1. Twitter Frauds
Recently, one of the most common ways for the scammers to trick investors is by Twitter. Many fake accounts have lately attack Twitter with tweets giving assurance of gaining 10x returns.
2. Market Manipulation
Sometimes regulation can be considered as a good thing, mainly when it protects the vast majority of people. Such trading regulations prevent scammers with large bankrolls from taking the market into control and scamming regular investors to open/close positions. Being present, these regulations usually help investors from getting tricked, easily finding out the most common market manipulations.
3. Fake Buy/Sell Walls
The buy/sell walls will not affect you, unless you usually base your trades on chart analysis. You can easily identify a wall when you look at the depth chart of an order book. On this point, as the name tells itself, a wall usually consistently appears as a high wall just on one side of the order book, most times 2-5x larger than the other side.
4. Pump and Dumps
Pump and dump groups’ strategy is to artificially pump the value of a particular coin right before dumping it on the investors who got fooled and thought the chances of gaining more were very high. In industries where 50% gains in a month are easily attained, it’s weirdly amazing how still pump and dump (P&D) groups even exist.
5. Paid Promotion
Even though we might think that many well-known figures of cryptocurrency might be on our side, many of them are usually paid to promote coins in the cryptosphere. Whenever these endorsers are paid to promote various projects, they are required to reveal. Right now, there is no force towards them to do so and they rarely do.
6. Shady/Shoddy Exchanges
Knowing that some exchanges are vulnerable to hacks, some having questionable management practices, others having security flaws, it is very risky to keep your digital assets on these exchanges. Consequently, we recommend to keep your coins in a wallet, such as the Trezor or Ledger Nano S. Also, even when you store your coins in a wallet, you should be cautious when trading on exchanges.
7. Phishing Attacks
One of the most common cryptocurrency scams are “Phishing attacks”. Phishers commonly purchase domains and Google ads imitating popular exchanges. The fact that the fake website looks alike with the real one- once you enter your credentials, the fake site directs you toward the correct platform, therefore, you get stolen, and your account gets empty. To not be a part of this scam, make sure you always type the exchange URL directly into the address bar. More importantly, you should have some type of 2-factor authentication enabled for all of your accounts as well.
Source:
https://www.google.com/amp/s/ethereumworldnews.com/beware-avoid-these-7-cryptocurrency-scams-happening-right-now/amp/
