2023 was a strange year in many ways. It was the first year after 2023 and all that has happened because of the global pandemic. Humanity needed to adjust to a wide array of different regulations, rules, and a new way of life. It needs to be said that the cryptocurrency market has also experienced some strange things, with all the ups and downs, mainly in the value of key players on the market.
Probably the most shocking thing this market has experienced is the fact that roughly $14 billion worth of digital currencies were lost as a result of scams. Most of them happened because traders and owners didn’t use credible apps and sites. If you want to take a look at one of these, be sure to follow this go url. Now, let’s talk about a couple of types of frauds in this market and how can you avoid them.
1. Phony Sites
When you know how popular this market has become in the last couple of years, then it shouldn’t surprise you how many imposter websites are out there. Even the most experienced traders and owners are not fully protected from these. There are many stories you can find online that speak about how these sites scam people for quite a big money. In most cases, traders are not even aware of it until it’s too late.
The reason is that countless sites try to mimic credible ones. Thankfully, there is a way you can recognize these sites. The first thing you should do is take a look at the site’s URL. The clearest sign something is wrong with these is when the URL doesn’t have HTTPS and a small lock icon near it. While there are some examples of credible sites that don’t have these, you should think twice before entering.
When you enter a site like this, it will redirect you to a phony site. Therefore, making any sort of transaction on these will immediately mean that you have lost your coins for good, which is something you will not enjoy. These scammers have become so skillful at what they do that they can cheat even people who have spent years in the market.
2. Investment Scams
The next factor we want to talk about is investment scams. It revolves about providing false information about certain sites or apps’ credibility to traders. Usually, scammers talk about an opportunity that will make your reach. Then, they would ask owners to send them a certain amount and say that they can consider this transaction to be nothing short of investment into a certain concept.
Sometimes, they can present themselves as a credible website, and to be fair, there is no real way for you to determine whether they are legit or not. The only thing you can do is think about this strange approach, and say no. After that, you can visit that particular site and see whether it offers this possibility to its users and any other owners who want to deal with them.
There are two main types of investment scams. The first one is called an “exit scam”. It happens when scammers claim that they raise money to invest it, and then they simply disappear without any trace. The second type is called “a rug pull” which happens when a new coin is generated and is presented by an exchange. When someone gets it, it will become clear that it is worthless.
3. Fake Mobile Apps
One of the most severe crypto scams out there is conducted through fake mobile apps. You have certainly seen a plethora of ads that present some apps as the best choice for your participation in the market. Well, chances are that some of these are completely fake, even though you can find them on credible places like Apple App Store and Google Play.
Sure, a vast majority of these are banned by these two stores, but there is always a chance that a handful of them will remain online long enough to cause significant financial damage. When you conduct online research, you will see that there are thousands of people who have downloaded one of these.
Some would say that Android users are at a somewhat bigger risk, we wouldn’t agree with this statement. Hackers and scammers are skilled at creating great-looking apps that can cheat even the most experienced traders out there. There are a couple of ways you can recognize them. Be sure to find possible misspellings and strange things about the brand itself. At the very least, consult Google about their credibility.
4. Market Manipulation
Finally, we want to talk about market manipulations. When we say this, we think about situations when someone attempts to influence the asset price. Basically, frauds will manipulate the market, and set the prices in their favor. Furthermore, they will make instant returns. That way, the trader doesn’t have any possibility to act to return their funds. There are many sorts of market manipulation.
Spoofing is an illusion that produces false buy and sells orders. Plus all of these will be canceled even before they are filled. It is done by using false accounts that impose large trades and providing other traders with wrong information about whether demand is rising or dropping. It creates the wrong impression among traders and it provides them with a significant financial benefit.
Front-running is a concept that influences traders to make a decision based on future transactions. It means that operators and traders will take a look at the current traders who haven’t been concluded. Then, scammers will breach the security layers and make adjustments in these transactions just before some major swings on market start happening.
The Bottom Line
While the cryptocurrency market can look like a safe haven for many people out there, it needs to be said that it is not without potential dangers. Here, you can take a look at the commonest scams you can come across. By understanding them, you have a higher chance of avoiding them completely.