Cryptocurrency Scams are growing exponentially in recent years, which is a side effect of the currency boom. According to the Federal Trade Commission, users of decentralized finance have lost a combined $10 billion in fraud, theft, and other forms of deception by the time 2021 rolls around. While it is difficult to pinpoint the exact cause of these losses, there are warning signs that can help you identify fraudulent activities.
In particular, you should be wary of companies that claim to offer the best return on your investment. While it is possible to profit from cryptocurrency, you should always exercise caution. A common warning sign of a scam is a company offering to pay you thousands of percent returns on your investment. This is a classic fraud warning sign. Also, beware of ICOs that pressure investors to deposit coins into a compromised wallet and perform a “pump and dump” scheme.
Free money offers: As you can see, there are many warning signs to watch out for. First, remember that free money promises are fake. Secondly, big claims without enough details should be questioned. In addition, you should never invest in cryptocurrencies if you do not know anything about them. And, of course, never believe anything you read on social media. You should not be part of a fraudulent investment, unless you’re a crypto expert.