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How to identify and avoid SCAM?

Different cryptocurrencies are becoming more and more popular all around the world. They are considered a good investment that could gain huge profits. Unfortunately, there is also a risk involved in these investments. Besides the instability of the market, there are other scams online and if you are thinking about making such an investment, you should choose carefully. 

What is scam?

Online criminals take advantage of the rising popularity of cryptocurrency, and use different tactics to fraud crypto investors.

The cryptocurrency scam is an investment threat, where criminals steal money from cryptocurrency investors. As most crypto assets and other crypto services are not protected by the Financial Service Compensation Scheme, it is likely that if you become a victim of such fraud, you won’t receive your money back.

Types of crypto scam

Celebrity endorsement

Using popular people's images is a common type of online fraud. Crypto scammers create adverts using celebrities names and photos, to promote their investment. Their target is people on social media.

Fraudsters create professional-looking websites and fake accounts, manipulated with software. At the end, it seems as if an investor is making a return, so more users are encouraged to invest more money.

Criminals disappear at the moment, the first payment is received and investors are left empty-handed.


Phishing is another popular online fraud that takes a lot of victims. Scammers contact users via email, offering an amazing crypto investment opportunity. 

Again, users are led to a professional looking website with more information about the investment opportunity. 

Sometimes, investment can be done in crypto and others - in traditional currency.

The website is closed when the investment is made. Criminals close any communication with the investor and often take down the website.


This is the type of scam, when criminals pretend they have created a new cryptocurrency, promising it is going to be huge. Scammers launch the new crypto platform and raise money from investors. Scammers disappear the moment when enough money has been collected. This can go for a long period of time, but the end result is always the same - criminals vanishing  with the investors' money.

Cloud mining

Most cryptocurrencies are created with the so-called mining, which requires expensive hardware and uses a lot of electricity. 

The new wave of cryptocurrency mining allows users to mine crypto, without the need of expensive computers. Scammers take advantage of this, setting up a cloud mining software platform that steals the crypto from miners. 

How to identify a crypto scam?

The website

Everyone can become a victim of a cryptocurrency scam, even when following tips from someone with a lot of expertise. The number of fake websites, set up to match the original, is huge.

To assure that the website is trustworthy, look at the URL bar and search for the security icon. If it’s “HTTP” and not “HTTPS”, you may want to think twice before trusting the platform.

The website may look the same as the original, but you may be directed to another platform for payment.

Mobile app

Fake mobile apps are another way scammers take advantage of crypto investors and their funds. As any other app, these are available for download through Google Play and App store.

These apps are often found and removed by stakeholders, still thousands of people have already been scammed by them.

Social media

A lot of fake accounts are available on social media, and you must assure, you are not following one of them. Do not trust every offer, coming from Facebook or other social media, especially if it seems too good to be true.


Emails from cryptocurrency scammers often look like the one from a legitimate company. Before you invest your currency, look if the email is the same, if the logo and branding is identical, etc. Never click on a link, attached in the message and if there is even a little doubt about the email, make a research, before trusting it.

How to avoid crypto scam?


Investing in cryptocurrencies needs a wallet and private key. One way to identify and avoid crypto scam is, if the firm asks you to share this private data with them. This is almost certainly a scam.

Cold calls

If you receive a call, out of nowhere, offering an amazing crypto investment opportunity, it is most possibly a scam. Be careful and protect your personal information and money.


Cryptocurrency scam often comes with a promise for a huge profit from your investment. If it sounds too good to be true, it is more likely a fraud. One of the keywords used in these scams is “guaranteed results” or  “high returns”. 


Making an investment in crypto takes time and research. If someone is pushing you to make a quick decision, it is probably a scam. 

Investing money in a cryptocurrency may seem like a good opportunity for future profit, but you really shouldn’t do it, if you don’t understand how it works. Investing in virtual currencies hides lots of risks, and scammers are just one side of it.

Take your time, do research and be careful with your funds if you want to make the best of a cryptocurrency investment.

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