Common digital currency scams and how you can avoid them

Cryptocurrency has been able to bring huge changes in the economy nationally and globally. The cryptocurrency is stored on a network, and hence, it becomes open to all, including the digital scavengers. There are many scams reported regarding cryptocurrency as scammers are always on a hunt to find new ways to make money, and most of the time, their ways are not the ethical ones. Moreover, the growing opportunity in the digital currency sector has drawn all their attention in recent times. Begin your crypto trading journey after vising the Bitcode Prime Official website to completely understand the market.

According to a survey, in 2021, the computer currency industry has witnessed record-breaking scams and frauds. The scammers have been able to steal around fourteen billion dollars only from cryptocurrency. To know more about these scams and frauds, continue reading.

Hoax websites

Scammers and digital scavengers are always on a constant hunt to steal funds and computer currency available on the internet network. They find loopholes and try o take full advantage of all those loopholes. They try their level best to rob people of their assets. These fraudsters created many fake websites and links, and this technique is still prevalent. They have created many fake online platforms like real trading platforms. They try to cheat the people, and when they deposit their money, they lock it up, and suddenly the website stops working.

Now, these websites might appear similar to the real ones. However, their links and domains are quite different. There can be two ways these websites can make you the victim of their evil deeds. They can ask you to enter all your details, such as your crypto wallet’s password, recovery phrase, and essential details. They would later use it to access your account and access all your financial information. Another method is where they give you some initial amount for free to ignite greed, and later when you invest more, they will take your money and digital currency and run away.

Read my post on disadvantages of bitcoin

Pump and dump methods

The pump and dump method is a new way of robbing people where these fraudsters create hype over a certain coin or token. They create this buzz around the traders or potential traders through emails, Instagram advertisements, Facebook campaigns, etc. when they create this noise around pone coin, people think they will miss out on huge profits. Therefore, they rush to purchase this coin or token. When many people start purchasing a single coin or token, it increases the coin price.

When these fraudsters have successfully inflated the price of a digital currency, then these scammers sell off these currencies and cause a crash in the market. This entire process of raising the price and hitting it down on the ground can occur within minutes. Therefore, you have to be aware of these emails and messages and don’t trust everything that you listen to or read on social media regarding your investments. Conduct proper research and development before your transfer your funds or invest anywhere.

Fake applications

False applications have often been reported where these scammers try to get their hands on the victims. They try to download these applications from the play store and even the apple store. However, these websites are removed instantly when they are found. However, most of the time, easy money attracts many people, which is why so many people download it.

Here, they get access to your phone and your crypto wallet. Therefore, it is said to not download any bitcoin or any computer currency application as they can rob you of all your funds in one go. Moreover, when you download such applications over your phone, you tend to give access to multiple private stuff that you have on your phone.

Thus, before investing and trading, conduct proper research and development. Moreover, if you are using an online website or application, you should be more conscious before you start transferring your funds. Scams are everywhere, and you should be accountable for your hard-earned money.

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