The Bull Run, the phenomenon that sees a significant rise in the value of Bitcoins, attracts more and more people into the crypto game. Companies and investors are trying to get a slice of the cake at all costs. Unfortunately, that also introduced a worrying number of investment scams that rip off newbies.
These scams are presented in different forms, and those who are new to crypto must be careful. Let’s have a look at the most common scams that you need to avoid:
ICO (initial coin offering)
Block-chain-based technology is still booming, and thousands of companies and investors are entering this market every day. It is not surprising that you can find new offers and projects in every corner.
Initial coin offerings have become one of the most popular ways to finance new projects using tokens’ new, evolving digital financial market.
ICO is particularly attractive because of the freedom and anonymity guaranteed, opposite to the heavily regulated public offerings.
Companies ask for a deposit in Bitcoin or Etherum in exchange for their coins and juicy profits. But investors take a huge risk since there are no legal regulations.
To avoid these scams, the best thing to do is research. You have to look into the company and see if the company is legitimate or not. Specialized forums are one of the best places to ask peers for info about the company. Reading the white paper is another way to understand more details about the provider as well as a simple Google search with the company name + scams. Try to know as much as you can about a company not to lose all your crypto.
Cloud Mining
Cloud mining is another way for new or relatively new companies to get the resources needed to compete in the market. They offer advantageous prices and appealing returns to rent you a server of a portion of it and profit from miners’ work. These clouds mining contracts can be bought with crypto.
Transparency is what you’re after here. Too often, companies promise cheap fees and abundant returns, which may (very often do) hide additional costs and reductions on the return. It’s essential to know what the market is offering in terms of fees and returns and avoid going after unrealistic profits, which are a clear sign that something might be wrong.
Multi-Level Marketing Companies
MLM companies work in a way similar to network marketing. They pay the profit to previous investors with the money of who is entering the game. These companies promise irresistible returns based on the number of people you invite to join. They grow rapidly but collapse easily when they exhaust the number of newcomers.
Once again, check the company credentials. If you don’t find them, don’t trust outstanding profit margins.
Note: We couldn’t include all the scams out there, and probably there are new ones that we are not aware of in the cryptocurrencies market.
If you have fallen victim to this type of scam or you want to warn others, get in touch with us at support@royalcoins.io.
https://cointelegraph.com/news/did-you-fall-for-it-13-ico-scams-that-fooled-thousands
How many times did you get unsolicited messages from an individual presenting himself as a crypto broker promising significant returns after becoming your “investment advisor” or “trader?”
Yes, most of the time, they are after your money. They tell you that you just need to fund your account with cryptocurrencies, and money will come in steadily. This is one of the greatest threats for inexperienced investors, and the phenomenon is not going away anytime soon.
Never trust:
Avoid scams
Since it is quite hard to identify these individuals, common sense is what you need not fall into their trap.
No one would push you too hard if legit. An honest broker never promises you a shortcut to get rich. It doesn’t happen, so they can’t promise that.
When you think that what they promise is too good to be true, it is 99% of the time.
So the best thing you can do is to be careful when approaching less popular exchanges. For example, you can use Trustpilot and similar online resources to read reviews and see what people say. This is a good way to find complaints of people not being able to withdraw their funds and lack of any sort of customer support.
Another thing you can do is to add the word “scam” into your Google research. Easy but efficient. You can find if a company or individual is registered and if they are reliable. You also need to be informed about standard fees, rates, and profit and avoid being too advantageous.
Never feel pressured to invest and, mainly, end the conversation as soon as they start being too pushy. Finally, be extra cautious when approached by a Blockchain recovery expert claiming they can retrieve your lost funds. Quite unlikely to happen.
Note: We couldn’t include all the scams out there, and probably there are new ones that we are not aware of in the cryptocurrencies market.
If you have fallen victim to this type of scam or you want to warn others, get in touch with us at support@royalcoins.io.
Cyber security is becoming more important now since cyber attacks are becoming more frequent and sophisticated. Criminals create malware which is malicious software with the purpose of damaging or stealing crucial information from your computer. Potentially, we are always under attack because malware can be activated every time you download a file or click on a link. As you may have heard tons of times, you should pay much attention to what software you download onto your computer or what link you click on, and always be sure of the authenticity of the sources. Failing to do so may result in a blood bath for your crypto holdings.
