Today, everyone wants to be a part of the crypto ecosystem. But as much as this domain is lucrative, there are certain roadblocks, like the price volatility and scams that can impact your investment move. You, too, can make an investment in it and avoid the risks by being aware.  Each cryptocurrency stock market uses a specific set of algorithms or blockchains for the secured transaction. In the last decade, more investors have started considering bitcoins as an investment option with high potential. Like the regular form of currency, cryptocurrencies are also associated with scams, no matter how secure their blockchains are.

Bitcoin is highly volatile. With no centralized authority controlling this digital currency, different scams are coming up to dupe investors. If you are taking an interest in cryptocurrency investment, you must know that cryptocurrency transactions are irreversible. If you transfer cryptocurrency to an account, you cannot retrieve it. So, it is essential to check if you are using a legitimate and secure platform for your Bitcoin transaction. One such platform is

Types of cryptocurrency frauds and how to avoid them

1.Technical support scam

Scam customer support phone numbers are set by fraudsters, and they impersonate popular telecom, retail, tech, finance, and service industries. These phone numbers allure victims who need assistance. The victims are asked for personal information, which they provide and fall into the trap.

How to avoid

  • You should never give anyone, including your support staff, remote access to your machine.
  • You should not give your 2-Factor authentication code or password to anyone. No reputed transaction cryptocurrency platform asks for such sensitive credentials from you.
  • You should never send cryptocurrency to any external address on behalf of these fake support agents.

2.Giveaway scams

Scammers also use social media to allure investors or traders with giveaway scams. They keep posting screenshots or fake messages, impersonating reputed companies and sending giveaway links that are fraudulent. When you click them, these fraudulent websites may ask you to verify your address, and your cryptocurrency will be transferred to fraudulent addresses.

How to avoid:

  • You should never fall into the trap of addressing verification messages sent by giveaways and sending your cryptocurrency to these websites.
  • Generally, it is better to always avoid all types of giveaways or reward offers on social media.
  • You should check the giveaway URL.
  • You must report any fraudulent attempt to the respective authority.

Investment scams

You may also get different investment schemes on social media. They promise you higher money returns without any financial risk. These schemes may ask you to refer many more people to the scheme. Such pyramid and Ponzi schemes are common types of cryptocurrency schemes.

How to avoid

  • You should never pay heed to these websites or schemes that promise to give back high returns for your investments.
  • You should transfer your cryptocurrency only to a trusted third-party transaction platform.
  • With many cryptocurrency transaction platforms available on the web, you should research the organization thoroughly to verify its authenticity.

3.Employment scams

Scammers take the opportunity to impersonate recruiters and post fake job offers on social media platforms. Job seekers post their resumes and fall into these traps. The job seekers may be asked to send money for some training course related to the job and also for personal information.

How to avoid

  • Before you send your credentials to these websites and send money for any training, you must check the authentication of the website. Avoid clicking any job offer link without verification.

4.Extortion scams

Often fraudsters send you the mail with photos or other information and try to extort money by blackmailing you. For example, they may show your old password to assure you they are a legitimate website.

How to avoid

  • If you get any such mail, immediately inform your email provider
  • You should load a precautionary malware scan on your system, which can identify a fake website immediately
  • If you get an email that mentions your current password, immediately change your password.

There are a number of trustworthy cryptocurrency platforms. If you have any doubt regarding a mail or phone call from any of these trading platforms, you can call their customer support and seek help.