No one can deny the fact that cryptocurrency is growing each day exponentially. It has become so famous that every investor from around the globe is seeking opportunities to earn huge profits by investing in these digital coins. Thousands of exchanges have been released to deal with cryptocurrencies, but the main question is that are they all reliable?
People invest massive amounts of their funds without even realizing the risks. Even after knowing that no central authority is involved while transacting via digital coins, one cannot just ignore the threat of the scammers. Scamsters are looking everywhere for opportunities to hack user’s identities and all the other information. So, how can a person know that he is being crypto-scammed?
In this article, we will share different warning signs by which you can get an idea about crypto-scams. Experts believe that in the coming future, cryptocurrencies will revolutionize the financial system. If you also want to join the trading market but are not aware of it, visit this site. This website has one of the best trading software to help you analyze the market and make the right decisions.
WARNING SIGNS THAT TELLS YOU ARE ABOUT TO BE CRYPTO-SCAMMED
It has been more than a decade that digital currencies have arrived in the market. No doubt that it has been compelling individuals and even the government to take this technology very seriously. Experts believe that these cryptocurrencies are going to be the future of the world. But do you have any idea that it also attracts a lot of threats for users or investors?
Decentralization and freedom are the two main features for why people love to trade in this market. However, nowadays, these characteristics of cryptocurrencies are being spoiled by scammers from all around the globe. Thousands of digital coins are available in the crypto world, and people find it challenging to know if they are being scammed. Below are some of the warning signs that you must keep in mind to save yourself from these scamsters.
1. Beware of the coin’s market value is always appreciating
Scamster know human psychology very well and try to play with it. They see the fact that people always want to earn huge profits no matter what.
Therefore, they generally use this strategy to get into your pockets. So, whenever you see any digital coin’s market value constantly increasing, then think twice before investing your money in it.
Cryptocurrencies are highly volatile, which means that their price keeps fluctuating even in seconds. Scamsters develop currencies whose values keep on appreciating each day to trap the investors. However, one must be aware that no coin behaves in such a manner, not even the Bitcoin, whose value also keeps on fluctuating.
2. Inaccurate sources of information
The Crypto market is highly competitive, and if any project is trying to release its digital coins, it always steps forward by taking an oath to bring its best into the market. It means that whatever information or data they release should be as accurate as it can be. Every project initiator tries to gain the trust of the investors to make their projects successful.
However, if you couldn’t find any reliable source of data or information, then it might be a warning sign for you. If a person finds that any of the project members is misleading or lying to them, he must take these issues very seriously to avoid getting trapped by the scamsters.
3. Making unrealistic promises
Every one of us is looking forward to making investments that can give us financial freedom and long-term stability. And there is nothing wrong with it, but scamsters take advantage of such things to exploit us.
Some projects will promise you the moon and stars and will say that they will change your life forever but do not trust them. Exchanges that promise to bring huge profits to you are big warning signs that you will soon fall into some trouble.
4. If the coin doesn’t satisfy the fundamentals
It is believed that if a digital currency doesn’t have any of the fundamental characteristics in it, then it could be a trap. These fundamentals include decentralization, controlled supply, limited usage, and a disclosed source code from the public. If a person does not see any of the mentioned fundamentals in a coin, then it is suggested not to get involved in such investments.
5. Anonymous identities of the team leaders
The first thing that anybody checks before investing in a project is the legitimacy of its members. Of course, it is necessary to know their identities to review their experience, skills, and connections. All this information is usually mentioned on the websites. Many times scam projects do not reveal their identities and choose to remain anonymous.
When are people not aware of their identities, who will be held responsible if the project in which they invested fails? So, next time if you don’t find details about the team members of the project on the website, be careful and do not invest your money in it. These are one of the early signs that an investor must be aware of.
6. Not a reputed crypto exchange
It is usually very challenging for an exchange to secure its place under the list of reputable crypto exchanges. They have to go through a rigorous procedure to make their assets qualified. Therefore, we can conclude that if any project is not listed in the reputable exchanges, then there are high chances for you to get scammed. So, it is always advisable to look for reputable exchanges for buying any cryptocurrencies.
TO SUM UP
As the demand for digital currency is rising every day, scammers are also finding their way out in such a situation. They understand human psychology very well and try to play with it. Various signs show you are not investing in the right place. Therefore, to avoid these scams, learn about the above warning signs and save yourself from falling into traps.