Avoid scam traps in the cryptocurrency market

Technology is constantly developing, especially Blockchain technology with cryptocurrencies, which is increasingly receiving the recognition of the masses. One thing that cannot be denied is the great benefits that cryptocurrencies bring, but there are also outstanding problems and of course it brings anxiety to investors, especially new investors. scam users, people who are not alert, have not studied the market thoroughly. Let’s consider this issue with Primexbt in the article below.

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Taking the example from Xangle.io, from 2012 to now more than 16 billion dollars has been stolen from investors in the crypto market and that is not the final number because many investors for many reasons Both subjective and objective individuals do not report the amount of money lost so it is probably much less than the amount investors actually lose in the market. The loss of $16 billion clearly has a hugely negative impact not only on those who get scammed, but it distrusts many and can stagnate an entire emerging industry. Some scams are actually very simple and obvious, while others are complex, subtle, and sometimes difficult to recognize and avoid.

However, with the many years of experience of leading experts and the synthesis of the practical experience of many investors who have lost money in the market, here are some knowledge you need to acquire and we can These scams can be easily recognized, not all but significantly eliminated.

What is an investment scam?

Surely you should understand a bit of its basic concept:

An investment scam is when an individual or an organization offers you a fake investment opportunity – but often very convincingly argues and presents that it will give you huge returns and certainly does not. risk with the money you invest – And you are persuaded, handing over your money, your property to them.

There are 3 most common types of investment scams in the traditional market:

– The investment project is a completely fictional ghost project, it is not real.

– Real investment projects exist, there are real commissions but you are misappropriated that money.

– The project is real, but the person who lured you pretended to be the project and scammed you into joining.

Looking back at the history of scams, the cryptocurrency market is not too different as well as old forms of scams. Take a look at some of these scams:

The first scam in the cryptocurrency market was in 2012, it was an investment program run by Trenton Shavers, promising high returns for investors and eventually $97 million of investors. investors have evaporated.

Next is OneCoin, the project highlighted by big promises, flashy and well-organized presentations to PR for their upcoming token, raised $4.4 billion in capital. la for a token with no future and no application. After the crash, one founder was arrested, the other disappeared.

Another popular investment program for a while – BitConnect. The investment program promises high returns – up to 1% per day – for investors. Legal pressure eventually led founder John Bigatton to shut down BitConnect, but not before he duped investors $2.5 billion.

PlusToken is a Chinese investment project, also with the promise of high returns for investors. It attracted the following of more than 2 million investors, increasing its value to $17 billion before the founders posted the words “Sorry we ran” on the ledger and disappeared.

Take a look at 4 out of 136 crypto projects that defrauded investors of $16 billion, as reported above. Of the 136 projects featured in the report, only 71 have been charged with criminal offences, 15 of which have team members convicted for fraud, money laundering or other crimes. The rest of the crypto projects on the list have no countermeasures.

Why today, here, at this moment we want to tell you especially new entrants to the market, because when you face scams in the crypto market, you are dealing with a scam. Face one or a group of professional scammers and in just one minute of neglect there is a high chance you will fall into a trap. Regret will soon come and I’m sure you won’t like the feeling. So, below I will give a few common stories so that you can easily recognize that trick.

According to our summary, we are easily fooled by 3 main factors:

Cupid

Trust

Lack of vigilance

The main factor is basically just that, in my opinion: we are often fooled by ourselves. The art of deception is to make you believe that your decision is right when it is not.

  1. Being tricked into giving gifts on social networks

This is a very common scam, the success rate is not high, but there will still be people who fall into the trap because it hits on “long greed” and “ignorance”. It is easily distributed in large numbers by the number of users too much and you remember the saying: No one gives you free money you will avoid this type of scam.

  1. Being scammed by impersonation nick

Your relatives and friends are being used for the wrong image, hitting on the “intimacy” you have for that person plus a little “Lack of Vigilance” to lure you into their trap. Pay attention to carefully check the information of the interlocutor before making a loan transaction to avoid an unfortunate incident.

  1. Another form of fraud: Scam calling for investment

Did you know that a large number of new investors “wet feet and legs” enter the market, or do not have much investment knowledge, are impatient and want to make quick profits is the target of scammers. Island. Scam methods in the cryptocurrency market are increasingly sophisticated and organized. List a few models for everyone to refer to.

3.1 Ponzi Model (Old But Always Effective)

It is a model like Bitconnect that you can easily imagine.

Be careful with crypto projects that encourage you to refer new investors for bigger profits.

Never trust projects where you are promised unusually high returns (several tens of percent) in a short period of time.

3.2 Malware Scams (Malware)

Simply put, in my opinion, being technologically blind when participating in the cryptocurrency market is a crime. It will cause significant damage to you.

Prevention tips:

Update your anti-virus program regularly to protect your computer and phone from malware.

Never download and install apps or software unless you are 100% sure they come from a legitimate and reputable vendor. Never open suspicious attachments.

3.3 Fake exchange site

This is a rather sophisticated scam and requires a lot of technical elements in it. This was quite common in the 2018s, when crypto exchanges emerged like mushrooms and lax regulation made the opportunity to spoof these sites easy and accessible to many.

Please check cryptocurrency exchange sites carefully when you log in.

Bookmark it again in your web browser for easy recognition when you visit next time.

Keep the following in mind, to avoid empty-handed futures.

  1. Money doesn’t just fall into your mouth by accident

If anything free fell from the sky, it would only be raindrops and bird droppings. Please remember this.

  1. Protection of personal information

Participating in the cryptocurrency market, many exchanges will ask for your personal information, revealing information to an unreliable exchange is an extremely scary thing.

Try with Primexbt trading platform, here they do not need you KYC but still have full services and methods to keep your account safe.

  1. Reject any suspicious offers

When you receive an investment offer or someone texts you to offer you a life-changing opportunity, be careful with it. It could be a real opportunity, but more than that it’s a scam. Get more information from multiple sources and verify that the investment offer is worth a try.

  1. Stay alert

Scammers will often give up if you’re alert. Ask as much as possible. Carefully review documents and contracts.

  1. Choose reputable exchanges.

Primexbt is a great option for you.

Give it a try, I believe you won’t regret it.

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  1. What if you have been scammed?

The first thing to do is stay calm and contact the authorities immediately. Describe your problem in as much detail as possible. You may never get your money back, or you may get into trouble with the law, you may look incredibly stupid and pathetic in the eyes of others – but you’ve saved many others from falling victim next multiplier. And sometimes you have to accept that we learn from our own mistakes.

Limit your greed, raise your vigilance and learn more.

Good luck on the cryptocurrency market!

A little bit about us:

Primexbt trading was born a few years ago but it has soon established itself in the financial market. Here, you can trade from cryptocurrencies, forex, commodities and indices… Outstanding advantages of Primexbt trading such as: beautiful interface, easy to use, low fees, leverage for home use. investors make money even when the market is down, complete set of supporting indicator tools, Primexbt convesting technology helps new investors to refer to trades of professional investors, Primexbt turbo technology allows demo investors before entering actual orders……

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