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How To Avoid Crypto Scam Schemes

Sep 11, 2023
5 min read

This blog post will cover:

  • Imposter scam 
  • Phishing & fake websites
  • Fake app
  • Giveaway scam
  • Trader scam
  • General advice on how to avoid scam
  • Conclusion

Even the newbies of cryptosphere know — cryptocurrency is secure by design. The blockchain technology is considered to be a safe place which provides not only users’ data security but also the preservation of assets. However, as with any financial sector, crypto sphere has frauds aiming to steal holders’ assets by using their tricks. Don’t be afraid — forewarned is forearmed. We have already told you about last year's famous scam cases, and today we are going to observe popular crypto scam schemes and give some advice on how to stay out of trouble. Let’s go!

Imposter scam 

One of the most often types of scam — impersonating moderators, admins or developers. This method is ancient yet still working as many crypto owners trust wrong people and share the access keys or passwords with them. Always make sure to verify the email address of anyone who contacts you.

What to do? Remember — no one except you should know your passwords, private keys, or any personal data not intended for third parties. Do not share it with anyone, especially when they are urgently demanding the information. Always check whether you’re talking with a real admin or their fake.

Phishing & fake websites

Scammers are pretty skilled at copying websites of exchange platforms, cryptocurrency wallets and other crypto services. Usually, such websites and URL names that they use are 80-90% equivalent to the original version and look almost exactly the same. However, if you carefully check the details, it will be easy for you to recognize the hoax.

What to do? Always pay attention to the URL, domain, quality of the website, its design, and other things that eventually put you on alert.

Fake app

You probably have heard of fake applications placed in Google Play or App Store. That’s a very popular trick, there are dozens of imitated games, bank apps, and messengers waiting for users to share their data. It is predictable that crypto fraudsters would use this way to rob people.

What to do? Always check the reviews and number of downloads, research the developer. Fraud apps don’t have a lot of downloads — people who get caught usually write negative reviews in order to warn others about the danger. Furthermore, it's better to get to the app of the company from its official channels.

Giveaway scam

Send me your crypto and I will multiply it! Make it x100! Have you ever seen or received such messages from anyone on the Internet? This could be some random person, or your Twitter follower, or someone subscribed to the same Telegram channel as you or even an email sender.

What to do? Never send your crypto to an unknown person. Avoid unfamiliar and suspicious projects that promise a quick profit. Always research a project — read users’ reviews and articles of reliable verified media. The lack of information on sufficient sites should be a concern. Also, do not forget to watch YouTube videos and check the project through special aggregators.

Trader scam

That’s when scammers tell you about their return and ask (or even insist) to follow their advice. But not every piece of advice can be useful. Sometimes it hides a crypto fraud scheme, where fraudsters propose using some fake crypto wallet app or a copied exchange website that could help them to steal the holder's assets.

What to do? Do not believe in unrealistic “100% guaranteed” returns, always make sure to do accurate research. All the projects must own a whitepaper that explains the creation of cryptocurrency and the way it works. Avoid poorly written and incomplete whitepapers, beware of the concepts that do not have this type of document, and traders who promote them.

General advice on how to avoid scam

Crypto frauds could be very convincing. Some could make up a fresh plan on how to make a robbery. Defend your assets by following these easy preventive steps.

Protect your crypto wallet. Investing requires a wallet. Make sure your wallet keys are as private as possible and do not share them with anyone.

Keep an eye on your wallet application. Download it from the verified official platform. The very first time you transfer money to confirm the validity of a wallet application, use the smallest possible amount. While updating the wallet app, look out for suspicious behavior and stop the upload if you notice any.

Invest in familiar things. If the project or crypto is not 100% understandable for you, do not waste your money. Always do good research in advance.

Don't be in a hurry. Usually scammers use high-pressure and ask you to invest instantly. They can offer great discounts and bonuses, a fast result or even guarantee to make you a billionaire. Don’t be in a rush. Take your time and check the person you are talking to and the project you are going to invest in.

Be aware of ads on social media. Such advertisements usually look suspicious. They are too bright, contain big slogans promising to give you a secret scheme which will provide you with an instant profit. Sometimes they have the celebrities’ faces on them. Stay calm and skeptical — not every banner is meant to bring you a real profit.

Ignore cold calls. Someone’s calling you with a great investment offer? That might be a scam. Never reveal your personal data or send crypto to somebody who decided to contact you that way.


Nowadays there are plenty of scam schemes that can change depending on the situation. But there are always a few red flags that should get your attention before making a mistake. Remember that it is not scary to meet a crook if you’re aware. Mind our advice and be careful, do not trust everyone on the Internet, and keep your crypto safe.

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