Crypto is growing at a rapid and unprecedented pace. As the blockchain technology evolves so do the disingenuous techniques. Shady people rake in millions of dollars worth of stolen digital tokens every year. Below are some of the most common phony crypto schemes, as well as some tips for avoiding them.

Social Media Influencer Rugpulls –

Rugpulls altogether is an extremely common tactic that prays on crypto enthusiasts. However, these fraudulent tactics are becoming more common among influencers, including Youtubers and live streamers. They work almost exactly like a classic pump-and-dump scheme. 

Since making your own coin isn’t all that hard, a number of influencers have created their own cryptocurrency. They then promote their coin to their unassuming audience with unrealistic promises. Once people buy in, create demand, and increase the coin’s value, the influencers then bail and dump all their own coins. 

However, in other cases, it is not the influencer’s fault. Since their social media accounts have massive followings with priceless value, they are often victims of hackers. These hackers then act as imposters and promote a similar scam, as we’ve seen with Elon Musk’s hacked Twitter account. 

How To Avoid Crypto Rugpulls –

– Do not send money in hopes of it doubling.

– Avoid trading low market cap altcoins altogether unless you’re experienced.

– Be wary of coins on the Binance Smart Chain, Avax chain or Fantom (most scammers target these chains for their cheap transaction costs).

Fake Airdrops – 

Real Airdrops are completely valid giveaway events where tokens (cryptocurrencies or NFTs) are dispersed and gifted to the protocol users. These giveaways happen often and can sometimes be worth thousands of dollars. However, some people have taken advantage of this generous marketing stunt to disguise their little scam, which can take place on Twitter, Telegram, Discord…

Because victims are led to believe they will get money, the scam works pretty unassumingly. After chatting for a while with the scammer or even a chatbot designed to scam you, you will get asked to cover transactional fees for the transfer of your free coins. While this might sound like a reasonable idea to a regular person, crypto enthusiasts should know better.

You should never send money to “receive” money. The transactional fees are always included in the transactional contract itself, which can only be paid by the sender himself. 

How To Avoid Bogus Airdrops –

– Do not claim Airdrops from shady chat groups or individuals. Only from official announcements.

– Money should never be given in order to be ‘received’. Whatever the offer may be, avoid it.

– Disable messaging for any Discord NFT server you’re in. This stops scammers from being able to contact you in the first place.

Fake Exchange and Wallet Websites – 

Much like the Indian technical support scam, some websites disguise themselves as reputable IPs (intellectual property). Countless fraudulent websites disguise themselves to be some of the most reputable crypto exchanges or wallets. Their goal is to get any of your sensitive information such as passwords, private keys, or your general KYC information.

Other types take the charade even further, by posing as an actual exchange in order to get you to deposit precious Bitcoins. However, once you deposit your tokens, they’ll soon vanish and you’ll be left with nothing.

How To Avoid Fake Cryptocurrency Websites –

– Always check that you’re on the correct website by checking the web address For example, “coinbase.com” and not “c0inxbasse.ru”.

– Stick to reputable brands of crypto exchanges and wallets.

– Research the site you’re trusting your money with.

– Make sure to download any kind of software from official sources.

Conclusion: The Best Way To Stay Safe Is Staying Educated

In a space as new as cryptocurrencies and NFTs, technologies evolve at a lightning speed, and the scams also evolve with them. Soon someone will come up with a new way to steal money out of innocent people that guides like these haven’t covered. Therefore, it’s important to stay up to date with crypto news from reliable sources to always be in the know.

Reel News  is an authentic source of actionable insights not just about iGaming, but also cryptocurrencies and NFTs. They provide coverage from guides on avoiding scams and choosing wallets to educational info regarding the basics of crypto, as well as news on blockchain gaming and the metaverse.

To learn more visit: https://linktr.ee/Reelnews

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