Cryptocurrencies are on the rise as the finance world gradually embraces the idea of virtual coins for transactions. Tons of cryptocurrencies launch each month with their respective uniqueness. Crypto lovers are never tired of adopting these new measures to finance. Such love is engineered by the core values of crypto – security, privacy, personal freedom, and personal liberties. However, there have been instances when these values were tampered with, causing problems for investors. Here are some of the typical traits of crypto scams:
Promises of high or guaranteed returns
Scammers usually try to lure people into buying shady cryptocurrencies through the unrealistic promise of making almost 100% returns. Investments are expected to follow economic indices and are not guaranteed. Typically, most cryptocurrencies fluctuate based on several factors which cannot be entirely predicted. In cases where a coin experiences constant bullish runs, investors are often advised to invest carefully.
Unrealistic promotional messages
Promotional messages are meant to convey a product’s benefits to users. However, crypto users need to be wary of messages with false hopes. Crypto scams have mastered the art of creating buzz around their products with fake figures. Imposter images also characterize these messages. Scammers use fake accounts of popular celebs to deceive unsuspecting people. As a form of make-believe approach, they also set up bots to reply to their messages on social media. Victims of these messages are often swindled off their coins. Scammers also announce fake initial coin offerings via emails to lure people into believing it’s a new coin.
Fake team members
When a new product comes out, people are curious to know the faces behind it. Scammers use fake pictures of individuals to lure people into these scams. Watch out for stock images of staff members when researching a new coin.
How to avoid crypto scams
Do your research: When you stumble on an exciting offer on the internet, it is advisable to take ample time to research everything about the coin. If you are still in doubt, don’t invest yet. You can seek help from like-minded people through legitimate crypto communities. Passfolio has a community of over 4.000 members.
Check their Whitepaper: Whitepapers are an incredible way to learn more about a crypto project. Whitepapers papers reveal the objectives, strategy and timelines of blockchain projects. It is important to read prospective crypto companies whitepapers carefully and decide if it would be worth investing in.
Why not invest safely in Crypto with Passfolio Financial?
With over 40 types of crypto assets, Passfolio enables you to invest without losing sleep over the legality of a coin.
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