The Top 5 Ways To Identify A Cryptocurrency Scam
If you’re new to cryptocurrency, it can be confusing to spot the difference between legitimate companies and scams, since scammy companies will often look just like the real thing. That’s why it’s vital to know how to identify a cryptocurrency scam by using these five signs…
1) Insist on an Escrow;
Most cryptocurrency enthusiasts believe that true crypto scams don’t exist. At best, there may be some incompetent startups, but with most companies (even proven scams), there’s a chance that things might work out in due time. With ICOs, however, it is almost impossible to tell if a project will even end up being viable or not. This makes an escrow service essential. This way you can be sure that your money isn’t just going to vanish into thin air. If you invest in something and feel cheated or threatened, at least there is someone you can contact and complain to if things go south! The crypto part of cryptocurrencies has never been more deceptive than it is now! It is extremely important to know how to identify a cryptocurrency scam before investing any money in any crypto currency or blockchain related product. We are here today to help you identify all possible types of Bitcoin scams which can happen when trading Bitcoins online. You should always keep one thing in mind that whether trading on online exchanges or peer-to-peer (P2P) services, scammers are everywhere! And we are here today to give you tips on how to spot them easily before they steal your hard earned cash. We have listed down various kinds of Bitcoin scams so stay tuned as we show you how they operate and how you can protect yourself from getting duped by them.
2) Double Check Their Linked In Profile;
Most scammers will link their fake cryptocurrency website to their verified Linkedin profile. While not always a sure-fire sign, If someone claims to be in one field, but has no verifiable job or company on their linked in profile then there is a very high probability that they are involved in a cryptocurrency scam of some sort. For example, if you Google Crypto Currency Club and go to their Linkedin page you’ll see that it is linked to a bunch of other crypto scams (all with verified LinkedIn profiles). It’s almost impossible for an individual to have such a large network in different companies at once so if you see anyone who appears as though they might be running multiple scams it’s probably worth looking into further.
3) Research Their Team;
Search their team members on LinkedIn and make sure they are who they say they are. The names, ages, photos and bios will not all match up, which is a big red flag! Search for more info on other social networks and use Google image search to verify if it’s actually them. Also search for their full name with scam after it. You should be able to find others online who have fallen victim to a crypto scam. If you can’t find anything about someone then that is even worse! That means that person was made up in order to deceive you into giving them your money.
4) Does the domain name look legit?
You can easily identify fake cryptocurrency websites by doing a domain name search. If there is a very similar name for a real site, but with added digits to try and fool you (ie. coinbase(dot)co vs coindesk), that’s probably not a good sign. And if it’s even harder to spell (the c in coinbase gets replaced with an e), then that is definitely bad news. Looking at who registered it is also important—if you see something like Bitbucks Ltd registered as where bitcoin started, don’t trust them! Also make sure to look at who owns the domain now—it should be a company or an individual—and do some Google searching about them as well.
5) What is their whitepaper all about?
You want to see a long whitepaper describing their problem and how they intend to solve it. This may include a detailed plan for global adoption. Don’t believe whitepapers which boast of magic algorithms for processing transactions. The better you can understand their whitepaper, vision, and management team, plus technical details and explanation, the less likely you are to be scammed by fake cryptocurrency websites.