Crypto Scams are on the rise and they pose a significant threat to new investors. Crypto and Blockchain technology are becoming more popular every day. 1 in 10 people invest in cryptocurrencies, and more than 1 in 3 crypto investors know very little or nothing about it.

Impacts Of Crypto Scams

According to the Federal Trade Comission (FTC), almost 7000 people lost around $80 Million in crypto scams from October 2020 to March 2021.

What Are Some Common Crypto Scams?

Most Cloud Mining Sites (Not All)

There are many cloud mining sites which offer a free mining package for a fixed amount of time and then after the time period is over they give you multiple paid packages to choose from which promise a fixed amount of profit, and the more the investment, the more the profit. Many investors who are new to crypto and don't know about crypto scams fall for this and purchase an expensive package thinking they will get a huge profit, but by the time they realize it's a scam, there's nothing they can do about it. There might only be a few cloud mining sites which are not scams.

Demanding Cryto-Only Payments

If an anyone claims they cannot accept any form of currency other than Bitcoin, it’s likely a scam. anyone demanding you pay them in Bitcoin might be trying to hoard it and capitalize on its skyrocketing value.

Conclusion

Don't fall for scams which can make you lose a lot of money. Don't do things blindly, always research about anything before doing it.