investment decision.
- Look for opinions on several independent sides.
- Never make an investment based on someone's opinion or "hunch".
- If it sound and looks too good to be true, it probably is.
A significant number of elderly people contact us regularly with inquiries on vouchers, packages or gift cards, which they bought online. These vouchers supposedly contain a certain amount of units of one of the cryptocurrencies (most often are Ripple (XRP) and Tron (TRON) coins).
People buy these "vouchers" via pop-up ads on their favorite websites. After the purchase, buyers receives an envelope on their home address. The envelope usually contains a welcoming note with the so called voucher or gift card with some amount of cryptocurrencies.
Bottom line is, these type of vouchers are worthless.
There are plenty of scam websites that use this type of scam. So, when you see that someone mentions vouchers or gift cards, you should know that it's a scam.
The purpose of cryptocurrencies is to ease transactions and make them direct. Using vouchers only complicates everything.
If someone contacts you and tells you that Bitcoin Store offers vouchers or any type of rewards, you can hang up the phone or ignore the email. Bitcoin Store never offered vouchers, and is not connected in any way with these scam attempts.
This is why we put a lot of effort to educate our users. Once you invest money in a scam, we can't help you to return the money. Only thing you can do is to report the scam to the institutions.