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    Common Crypto Scams and How to Avoid Them (P2)

    Cryptory.net - There are dozens of scams in the crypto space that you need to avoid.

    6. Phishing Emails

    Scammers use phishing emails to redirect users to fake websites where they try to steal money and personal information. These emails are especially dangerous when they imitate a product or service that you use regularly. Before clicking on any email, be sure to check if the email is coming from the original source. If in doubt, you can contact the company directly to confirm the email you received was from them.

    7. Tech Support Scams

    Another form of scam where these scammers pretend to be the support team of a project or an exchange and ask users for personal information, deposits or private keys. These guys often ask you to pay them to “fix” a non-existent problem with your device or software. If you allow them to remotely control your computer to perform this “fix”, they will often install malware, ransomware, or other unwanted programs that can steal your information or damage your data or device. Be careful!

    8. Cloud Mining

    Due to the higher cost of mining equipment and electricity, cloud mining is increasingly popular. It is the easiest and most efficient way to earn money from cryptocurrency mining without buying and maintaining your equipment. The platforms will market to retail buyers and investors to put upfront capital down to secure an ongoing stream of mining power and reward. These platforms don’t actually own the hash rate they say they do and deliver the rewards following your downpayment. Although Cloud Mining itself is not necessarily a scam, thorough due diligence must be conducted on the platform before investing.

    A well-known case is MiningMax, a cloud-based mining service that requires people to invest $3,200 for daily ROI for two years and receive $200 in commission for each investor referred (ref.). The site defrauded investors of up to $250 million.

    9. Ponzi Schemes

    Ponzi scheme is a form of borrowing money from one person to repay another. Borrowers offer high-yield commitments to lenders and advertise to them examples of past high-yield returns to attract lenders. Lenders attracted by high yields will continue to cheat others. In this way, borrowers increasingly borrow larger amounts of money from many new lenders.

    The most notorious Ponzi scheme in crypto history is Bitconnect. Surprisingly, it stayed up and running for a year, until they made their biggest exit scam to date. At the time of the crash, Bitconnect’s market cap was around $2 billion and the token’s price was around $320. In less than 24 hours, it plummeted to $6 and the market cap dropped to $40 million.

    10. Phone Hacks

    There have been many crypto influencers who were victims of phone hacks. The way they work is so simple in which attackers take over a phone number by duping wireless carriers, then use that information to access and drain crypto accounts. Investors should protect their phone numbers and keep their funds in cold storages. This method allows you to store digital currency offline, away from any internet access, thereby making it harder to hack.

    (To be continued)

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