3 Sure Ways To Identify a Crypto Scam.

7 Jun 2022

There are different kinds of cryptocurrency scams that target newbies in the crypto space. Scammers prey on individuals who are unaware of the distinction between a legitimate crypto platform and a phony one and those who cannot differentiate a Ponzi scheme from a valid crypto project. These scammers deceive victims into believing that their well-designed websites provide an appearance of credibility, yet upon closer scrutiny, these websites fail the test. 

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Here are some major red signs to look out for:
1 - Site Does Not Have an SSL Certificate
The installation of an SSL (Secure Sockets Layer) certificate is crucial for a website that deals with cryptocurrencies. Websites without SSL prefix their domain names with HTTP, while websites with SSL use HTTPS. Many scam websites that are fraudulent do not have an SSL domain, meaning that once they've defrauded a certain amount of individuals, they'll shut down the domain and move on to a new one. Because it is so simple to transfer website data from one domain to another, these scammers can swiftly set up a shop.

2 - The Offer Is Unrealistically Good
If it's too good to be true, then it most likely is. Irrespective of whether you're attempting to obtain the best exchange rate for dollars or bitcoins, it's only reasonable that you'd desire the best bargain available. 

Due to the decentralized nature of cryptocurrencies, most crypto exchanges have their exchange rates. However, there is little variation in these rates. If a website's exchange rates are much cheaper or higher than those of other reputable exchanges, this is a major warning flag. 

It is preferable to conduct business with a reputable platform that charges greater fees than to try to find the greatest bargain on an unreliable website that could potentially defraud you of your entire fortune.

See also: 6 Companies that accept Bitcoin Today.

3 – Beware Of Ponzi Schemes
Some Ponzi schemes are not as visible, especially if they have been operating for several weeks. This is because their initial members would have already gotten their profits (from payments made by new recruits) and would be posting positive evaluations online. 

On the surface, it may appear to be a legitimate crypto operation, especially if you know someone who has profited from the scheme. Check out these positive testimonials, and you'll notice that they all say essentially the same thing. Check and double-check again, and verify the claims of those who have invested before you put in your money. Usually, a Ponzi scheme thrives on referrals; if the system or project is largely based on referrals, it might be a bad sign.

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