Cryptocurrencies, blockchain technology, ICO, altcoins are all relatively new terms even now in 2018. As often happens, there are always people who want to possess a criminal way of your money, when the consumer is poorly versed in the product, it is doubly easier.
We have gathered for you the 6 descriptions of how You can cheat in the cryptocurrency world.
1. ICO Scam(Fraud)
Here everything is simple. People invest money in a project, the project collects the notional amount and ceases to exist. Based on data from the ICO Market Stats, in 2014, was conducted more than 1500 ICO in the amount of $11.7 billion, and every 7th or proved to be futile and not realized or “developers” just disappeared with the money collected.
Always check carefully the projects that are going to invest. If you are inexperienced, try not to invest money in a project that has no product. There is a possibility that the promised product will not be implemented ever.
The same applies to little-known cryptocurrency. To create your own token is relatively easy, much harder to attach a value. By purchasing this or that token make sure that the project is worthwhile and promising.
2. Pump channels
There is a lot of pump channels in the telegram and other social networks. Oshibochno believe that by subscribing they have so-called “insider info” that will help them to determine exactly what currency and at what exchange will make a rapid growth.
It works like this:
- Spun or bought telegram channel(or group in any social network).
- At a certain time the administration of the channel to announce which token on a stock exchange(usually a Yobit) to purchase.
- Token Pampita(rapidly bought up) on the team and as rapidly loses its value.
What’s the catch? The bottom line is that the owners of the channel in advance buying any of them any little-known token that is worth a penny. Give the command for the purchase in one group or in several. Price multiples is growing rapidly and the owners of the channel sell out in seconds pre-purchased asset, and all who bought at a fabulous price some token dummy doomed to wait for years that the token will ever grow in value and they can get their money back.
3. Fake Twitter accounts
By fairly simple manipulations, the criminals create Twitter accounts official pages altcoins, cryptocurrency developers or just popular personalities in kryptomere.
Then in the comments of official channels as the owner of the suit contests, hold events, share their alleged insider, etc. Just need to send some tiny amount and get back with enormous profits. Then run the same bots who claim that all this is pure true, and “all paid!”.
4. Cryptocurrency funds
The mere phrase “Cryptocurrency Foundation” inspires people to trust, as this Fund is something familiar to our ear, solid and condusive to confidence. In fact, the vast majority of these “funds” — only a couple of individuals, without appropriate documents, licenses and permissions to engage in such activities.
Even when crepault was in active growth, and such “funds” properly dispose of the funds of depositors, the interest rate charged for the provision of services, just neutralized the advantages of cooperation, as it was much more profitable to just buy coins myself and keep them on the wallet.
5. Hidden mining on your PC
You still do not know, and you’re mining! This, of course, not exactly, but better go through your computer antivirus for hidden miners, which not only bring income with the power of your device to someone else, but also greatly hinder his work.
6. Clones of sites of exchanges/wallets
The principle is the same as with Twitter account – the website is copied, the only difference is the domain name, make it minimal. Further, often, is sending the email, for example, on the stock exchange share. You go, log into your account — enter all the required data that you steal. Now the crooks can steal funds from the account on the exchange, or purse. To avoid this scheme, use sites and services with dual authentication.