What Are Crypto Scams?

Crypto scams come in many shapes and forms, and their goal is simple: to steal your money. They often take advantage of the lack of regulation in crypto, making it harder to track fraud. Whether it's fake websites or fraudulent investment schemes, it’s important to know what to look out for.

Top 5 Common Crypto Scams

Let’s break down the top five scams you need to watch out for and how to avoid them.

1. Phishing Scams

Phishing scams involve scammers pretending to be legitimate platforms to steal your login details or private keys.

Always double-check the URL before entering your information, and never click on links from unsolicited emails or messages. Real platforms will never ask for your private keys!

2. Ponzi Schemes & Fake ICOs

Ponzi schemes and fake ICOs promise huge returns with little risk, but in reality, they use new investors' money to pay old ones.

If a project promises unbelievable returns, be cautious. Research the project’s team and the legitimacy of its whitepaper before investing.

3. Pump-and-Dump Schemes

Pump-and-dump schemes are designed to inflate a coin’s price using fake news or social media hype, only to have the fraudsters dump their coins once the price peaks.

Never buy a coin based on social media hype. Always check the fundamentals, and don’t chase quick gains.

4. Rug Pulls

A rug pull happens when developers abandon a project and drain the liquidity pool, leaving investors with nothing.

To avoid rug pulls, make sure the project has a verifiable audit, a credible team, and active community engagement. If there’s no transparency, stay away.

5. Fake Crypto Wallets & Exchanges

Fake wallets and exchanges are designed to look like real platforms to steal your funds.

Always use well-known, verified platforms like Coinbase or Binance. Don’t trust apps that aren’t available on official app stores or that ask for your private keys.

$How to Protect Yourself:

Use 2FA, research projects, and store long-term funds in hardware wallets like Ledger. Avoid unsolicited offers and too-good-to-be-true deals.