Stay Secure, Stay Educated: An Extensive Handbook for Safeguarding Your Cryptocurrency Against Scams

The explosive rise of Web3 projects has inadvertently fostered a breeding ground for scams. Even though the total illicit earnings from crypto scams dipped by 29.2% in 2023, new scamming methods have emerged in 2024, posing additional risks to crypto users as major Web3 platforms face ongoing exploits and vulnerabilities. Chainalysis Monitor cryptocurrency distributions through our platform.

Crypto scams range from Ponzi schemes to fraudulent exchanges, exploiting the enthusiasm and trust of investors and leading to significant financial setbacks. These cases highlight the inherent risks in the crypto environment, which is often plagued by dishonest actors. Airdrops Calendar .

Referring to History

Founded in 2014 by Dr. Ruja Ignatova and Daniel Dabek, OneCoin was initially presented as a legitimate digital currency. However, it soon became evident that it was a massive Ponzi scheme. After law enforcement stepped in during 2017, key figures were arrested, but Dr. Ruja Ignatova remains at large. The aftermath of this scheme left a staggering $25 billion in damages.

OneCoin

Inspired by the Korean series 'Squid Game,' the $SQUID token surfaced as a play-to-earn cryptocurrency, supposedly linked to an upcoming game themed around the show. Heavily promoted on social media, it soared to a peak price of $2,861 before completely collapsing. This incident, a classic 'rug pull,' involved its creators withdrawing funds rapidly, causing investors to lose $3.3 million. The identities of the developers are still unknown, and no justice has been served for this outrageous scam.

$SQUID

For both investors and crypto enthusiasts, staying alert, conducting thorough research, and exercising caution is key before making any investment decisions. Learning from historic scams and pushing for accountability is vital to creating a more secure and trustworthy crypto environment.

Here are some practical tips to help you spot and steer clear of crypto scams, ensuring your protection:

Before putting your money into any cryptocurrency or joining an ICO, make sure to conduct your own thorough research. Look closely at the project's details, the team behind it, and the company itself. Seek clear information, a solid whitepaper, and a track record that inspires trust. Don't hesitate to spend some extra time to fully understand what you're investing in.

• Always use reputable crypto exchanges and wallets. Be cautious of unfamiliar platforms with no established reputation for trustworthiness.
• Watch out for phishing attempts where scammers masquerade as legitimate crypto entities or individuals to steal your private information. Always verify the authenticity of emails or websites before sharing any sensitive data.
• Be wary of schemes promising unbelievable or guaranteed returns. If an investment opportunity seems too perfect, it probably is.
• Enhance the security of your crypto accounts and wallets by activating two-factor authentication. This added layer of security requires a secondary verification step, such as a unique code sent to your mobile device, in tandem with your password.
• Under no circumstances should you share your private keys.
• Stay updated on the latest crypto scams and fraudulent schemes. Follow credible sources like official cryptocurrency news sites, forums, and social media to stay vigilant and protect your investments.
• In 2024, be on the lookout for these common types of cryptocurrency scams:

Romance scams in the crypto world occur when fraudsters create fake profiles on dating websites to build trust and persuade unsuspecting individuals to invest in fake crypto businesses or transfer their assets.

AI and crypto scams make use of artificial intelligence to fabricate endorsements from celebrities or simulate real-time market predictions, misleading investors in the process. Beware of platforms that promise infallible forecasts or showcase overly polished testimonials, as they might be misleading.

Rug pull scams, also referred to as crypto MLM scams, combine pyramid scheme elements with the unpredictability of crypto. Scammers entice people to invest in their projects while encouraging them to recruit others. Once a significant amount of money is collected, the creators disappear, leaving investors empty-handed. Legitimate investments focus on the asset's inherent value, not on recruitment tactics.

Scams that promise crypto giveaways on social media typically involve creating fake profiles or hacking into existing ones, where scammers offer crypto rewards in exchange for a small amount of cryptocurrency. Unfortunately, those lured by these promises often never receive what they were promised. Real giveaways usually do not require you to send any crypto upfront, so be cautious of enticing offers.

Scams on platforms like Telegram are rampant despite their popularity with crypto traders. Scammers may set up groups impersonating legitimate organizations, enticing users with false airdrops or false alerts about security breaches to extract private keys or funds. It's vital to verify the authenticity of Telegram groups and avoid sharing sensitive information or funds based only on Telegram messages. You can help combat these scams by reporting suspicious channels, which can then be marked with a “SCAM” tag to raise awareness.

Scams on Telegram Phishing scams have stood the test of time, employing trickery to deceive users. Scammers design emails or websites that closely resemble official crypto exchanges or wallet services with the intent of stealing login credentials and digital assets. Remain vigilant for suspicious email addresses, typos, or unexpected requests for personal information. When in doubt, it’s better to manually visit the official site rather than clicking links in emails.

Always perform in-depth research, validate information, and practice caution when engaging with cryptocurrencies.

It's important to clarify that the information provided on this page should not be construed as legal, tax, investment, financial, or other types of advice. Only invest amounts that you can afford to lose, and seek independent financial counsel if you have any concerns. For more guidance, we recommend looking at the terms and conditions as well as the help and support resources provided by the issuer or advertiser. MetaversePost strives for accurate and unbiased reporting, yet market dynamics can shift without prior notice.