5 tips to recognize and avoid scams

5 tips to recognize and avoid scams

By yanis | little crypto guides | 25 Jun 2020

There are many scams in the crypto world. I'm sure that, if we would put all scammers in prison, we wouldn't have enough prison cells. So, in this article, I'll let you identify them.


1 - They give very high yields

Many scams give you very high yield percentage. But they doesn't the money and, when users want to withdraw their "earnings", they receive nothing.


2 - It "runs" with referral system

If users can earn many by referring other users (or when other users make deposits), it is a scam. If referral system uses multiple levels, double or triple warning.

All referral systems aren't bad. The problem is if referrals are the main purpose of the website, and if users have to deposit (they can't steal money you didn't give them).


3 - They doesn't give technical informations

I'm sure that you already seen ads for cloud mining. Mining txns (solo mining) or pool payout (pooled mining) can be seen on blockchain explorers. If they can't give them, they aren't really mining and they try scamming you.


4 - CEO's name is hard to find

On legit websites, we can see CEO's name and contact him/her easily. If you've to crawl all the site without seeing anything, it is because thay want to stay hidden. Why do they want to stay hidden ? Maybe a problem for the day they'll close the website without any information.


5 - Url isn't exact

If url isn't correct (binances.com instead of binance.com, for example), it is fishing. So pay attention to website url. Another good thing is using google authenticator 2FA, because they doesn't have the key used for generating 6-digits numbers (so they can't steal the account).


BONUS : Something used to let it seem legit

If they say things like "it is in a smart contract, it can't be a scam", it is fake. A smart contract is a program running on blockchain (often on ethereum), and code can be purposed for good or bad things (the same programming language can be used for making nice tools and malwares).

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