The online trading industry gets filled with thousands and thousands of traders regularly. New companies set up shop to sell their online cryptocurrency trading services in the industry as well. The overall growth of the online trading industry and cryptocurrency markets is thanks to both factors. However, the main issue is that with the growth of the industry, the scams and frauds also keep increasing and pose a serious threat to the industry’s survival in the long run. Apart from that, scams and cryptocurrency frauds are a huge danger to first-time traders like you.
If you’re new to the online trading world, especially if it involves cryptocurrencies such as Bitcoin and Ethereum, you must learn about the most common types of cryptocurrency trading scams. While the list of scams and fraud types is endless, learning about the most common ones is a good place to start.
Romance Cryptocurrency Scams
While it may sound absurd, romance cryptocurrency scams are a depressing reality of the online trading and crypto exchange world. Many scammers target the wonderful dating world and begin their unlawful ventures there. Of course, those looking to start their online dating life for the first time will have little to no knowledge about the romance crypto scams.
Romance scams are just like any other scams but the main difference is how they start. You may think that you’re in a long-term relationship with a lovely guy or gal. But, when the other person gains your trust, they may start sending you lucrative cryptocurrency deals and offers. To untrained eyes and inexperienced minds, it’s a dream come true.
Besides, who wouldn’t want to get rich while finding their true soulmate through the internet? But, in reality, it’s all just a scam! The romance scams can have you transferring money to them in the form of stocks, indices, and other types of assets. But a huge chunk of such scams involve cryptocurrency losses. Plus, if an offer is to sign up on a forex trading platform, make sure you check the Forex broker blacklist info first!
Giveaway and Imposter Crypto Scams
Moving down the barrel of influence, you will learn that some scammers have previously used the aliases of worldwide famous personalities and celebrities to con innocent people. At first glance, it might seem like a friendly celebrity or personality is celebrating a legit event and therefore, sending gifts to their fans and followers. But in reality, it’s a con trick used by scammers to lure fans and followers of those actual celebrities, personalities, and influencers.
Posing as actual personalities, celebrities, and influencers, scammers can make false claims and promises. These could involve multiplying the number of cryptocurrencies and increasing your fortune overnight. Like some die-hard fans and followers, you can also end up losing a chunk of your crypto assets if you are not careful.
Extortion and Blackmail Crypto Asset Scams
Do you know that Bitcoin trading robot scams are among the most popular ones these days? It involves the advertisement of automatic trading robots that trade on your behalf and earn profits with predictable market judgments. While that’s one form of a scam, another popular type is extortion crypto scams.
Scammers claim to have sensitive information about the user and may even make false claims such as having evidence of how a user has been involved in various online adult websites, content, etc. They may threaten to publicly share this false information with your name unless you share your cryptocurrencies with them. So, be careful the next time you get an email that doesn’t appear legit.
Now that you’re aware of some of the most popular types of cryptocurrency scams and trading frauds in the industry, make sure you tread carefully. Your hard-earned savings are your property and no one should steal them from you. By learning about the common scams and fraud types, you can prepare to enter the cryptocurrency trading world with more caution. When ready, find a cryptocurrency trading and exchange platform that offers unique services including additional online security.