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Crypto Traders Beware of Crypto Scams

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Cryptocurrency-related scams and hacks have grown to become one of the largest dangers when it comes to crypto trading in recent years. Scammers were interested in cryptocurrencies from the beginning, but their actions increased in number and sophistication exponentially after the crypto hype of 2017.  As a result, millions upon millions of dollars in crypto were reported stolen in the last few years.

At first, scammers were mostly targeting people through phishing attacks via email. However, their methods quickly evolved, and soon enough, they jumped on the ICO bandwagon. The situation has become so bad that crypto investors had to check, double check, and triple check every single investment, and even then they could not be certain that they are not being tricked.

Luckily, the ICO trend has ended, and not a lot of people willing to invest in random ICOs remain these days. However, numerous scams still remain fresh in investors’ memory. With that in mind, here are a few examples of some of the biggest and most damaging scams reported in recent years.

1. Phishing scams

As mentioned, scammers originally started tricking people through phishing attacks. The methods they used are relatively typical for this type of an attack, which was present on the web long before cryptocurrencies appeared.

The process is simple — hackers would obtain the email address of a crypto investor, and try to trick them into giving away sensitive information. A known scamming attempt is when scammers make a fake online page that looks exactly like a legitimate website, such as one belonging to a crypto exchange.

All that the scammer needs to do at this point is tell their victims that there is something wrong with their accounts and that they need to react as soon as possible. Of course, they would also provide a link to the fake page, on which the victim is expected to click and try to log into their account. At this point, scammers have obtained the victims’ login credentials, which they can use to access their funds. The same danger exists when it comes to hot wallets, which is why it is always advised that traders and investors pay close attention to the links they click.

2) Fake projects

Fake crypto projects have become almost a norm in the crypto world at some point. As soon as the crypto prices started rising, investors started buying more coins and investing more money. The scammers quickly realized that some of them would invest in almost anything without too much research, in fear of missing out on a great opportunity. Because of this, numerous fake coins rumored to be Ponzi schemes started appearing on the market.

One of the biggest ones so far was Bitconnect, which had its own coin, its own platform, and it looked real apart from the fact that it promised astronomical returns to all those who invest in it. The project attempted to attract as many users as possible through a lending program, where users were supposed to send their BCC coins to others in order to get them interested.

3) Scammers using celebrities to trick investors

While searching for better ways to quickly attract net investors, scammers quickly realized how much potential celebrities have when it comes to promoting their projects. Celebrities have millions of followers around the world, most of which are not familiar with cryptocurrencies and dangers that lurk in the industry.

As such, they are easy targets, and scammers soon partnered with many celebrities to attract these new investors to crypto, and their fake project in particular. The best-known cases of celebrities partnering up with fake projects include DJ Khaled and Floyd Mayweather. Of course, this does not mean that all crypto projects partnered with celebrities are fraudulent. Instead, it only means that investors need to remain careful when researching the project, no matter who supports it.

Obviously, caution while investing in crypto projects is of utmost importance in order to secure your funds and avoid being scammed. Each project needs a deep amount of research, as well as the team that is running it, as scammers often post made up credentials, and use stolen names and pictures.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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