Understand how cryptocurrency scams work?

[Salauddin1994]

The number of scams in crypto has been there for a long time and now the number of scams is increasing with the increase in demand for crypto this is why you need to do a market analysis to understand how cryptocurrency scandals work. Will be crypto the reason why newcomers are more vulnerable is because they plan to work without knowing anything about the market so they are more vulnerable to avoid scams you need to know and learn about crypto well try to know all the information by analyzing the market.

[btc78]

That is not only for crypto scam that attitude and strategy is for general meaning scamming in all parts of the system either inside crypto or outside.

Never put your money in investing that you don't fully understand even How legit this is.

Take time to lean first so in case obstacles come then you know how to survive and knows what will coming next.
The problem in Many victims is they tend to Just look at the profit but not ready for the losses.

[icalical]

There is the same rule in all kinds of investment based business when a project or people offer something that is too good to be true, you need to be suspicious, it most likely scam. But since the raising of IEO I think it is easier to pick crypto investment. Just invest in a project that launch IEO on big Exchange, it less likely to be a scam.

[iTradeChips]

There were many such scams where these people try to get many profit from scamming people and I think it looks very easy if you think about it how these people are able to scam others, but of course easy in a sense you have to be good at talking to people to be able to convince them to give their money and invest it on the project. There are also those like Sushi coin that invested first on the hype and tried to get as much people as possible then do tactics that seems legit and will simply affect the coins price, and then blast off into space. By now many of us know a bit how they operate so we can ignore them and not support them.

[Silberman]

Another popular scam technique is called an "initial coin offering (ICO).

It's still a popular way to scam people, there are new projects coming out using ICO, but not all projects that does this are scammers right away, you have to figure out if they really are, some of them are copying other project's whitepaper and some employ fake profiles and fake credentials and they are lying about on their roadmap.

Things got so bad in 2017 that even today and I include myself among those people that anyone that listens to the word ico immediately assumes that any coin that is using that model is a scam, and even if it is unfair for the few coins that are legitimate you are going to be correct most of the time by using this thought process so I do not see why we need to change it when it has saved us a lot of money over the years by not investing in all of those scams which are floating on the market using that label.

[nrvasquez]

There is the same rule in all kinds of investment based business when a project or people offer something that is too good to be true, you need to be suspicious, it most likely scam. But since the raising of IEO I think it is easier to pick crypto investment. Just invest in a project that launch IEO on big Exchange, it less likely to be a scam.

Usually they do make really good promises and sometimes it make sense. but in the end they don't make it happen for some reason that obviously isn't a problem. The scam happened because it was planned from the beginning, and we can see it clearly from how the development of the platform they built, from their seriousness and other things.

[MCobian]

Based on my observations, cryptocurrency scams occur because many investors are not careful in choosing projects. There are still
many investors who are lazy to do research on the projects they want to join, and only believe in the opinions of others. Which other
people's opinion is not necessarily correct. As long as we do research on projects that we will join properly. Cryptocurrency scams
should be avoided, because scammers work by exploiting the weaknesses of their victims.

[abel1337]

There is the same rule in all kinds of investment based business when a project or people offer something that is too good to be true, you need to be suspicious, it most likely scam. But since the raising of IEO I think it is easier to pick crypto investment. Just invest in a project that launch IEO on big Exchange, it less likely to be a scam.

Usually they do make really good promises and sometimes it make sense. but in the end they don't make it happen for some reason that obviously isn't a problem. The scam happened because it was planned from the beginning, and we can see it clearly from how the development of the platform they built, from their seriousness and other things.

Scammers are getting better over the time and their methods are mostly like a legitimate project, Too good to be true offerings are the one that newbies and lazy people who don't research fall but a realistic project that pretends too good make the serious investors who made some research about the project fall. There are some obvious signs that can reveal that the project is fake/scam. Fake project team, counterfeit whitepaper, too good to be true returns are the good signs that the project is fake. Investing in an IEO doesn't make the project a scam proof investment. I believed that there are potential loopholes in IEO.

