No good financial advisor would advise you to haul your hard earned money into cryptocurrency investment without making you know the risk potentials of Cryptocurrencies. Read through this article to know what we meant by that. Our pointer to Cryptocurrencies is an allure of easy money, and for those who are well screened and knowledgeable about the cryptocurrency trades and the risks involved.
Cryptocurrencies had been investigated to be full of risks that may be associated with scams or dearth of the token’s existence. At a point in time, we talked crypto investment as not investing but simply gambling. Cryptocurrency is very volatile and has no intrinsic value or whatsoever. We would not advise you to gamble your way in the casino as part of your financial plan and diversification strategy in investing as and so as cryptocurrencies.
Surprised? Don’t be. Any money invested in cryptocurrency should be expected to be lost as soon as possible if you don’t realize risk potentials earlier than better. 90% of the cryptocurrencies out there are full of deceit or scams. If you actually think you want to make your way with cryptocurrency, read to the end to understand why you should avoid or how to avoid crypto scams.
Do you know what rug pull is? A rug pull is a term used to refer to a crypto scam where the development team pumps their project’s token before disappearing with investors’ funds. You can spot rug pulls with the below methods;
1. Notice liquidity stealing
When project owners ‘steal’ all their coin’s liquidity pools, this extracts the entirety of the value injected by investors and spirals the price of the project down to zero.
2. Limitation of sales order
The developer maliciously codes the backend of the project tokens to trap innocent investors. They code it such that only the project owners are able to sell their tokens. Once there is enough price action, project owners dump their positions. The quid token and onecoin scams are great examples.
3. Dumping notification
When developers or insiders ‘dump’ a large supply of their own tokens that result in the token price going down to zero, rendering the token worthless. These are common rug pulls and they are often used in pump & dump schemes.
We’re currently running a cryptocurrency scam and CSI investigation, help us with our researches by sending mails about your experiences with cryptocurrencies to wettmint@hotmail.com or wettmint@outlook.com
Other cryptocurrency scams you should be aware of are;
1. Investment or business opportunity scams
2. Imposter or impersonation & social engineering
3. Fake ICOs (Initial Coin Offerings)
4. Phishing
How to identify crypto scams
1. Promises of guaranteed returns
2. Check the whitepaper of each tokens
3. Use legit wallets like coinbase, robinhood etc
How to avoid crypto scams
1. Never give out your 2FA (2- factor authentication)
2. Never give anyone remote access to your machine
3. Beware of social media adverts
4. Do your researches
5. Don’t trust everyone. Don’t take any information at face value.
6. Protect yourself from hackers
7. Never mix online dating and investment advice
Here comes the end of this bout. We hope you’ve learnt how to avoid crypto scams. And, if you want to know more about cryptocurrencies, check our label “CryptoCurrencies”. Thanks to y’all for your supports.
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