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How to avoid a crypto scam

There is a problem with scams in the crypto world. That shouldn’t be a controversial thing to say but, of course, in any sector that is unjustly accused of being a scam per se, people do get defensive. We should, nonetheless, be unafraid to state that yes, scams happen in the world of crypto, as they do in literally every other financial sector in the world, and that the only way to defend the positive impact that crypto can have in the wider world is to recognize a scam when we see one, and know how to call it out and shut it down.

When you have a means of financial transfer that is outside the reach of middlemen, which allows people in restrictive jurisdictions to access online services and betting sites, and can be a lifeline to people in wartorn countries, it is a duty to know when you’ve seen a crypto scam and to share that information with other people who might fall victim to it. So let’s look at a few types of scam that are targeted at people in the crypto sphere, and talk about how to face them down.

Team scams

When a group emerges inviting you to join their crypto revolution, telling you that for a low entry fee you can become part of their investment project, it is a good idea to evaluate each and every member of that team for the value they can add to a project. Sometimes, there will be people involved that have a very sketchy track record filled with missteps and outright fraud. Those team projects are easy to call out as scams. To go further, if a team invites you on board and you can’t find out anything about their members’ past records, it’s best to stay away. Either they’re hiding a problematic past, or they can’t demonstrate reliability.

Fake investment websites

It’s not uncommon to see ads on search engines or, more commonly, social media that invite you to an airdrop or an investment opportunity, usually on behalf of an established company that you’d be inherently likely to trust. When you visit the website you’re linked to, your details are harvested and you’re targeted for identity fraud. Often, the scam is very slick and looks realistic, but there is one clear way to get to the bottom of it. If a major company is running a giveaway or a great investment opportunity, they won’t be shy about it. The company itself will tweet about it and probably feature it on their home site too. If you scour their socials and their site and no such project is mentioned, it’s a scam. Sound the alarm.

Celebrity endorsements

A celebrity-endorsed crypto project is not necessarily a scam, but so many of them are that in all honesty at this point it is better to assume it is a scam and miss out than take the risk. Celebrities endorse projects that are willing to pay them, and if someone needs to be paid to promote an investment opportunity then that should be seen as a hint that the investment itself is not the safest one you could make. If the investment is worth making and as sure to pay out as they’re suggesting, then just the opportunity should be enough. People who are already millionaires have nothing to lose by being involved with scams. It’s you that’s likely to end up carrying the can.

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