[Kong Hey Pakboy]

This is such a great summary. These are most of the things I experience throughout my first 2 years in crypto. It's a great share for anyone willing to start, just for them to avoid the usual bad scenario, but there's always a catch for the innovation, new ideas come, as well the scams/fraud trying to catch-up.

Just do the research first, or experience it first hand and get the lessons learned.

Experience is the best teacher to really avoid it, once we got scam hopefully not a huge amount we will be able to really dig in researching where to put our money but it's nice if we can avoid it as early as possible and listen to the people who already experience it, so the money that will be invested will really be able to gain profit if research is really done.

We do learn from our experiences and mistakes, but the best thing to do is we should learn from others mistakes that we usually read in this forum. So when we encounter the same situation we already know what to do and what not to do because scam and other illegal activities is everywhere in the crypto and blockchain space.

[ije07]

whatever it is about investing, be it projects or coins, it is highly recommended to always research in detail, such as the background of the team & Dev, especially experience in managing previous projects, what products they offer in the market, how big is the community & partners in inside etc. As an investor you need to manage finances properly and also not be greedy in taking profits.

[Silberman]

Based on my observations, cryptocurrency scams occur because many investors are not careful in choosing projects. There are still
many investors who are lazy to do research on the projects they want to join, and only believe in the opinions of others. Which other
people's opinion is not necessarily correct. As long as we do research on projects that we will join properly. Cryptocurrency scams
should be avoided, because scammers work by exploiting the weaknesses of their victims.

What happens is that scammers have a huge edge over legitimate projects, while legitimate projects have to worry about creating a working product, the price of their coin, the community and the promotion of their project and balance all of it at the same time, the scammers only have to worry about one thing and that is the marketing, they only care about promoting their scam as much as possible because they know they are not interested in building anything and just want to scam their victims so they can make any kind of unrealistic claims and unskilled investors believe in their promises and eventually lose it all.

[sapnu]

whatever it is about investing, be it projects or coins, it is highly recommended to always research in detail, such as the background of the team & Dev, especially experience in managing previous projects, what products they offer in the market, how big is the community & partners in inside etc. As an investor you need to manage finances properly and also not be greedy in taking profits.

There are actually lots of scam projects since then, there are also lots of people being scammed. That is the reason why we should really take some information about the project first before taking part or supporting that, since your own money is involved, once you've sent it to them and they intended to scam people, you have nothing to do with it. Knowledge and understanding are important before you invest because not all projects are scams. There are some people who really want to take advantage of your ignorance so be aware.

[tippytoes]

whatever it is about investing, be it projects or coins, it is highly recommended to always research in detail, such as the background of the team & Dev, especially experience in managing previous projects, what products they offer in the market, how big is the community & partners in inside etc. As an investor you need to manage finances properly and also not be greedy in taking profits.

There are actually lots of scam projects since then, there are also lots of people being scammed. That is the reason why we should really take some information about the project first before taking part or supporting that, since your own money is involved, once you've sent it to them and they intended to scam people, you have nothing to do with it. Knowledge and understanding are important before you invest because not all projects are scams. There are some people who really want to take advantage of your ignorance so be aware.

Scam projects will persist as long as there are people patronizing it. I know it is hard to know if the project is really legit or not, especially during its early days, but you need to check for warning signals if you are serious in investing your money to them. I have experienced also with ICO failure before. Even if I searched and read about its background, team member published and endorsed by known user here, still the project failed and lost my money. Couldn't call it as a scam as their platform just didn't have success in the market. But you can't get your money back.

[1l1l11ll1l]

I see many people offering the same scheme mostly in province where Bitcoin is not so popular and not known they explain about Bitcoin and how the price increase that way . And then offering investment to earn bitcoin or other coins that they say that can be a Bitcoin someday in their explanations. The most victim they had is those people who doesn't even know what Bitcoin is and no knowledge how it's actually works.

