How to Avoid Ponzi Schemes in the Crypto Space: A Checklist

If you have been in the crypto industry for a couple of years, you might have heard of two types of crimes. One, the cyber attacks, which like any other attack is an open threat, and the other, just a result of lack of awareness, are Ponzi schemes. Conmen have found a new playground in the crypto space, mainly because most crypto holders are unaware of the functioning of the industry.

Most people hold a myth that Bitcoin and other cryptocurrencies are tools of making huge money in less time, with minimum investment. This very notion has led thousands of users online to be conned, costing the industry millions of dollars. What’s the solution? Quite simply, more awareness!!

Here are a few things which each crypto investor needs to keep in mind to avoid falling into traps:

Check the Company’s Social Media Accounts and Team

Whenever you receive an offer from an unknown source, offering you $50,000 for a Bitcoin, just because they think it will reach a million in five years, just pick up your phone and search for them on Twitter. Check their joining date, a number of followers, tweets, replies, and of course, if their accounts are verified.

A con company or individual generally uses new accounts every time and have very few followers. If that’s the case, just block them from wherever you can. Also, even if they have a decent following, check for the team members. Look who’s behind the company, the CEO, the COO, the CTO, etc. If you find dubious names, just avoid them, and move on in life!

Check Crypto Forums, Ask Questions, Search Recent News

Like any other modern industry, crypto space too has a lot of online forums where newbies can get a fair idea about companies, projects, and tokens. If you get any “too-good-to-be-true” offer, enquire about it in these forums, you will always get helpful replies.

Apart, from online forums, look out for recent news about the companies or individuals approaching you. If you find anything dubious, report it through appropriate channels. There’s a great possibility that the fraud group or individual must have targeted several other users.

In Case of Established Company Names, Contact Them via Telegram

Many times, scammers take names of big companies like Ethereum, or Tron, or even traditional names like Google or Amazon, and try to sell decorated schemes to you. This makes it quite essential to check every such attractive scheme which asks you to make crypto payments.

In the case of traditional companies, contact their customer care team via phone or email. But in the case of crypto companies, it’s quite simple. Almost every well-known crypto company has a telegram group/channel for its users. You can verify the schemes by getting in touch with the admin or other representatives.

Read Crypto Related News Everyday (Headlines at Least!)

If you do not wish to be fooled by anyone at any time, the best idea would be to keep yourself updated about the latest developments in the crypto world. You can do this by following reliable crypto news portals, reading about the projects that interest you and keeping yourself abreast with the upcoming events, schemes, contests, and giveaways.

Being informed about the current affairs of the crypto industry will not only equip you against Ponzi schemes but will also give you a better understanding of the crypto market.

Learn How Cryptocurrency Works, Join Programs, Workshops

The best way to avoid being conned is to hone your skills and become an expert. Yes, it will no doubt take time and consistent efforts, but eventually, you will realize that it is actually worth it. If you work for a few months on learning the basics of crypto like functioning, mining, trading, exchanges, wallets, etc., you will become a hard nut to crack for criminals!

Many companies offer basic training on how cryptos work, and what’s the process behind them. Almost all projects maintain a blog which brief you about new developments in the industry, as well as about the existing processes and functions. If you’re serious enough, take up a crash course on crypto trading. Also, participate in workshops by crypto enthusiasts and experts around you to keep yourself up to date with the world of decentralized currencies.

As per a recent study, the majority of the enthusiasts get lured by schemes like free world trips, free laptops, computers, phones and so on. Therefore, it becomes essential for every crypto enthusiast to understand that nothing in the world is free, and certainly not in financial markets.

The above-mentioned measures would definitely go a long way in helping you keep yourself far away from Ponzi schemes.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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