Crypto Currency Investing Chapter 10 Summary: Common Crypto Scams

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The world of cryptocurrencies is rife with scams.

It’s not really surprising. The promise of easy riches in an unregulated market is the perfect breeding ground for people ready to take advantage of you.

Some scams make international headlines and have documentaries about them, such as Bitconned.

But the majority of them just quietly destroy lives by robbing people of their hard-earned savings.

However, a little knowledge can help you avoid the scammers while you invest for profits.

Many self-proclaimed crypto experts are more than willing to give you their advice for a small chunk of change.

The problem is, most of them have just jumped on the bandwagon themselves.

Look for people that have been in the market for years, not months. Or even better, do your own research and analysis.

As you are scrolling through Twitter or something similar, a “giveaway” from someone famous, such as Elon Musk, may catch your eye.

The entry requirement is for you to send your crypto to a wallet. The claim is that it will be immediately multiplied and returned to you.

Not surprisingly, nothing comes back to you. The profile is fake and your crypto is now in the scammer's wallet.

The pump and dump is a classic scam in the stock market.

In the world of crypto a coin is created and is marketed very well, usually with false promises and often around pop-culture, such as The Squid Game coin.

Once the coin's value has been raised enough, thanks to investors such as yourself, the creators sell all their holdings and investors are left with nothing.

Phishing is a fairly simple scam that has been around since the birth of the internet.

Basically, the scammer will send you an email impersonating someone else, such as Coinbase or Binance, and ask you for your private key.

NEVER give your private key to anyone!

Remember that Nigerian prince that used to email you saying that he needed help to export his riches, and if you help fund the transfer you will get a cut?

Similar scams are played out all the time, with the promise of some business opportunity. Once you invest your crypto, your contact disappears.

There are no such things as guaranteed returns. If this is the claim, it’s a massive red flag.

Read the next chapter here.

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