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Three Common Types Of Cryptocurrency Scams And How To Avoid Them

The world of cryptocurrency just keeps getting bigger and bigger. Everyone wants to get into it. It is one of many ways to earn a lot of money. A lot of people have actually become millionaires through crypto. Bitcoin, Ethereum, Usdt are some of the major names in the field.


But like everything that exists, there is a bad side to the world of the cryptos. A major dark side is scams. Frauds exist in so many aspects of life where finances are concerned and it is perfectly understandable that it is in the cryptocurrency world too. I will be sharing some types of scams involved in cryptocurrency and how to detect them below.


Number one is Airdrop and presale. Who doesn't like free things right? Especially when it's something that could make you rich in a while. Airdrop events have been successful in the past years. However these days most people use it as a means to take instead of giving. Fraudsters create websites and tokens which are fake and present them to the public. They then proceed to sell them at low prices which are taken in the form of older cryptocurrencies such as Ether or BNB. Airdrops are promised too but once the needed amount of fake tokens are sold, the fraudsters disappear with your crypto. This type of scam is widely done by technological experts.


Another scam involving cryptocurrency is investment trading. This is a situation in which you trust someone with your money in forms like Bitcoin and expect them to trade on the crypto market to make profit. Sometimes there are legit traders but mostly scammers take up these positions. You are linked with them on social media platforms especially Facebook and they convince you to take the risk. When you finally do send them the money to trade on your behalf, they cut off all connections with you.


The last kind I'll be talking about today is sharing of wallet addresses and private keys. Every crypto has a wallet address in which they are kept. The easiest way scammers get your crypto is by hacking these wallets. There have been a lot of hacking when it comes to cryptocurrency wallets in the past. A way to avoid this is by never sharing your crypto address to someone you don't trust and keeping all transactions on your crypto wallet application.


I hope this helps us all to be careful when it comes to this amazing world of cryptocurrency.

Content created and supplied by: MrNewsMan (via Opera News )

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