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What Is a Crypto Scam and How to Stay Safe from Them?
If the answer to the question of “Is crypto a scam,” is “no,” then the next question is “What is a crypto scam?”

Cryptocurrency itself isn’t a fraud. You can make legitimate transactions with a merchant using cryptocurrency and not be bilked for your cash. It won’t mean that the merchant will definitely hack your Bitcoin wallet or overcharge you.

However, the nature of cryptocurrency and the blockchain makes it easier for crypto scams to function and to get away with their underhanded activities. How does a typical Bitcoin fraud work? The following are signs of crypto scams:
Lack of transparency

Relies heavily on social media to attract customers or clients
Asks for sensitive information
Aggressive tactics
Unrealistic promises
Not licensed

Blockchain and social media make it relatively easy for operations to function anonymously. Anyone can start a social media page under a fake name and can start selling fake goods and asking for cryptocurrency. They don’t need to reveal who they are, where they are located or anything about their business.

Beware of companies that don’t have websites but rely heavily on social media to find customers. It isn’t uncommon for bitcoin scams to meet customers on social media and ask them to start communicating on WhatsApp, where there is less oversight.

Another sign of crypto scams is that they ask customers for sensitive information. They may even request crypto wallet keys or codes. Never give these away – it’s a major red flag.

Fraudsters won’t take no for an answer. They will keep at you. No legitimate business acts this way. Crypto scams will also give you unrealistic promises. This is particularly true of bitcoin brokers and crypto mining. They may claim you’ll make double-digit returns per month. This is patently untrue – no broker can promise returns.

Brokers and merchants who are unlicensed should be shunned. Always verify licenses and contact information.

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