What are the common scams of cryptocurrency? What danger signs should we be alert to?

Nov 22,2022
What are the common scams of cryptocurrency? What danger signs should we be alert to?

Cryptocurrency fraud is usually disguised in an ingenious way, allowing unsuspecting users to be deceived. If you know how to detect a scam before it happens, you can stay safe. The swindlers constantly come up with new ways to swindle the unsuspecting victims, so it is important to be familiar with the different methods often used by the swindlers, so that you will not be caught unprepared. The following are some common types of schemes and dangerous models that should be noted when encrypting transactions.

1、 Common danger signals

1. A fraudster who promises high returns

Hackers usually ask users for a certain amount of money and provide a guaranteed return of 10 times the initial investment. The deal was unbelievably good. That's because it's probably a lie.

2. Zero risk

In cryptocurrency, high risk equals high return. This is because the volatility of cryptocurrency will cause its value to rise straightly or vice versa overnight. Cryptographers usually promise to invest with zero risk. This is an unrealistic requirement for any investment, let alone encryption. If an entity claims to have zero risk in dealing with them, they may be trying to deceive you.

3. Exorbitant quotation

Someone may provide you with cars, money, travel and other luxury facilities to make you believe that the encryption project has a high return. These lucrative Ponzi schemes often lead to fraud, because material gifts can easily be forged online, especially on social media applications and related platforms.

4. Suspicious founder

Any encryption platform providing services or products should be completely transparent. If you cannot find the information of the founder or developer, such as website, contact information and open source data, it is likely to be a fraud. It is also important to know the founders with a history of fraud. Before entering into any transaction, it is necessary to conduct a background check on the other party to ensure that they have an honest record.

5. Promotion by rough influencers

By 2025, the value of the global influencer market is estimated to be about $24 billion. Social media influencers and celebrity endorsers have a great influence on consumers' purchase decisions. Similarly, fraudsters may pay influencers to promote their scams, thereby capturing loyal followers of social media influencers.

Various immoral influencers encourage this behavior and promote scams to make fast money. Therefore, before buying what social media influencers promote, you need to carefully check who you are following and question.

2、 Types of scams

1. Steal access to wallet with cryptocurrency

To trade cryptocurrencies, you need a cryptowallet. These are essentially digital wallets that store cryptocurrencies, just like you store credit cards in an ordinary wallet. You need a private key or mnemonic to access your digital currency. However, some cryptowallets also exist offline.

Some fraudsters may try to break into your encrypted wallet and other private information to obtain your encrypted currency funds. Therefore, you must not share your private key with anyone or put it in an unsafe place. In addition, security methods such as dual identity authentication (2FA) are used to provide additional protection.

2. Let cryptocurrency be sent directly to another entity

The fraudster may try to deceive other individuals or entities you trust and steal cryptocurrency from you as a form of blackmail. They will investigate and follow you for a long time before establishing detailed personal information and asking you for money. They may even pretend to be deceived and let others believe that they are interacting with well-known entities such as the government, non-profit organizations, customer support and even friends.

3. Let users buy products or coins

A liar may ask you to pay a large amount in advance for an attractive and luxurious proposal. Once you pay the amount, the other party will disappear with your money, unable to track them, and unable to recover their steps. As most encryption trading platforms are decentralized, it is impossible to complain or recover your money through a responsible organization.


The above content briefly describes the types of fraud and common dangerous information in the cryptocurrency market. Due to the development of encryption technology and minimal supervision, in recent years, fraudsters have targeted unknown users or new and old users to steal cryptocurrency. This not only means that users must be cautious, but also encourage others to do so. Dangerous signals are very common, and any type of encryption fraud can occur.