Let’s face it. Most people don’t really understand cryptocurrency. This makes it terribly easy for investors to end up in Coin Hell. Imagine the feeling of sending million of dollars worth of currency to a Nigerian Prince, to find (shocker) it was a scam. I’m here to keep you on the stairway to heaven. Here are the 7 Deadly Sins of Crypto Investing, and how to avoid them.
The Classic Scam
“Hello? This is the IRS. We need you to send half of your Bitcoin to this sketchy web address. If you don’t, we'll be forced to take legal action.”
Don’t fall for this. Anything that gives you a time limit before “dire consequences” fall upon you is for sure a Classic Scam. No quick money schemes or “congrats you won the lottery” emails are real. Stay alert for these.
The anonymity of cryptocurrencies creates some problems. As always you shouldn’t click on unknown email attachments or potentially dangerous links, but in the age of Bitcoin hackers malware popups have gotten more crafty.
As a general rule, stay away for anything that promises coin mining for free. There are safe sites out there, but you’ll never reach them through suspicious links.
These are all over the internet. Websites are promising big results from cryptocurrencies that are sure to be the next big thing! You can purchase yours now! Don’t fall for these either. Oftentimes the creators know their product is worthless, or nothing more than a ponzi scheme. Be sure to do your research!
This has gotten a lot of people lately, and it’s difficult to track who the fakers are and aren’t. To be sure your bitcoins are in safe hands, use a well established service. There is safety in numbers.
These are popular because they’ve worked for years outside the crypto industry. Operators make millions at the expense of those at the bottom of the pyramid.
These are tricky. They ask you to log in to your account in order to start trading. Once you’ve given them your information, they try to log into your real account. As always, make sure you're logging in on trusted/encrypted sites.
Too Good to be True
Someone is going to sell me 5 bitcoins for $100? I’m in.
No, you’re not. No one is going to cut you a deal on coins. There is too much money to be made.
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