This is a classic scheme. She worked 20 years ago. Each time, only the object changes, which is represented in the form of an economic miracle that will bring you mountains of gold.
In the past, these were stocks and various bonds, now it is a cryptocurrency. It is easy to explain to people what they can earn by the example of how bitcoin grew from 0.1 to 20,000.

is this some kind of mlm scheme? I can't believe people will still buy his brag. what I mean is we have internet access, at least do some research or learn a little about bitcoin. but if this happens, I hope that no one will be affected by this kind of scam anymore, most of them are old people and will probably use their money for old age

[Willitivity]

There is no direct or concise manner in which crypto currency scam works; there are different methods employed in the past; and different methods emplpyed today; if we bring into consideration both events; they are different from one another. So how do you avoid crypto currency scams in the future ? AVOID It totally.

Well said mate, scammers don't normally make use of one pattern all the time, they keep evolving and changing their scamming methods since investors are becoming smarter nowadays, scammers are always looking for a new way to make whatever ponzi scheme they are running look real and catching to investors, for me the best way to avoid scam is to stay away from anything that seems too good to be true, any hyip or project that promise insane returns is a red flag for me,also investors should stop looking for the next bitcoin.

[Banulit]

Maybe the main reason why people falls to easily to crypto scams is because of the fake/false promises that they promise to mostly new to this crypto industry. Also, one reason why people get into fraudulents is because of too much greed which lead them of getting scammed. Nonetheless, always bear in mind to be more vigilant and cautious in anything that you do in this cryto industry to avoid becoming a victim.

[ife2020]

May we not fall victim to fraudulent crypto currency scams because there is no single module of operation, just recently there are rumors of emporium finance developers eloping and abandoning the project after a good trading and high price spree, betraying the Bounty hunters and also their investors. While we also have projects that exitscam immediately after token sale

As investors we just have to stay alert to ensure that we do not invest wrongly. Always do your own research

[nrvasquez]

The scam works very simply. You are promised that your investment will be multiplied, and you are asked to pay for it. Then you are shown a presentation of how everything will work, but for those who just want to increase their money, this is not important. This means they will not critically look at what they are shown, they will be eager to make a profit sooner. And in the end it all collapses with a big ass. The only question left is "where is my money"?

"Make profit faster" has always been a shady promotion. and most newbies are often caught in this. If a crypto offers unrealistic profits and no development or no team backing up behind it, the project will usually end up being a scam and you will lose your investment.

[DeadCoin]

in history, many have been frustrated especially, newbies, Who Assess that scam, perhaps it is a cause to don't think something for build-up porpuses when participating in any crypto projects, as long as we have a newbie, all scammers are happy right' so that it is easy to use for their investment scam as a counterpart with a good project, instantly it is hard to elide and still work behind, therefore, in progress, cooperation with others before we enter are the best answer with this matter to prevent scams work.

[Silberman]

There is no direct or concise manner in which crypto currency scam works; there are different methods employed in the past; and different methods emplpyed today; if we bring into consideration both events; they are different from one another. So how do you avoid crypto currency scams in the future ? AVOID It totally.

Well said mate, scammers don't normally make use of one pattern all the time, they keep evolving and changing their scamming methods since investors are becoming smarter nowadays, scammers are always looking for a new way to make whatever ponzi scheme they are running look real and catching to investors, for me the best way to avoid scam is to stay away from anything that seems too good to be true, any hyip or project that promise insane returns is a red flag for me,also investors should stop looking for the next bitcoin.

This is why it is important to not let yourself be enchanted by their words and try to look at things from a logical point of view, if a scammer is offering big returns if you invest with them then why they just do not ask for a loan to bank? It will be easier and faster than trying to obtain money from people and he will obtain profits for himself and he will not have to reveal the method that he has, the truth is they cannot do what they say they can and they are only saying it to see who falls in their scam.