When getting started with cryptocurrency, a lot of people have the misconception that it’s completely safe. They don’t realize that there are actually a lot of scammers out there that are only interested in taking their money. Unfortunately, there have been billions of fraudulent transactions that have occurred simply because an innocent person fell for a crypto scam. If you are worried about this happening to you, the best thing that you can do is to be educated about some of the most common scams that many people have fallen victim to. Here are three popular crypto scams and how to avoid them.
Hidden Fees
Some cryptocurrencies have all sorts of fees that are intricately woven into their contracts. Unfortunately, a lot of people aren’t able to understand what they mean without having some sort of knowledge of computer coding. What this means is that scammers are easily able to get individuals to pay a lot of hidden fees, and there isn’t much that the unsuspecting person can do about it. If you are interested in buying cryptocurrency but are worried that you will fall for this scam, the best thing to do is only buy a few dollars worth of the currency. Then, try to sell it in a couple of days for the same amount that you paid for it. This will give you the opportunity to find out if there are any high resale fees that you will have to pay for selling this particular cryptocurrency.
Currency That Can’t Be Resold
Many people are making money with cryptocurrency by reselling it at a higher rate than what they paid for it. A lot of scammers will price crypto very cheaply so that a buyer will try to snatch it up right away because they think they will be able to make a hefty profit off it. The catch is that this crypto can’t be resold because of the way that the scammer has written the contract. This leaves the buyer with cryptocurrency that they can’t really do anything with. A good way to avoid this crypto scam is to not buy newer currency. Only purchase currency that’s in the top 100.
Hidden Codes In Non-fungible Tokens
Scammers are also targeting non-fungible tokens. They have found vulnerabilities in the marketplaces where consumers can buy these tokens and have added malicious codes to them. All it takes is the user clicking in the wrong place and their accounts getting cleaned out by the scammers. The only way to avoid this type of scam is to not click on any areas of these websites that look out of place.
Buying and selling cryptocurrency can prove to be very lucrative if you do it the right way. However, you do need to keep in mind that there are thousands of scammers out there that want nothing more than to try to scam you out of your money. This is why you need to be aware of the three popular crypto scams mentioned above. In many instances, you can avoid getting scammed by doing some research before making a purchase.