Copy and Paste Malware
Also known as CryptoShuffle, this malware is particularly tricky and hard to detect. It gets into your computer through unsafe downloads and risky clicks. This malware changes the recipient cryptocurrencies address into the hacker’s one. This way, your crypto will go straight to his pocket with no chances for you to recover the sum.
This malware is hazardous because it small dimension from a data standpoint and how easily anyone can fall into this trap.
To protect your founding from this type of attack, you always need to update your computer and install up-to-date malware protection. Hackers are constantly creating new malware and you must strengthen your system continuously.
To avoid unpleasant surprises, the best thing you can do is to double or triple-check the address you copy and paste before transferring the money. If your address is correct, you have not been infected.
Ransomware
Similar to the previous one, a trojan virus, this malware is designed to steal or block your files and lock them until you pay a sum in crypto to the hacker. Theoretically, after paying the sum, you get your files back. Unfortunately, most of the time, this is not the case. Many criminals will keep asking you for additional payments, or they will simply not give you anything back after the payment.
Now, even in this situation, to keep your funds safe, you need to be extra careful whenever you download anything from the Internet or click on links. Pay extra attention to emails. Never click on links from unknown senders.
Remember, if you fall victim to these attacks, you can always try to search for places online where a few ransomware encryption keys have been released, and you could get your data back for free.
Most of the time, when you fall victim to these types of scams, you won’t recover your data, files, and money. That’s why it is much better to prevent at all costs these inconveniences and strengthen your cybersecurity.
Note: We couldn’t include all the scams out there, and probably there are new ones that we are not aware of in the cryptocurrencies market.
If you have fallen victim to this type of scam or you want to warn others, get in touch with us at support@royalcoins.io.
Have you ever been tempted by these ads you see on social media saying that someone like Elon Musk is giving out cryptocurrency? Rich people acting as a modern Robin Hood? Improbable.
Unfortunately, a scammer impersonates a prominent figure to gain trust. In order to receive the free crypto, you are required to register by leaving your personal information. After, the victims are asked to send a certain amount of bitcoin first, promising to send back a much higher sum, even double! You can imagine that the chance of getting something back is really slim.. Well, it’s equal to zero.
These posts are extremely well done, and look legit, as the accounts will be falsely verified. For example, on Twitter, they will show a blue checkmark, while on Youtube, live stream videos of the “Crypto Robin Hood” are uploaded. But what about all the comments left by so many strangers? Of course, they are not real. Scammers create very convincing fake accounts and leave tons of encouraging reviews and messages to encourage people to follow them.
In most cases, the scammers will push people by making them believe that they need to add straight away. The most common trick is to advertise the giveaway as something that will only last for a limited amount of time or saying that only a certain amount of cryptocurrency is being given out on a first-come, first-serve basis.
How to protect yourself
The first thing to do is not to trust easy money. When something is too easy and promises loads of money in a short time, that is very likely to be a scam. Most of the time, scammers will ask you for crypto before sending you back the promised sum. Once you send them money, you can forget about them. They will be gone for good.
Never trust who is pushing you too hard to give them the money. Legit salespeople are a bit pushy, but not too much.
Finally, stay up-to-date with the latest scams and new ways to trick people into scams. Read forums, blogs, and industry news.
Note: We couldn’t include all the scams out there, and probably there are new ones that we are not aware of in the cryptocurrencies market.
If you have fallen victim to this type of scam or you want to warn others, get in touch with us at support@royalcoins.io.
The use of cryptocurrencies for purchases has rapidly increased during the years, and with this also the number of scams. Most Bitcoin purchase scams are around expensive items that are offered at a very appealing price.
We all like a bargain! Especially if it means that you can purchase a car, a boat, or a luxury item for much less than the typical market value. But, before considering going ahead with a purchase, make sure the seller is legit and that you aren’t falling for a scam. Scammers are usually very professional and use a variety of tricks to attract buyers. They also advertise products on official and trusted platforms, such as eBay Motors, Craigslist, Offerup, AirBnB, and other similar e-commerce sites.
The good thing is that it’s not impossible to spot a scam. With foresight and by paying attention to a few things, you can! Here are the main signs to watch out for:
So before jumping in a Bitcoin purchase, try to slow your initial excitement and keep your eyes open. If you follow the suggestions above, you can be sure to protect yourself from scammers.
Note: We couldn’t include all the scams out there, and probably there are new ones that we are not aware of in the cryptocurrencies market.
If you have fallen victim to this type of scam or you want to warn others, get in touch with us at support@royalcoins.io.
