SCAM ACTIVITIES IN THE DIGITAL CURRENCY MARKET

Hello to everyone in this great community and on the steemit platform entirely. I greet you all in warmth spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health. It has been a great week so far and I hope we all are having a good week going.

Today, I am here once again to discuss with us all regarding an important topic regarding the ways to detect cryptocurrency scam . Why not stay with me as I unravel the above topic to you all. I wish you a happy reading!

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The space has become a thing to ponder about and everyday we get to notice new methods by which culprits make use of to scam investors and users of cryptocurrency. These activities occurs in various ways and today I will be highlighting some of the ways by which we can detect cryptocurrency scam. A few are seen below.

SOME WAYS TO DETECT CRYPTOCURRENCY FRAUDULENT ACTIVITIES

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There are ways we can spot this types of crypto scams so that we do not fall a victim to them and the below are some of the ways to spot this crypto scams.

• HUGE PROFITS ON INVESTMENT - This is the first thing you have to watch out for as an investor. The percentage of the profit you get should be looked into, do not accept to invest on platforms that offers you more than you have ever been offered before because that is a trap.

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We all know that we humans especially investors are insatiable, we are never contented with what we have and so we quickly dashed into things that brings huge profits without knowing the source of the profit or analyzing the outcome of the investment.

We all should be skeptical about platforms and investments that offers to give investors high profits. Ask questions and do research about the investment before you go ahead.

• INVESTMENT WITH REFERRAL PRESSURE - This is another way of spotting crypto scam. There are platforms that comes with great and enticing offers but comes with a condition that you must come with referrals in other to get more profits. The act by which pressure is exerted on users to come with referrals to get extra rewards is also a sign of fraudulent activity.

When I first sign into the steemit platform, I asked so well if there is anything called referral bonus and the person who signed me up said No. And that was how I affirmed that this platform is legit.

Yes, I know there are legitimate platforms out there that gives out referral bonus to individuals when they bring in people, but when pressure is being used then that investment is not legitimate. So we better watch out for such scenario concerning an investment.

• INVESTMENT WITH NO WHITE PAPER - Now the white paper carries what a business or industry is out to do, the aims and objectives are embedded in the white paper alongside everyone connected to it. So with the white paper, all investors are rest assured of where their funds is going to.

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But any investment, businesses or industry that comes without a white paper should be considered as a &scam*. This is why wise investors always want to see the white paper of a particular investment before they invest their funds in it.

Do not invest your money in a business that has no white paper because it is very risky and it can be considered a scam.

• UNKNOWN BUSINESS OWNER AND MEMBERS - This is another way to spot a scam activity. When a business has no known ownership and members that operates the business, it is considered as a fraudulent activity and as such, one should not invest in such kind of business.

Because by the time a user start having issues, there would be no one to meet or talk to because the people that oversees the business are anonymous and in no time, you funds can be taken away without your notice.

• NO VALID INFORMATION ABOUT THE INVESTMENT - We have noticed that many businesses do not have a concise information about what they are set to do, where they can be contacted, their head offices and so on.

This is in no doubt a scam, so we all are expected to read more about a project or an investment before investing because many of these projects do not have valid and vital information about themselves, they don't reveal their true identity to their investors and this is a problem. So do not invest in business with no information about themselves to the public.

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For the fact that I haven't faced cryptocurrency scam before is not a yardstick for me to take the issue likely but I know a friend who has been scammed before. There was this day he saw a link that was dropped by an unknown user and the message that came with the link is about how to maximize your cryptocurrency token to make more profit.

So he clicked on the link and eventually, he got logged out. So when he tried logging in, the browser will log him out and that was how some amount of asset in his wallet was transferred out to an exchange. It was via roqqu wallet exchange application.

Immediately he raised an alarm to the customer service and within a short while after setting
a two way verification factor, his account came back to normal. As that was done, the fraudster couldn't assess his wallet again, and from that day, he learnt his lesson not to ever click on random links no matter how enticing and fascinating it is.

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CONCLUSION

It is necessary that we adhere to basic principles and be guarded about the various scams that are happening now in the cryptocurrency world. We get to see different ways of fraudulent activities in this space and before you do a thing it is advisable to always inquire before going further to avoid you getting scammed.

Thank you all for having me today. I will see you next time.