Cryptocurrencies have received a lot of attention as a new way to invest. But the thing is, scammers are taking advantage of what people understand or don’t understand about cryptocurrency investments and how they work. And the youngest is losing big. If you are interested to know what is a better investment for the future would be, then read further.
Cryptocurrency investment scams can occur in some ways, but they are all rife with false promises and false guarantees. Scammers can set up real-looking investment sites, but you’ll find out later that you can’t withdraw the money you “INVESTED”. Others pose as famous people, such as an alleged Elon Musk, and hand out generous statements of multiplying any type of cryptocurrency you send. Scammers also use online dating websites to convince people to make fake crypto investments in the name of love.
Before getting into the matter, we must point out, in case the doubt arises if the cryptocurrencies themselves are a scam or a reality, Bitcoins like other current cryptocurrencies do not have to be a hoax and, operating with them does not have to contain risks It is often a matter of applying common sense and being well informed.
That is why always before starting to navigate through waters that we do not know, it is important to inform ourselves, investigate and educate ourselves on the subject that we are going to venture into, the more we know about how cryptocurrencies work, the less likely we will be deceived.
Scammers are always looking for ways to steal money using cryptocurrencies. Here are some of the cryptocurrency scams to watch out for and which happen to be the most common:
- Investment scams and business opportunities
- Blackmail by email
- Social media scams
To detect scammers, you will find these types of statements:
- Scammers guarantee that you will earn money. When they promise that you will make a profit, it is a scam.
- Scammers promise high returns with guaranteed profits. Nobody can guarantee a certain profit, for example, doubling your money. And much less in a short period.
- Scammers promise free money. They will promise you in cash or cryptocurrency, but the free money promises are always false.
- Scammers make great statements without details or explanations. Smart business people want to understand how their investment works and where their money is going. Good investment advisers want to share that information.
A scam is the most used system to snip cash to people using shams compared to other ways of stealing money.
The cryptocurrency market does not adequately control to keep people safe from scams. Consequently, many people have started investing in crypto assets as a form of future investment; malicious people are the order of the day to organize their scams through a pyramid or multi-level methods.
When users start investing in cryptocurrencies, they must appropriately advise to choose the right Exchange and not take risks of this type.
Bitcoin scams are profitable because for a while they have been very popular and to this day they are still one of the search trends on Google. In addition, as time passes and its value increases, more money can be made with this cryptocurrency or one of the others that exist.
Below are just three of the biggest crypto scams as of 2020:
BITCHAIN is an example of a Spanish cryptocurrency scam. The fraud was exposed in 2018; the brothers Jordi and Miguel Alcaraz founded this company to install a whole network of ATMs for this cryptocurrency throughout Spain. For this, they achieved Support from ESADE and the Ferrocarriles de la Generalitat.
MILTON GROUP, which is still being investigated by the police to this day, used social networks to capture its victims. Through ads in which they promise to multiply your investment in cryptocurrencies, they get the victim’s phone number, whom they constantly call to sell the benefits of their platform, promising that they will earn more than what is invested.
ONECOIN functioned like a pyramid scheme, presented itself as the competition of Bitcoin in 2016. In addition, through other platforms such as OneLife, OneAcedemy, and OneWorldFundation, the first two alleged educational packages on cryptocurrencies were sold, and the third presented itself as an organization charitable for children.
