Every time the bull and bear markets alternate, many newbies will enter the cryptocurrency circle, but the cryptocurrency circle is also full of scams and pitfalls. Tangtang is very distressed to see many people being cheated of their money every day, so here are some common scams to help you avoid detours.

1. Exchange phishing websites. This scam is usually leaked by the third-party OTC service providers of the exchange, and then a high-imitation exchange website is sent to you via SMS, deceiving you to log in to the exchange and then transfer your coins. Now this scam has begun to spread to decentralized wallet applications and email links, so everyone should be vigilant.

Here I would like to remind everyone not to click on unfamiliar links casually!

Don’t click on unfamiliar links!

Don’t click on unfamiliar links!

2. Cryptocurrency phone scams. After obtaining your transaction information and contact information through gray channels, the scammers contact you by phone, using the excuse that your assets involve black money and need to be "transferred" to defraud you. Many newbies fall for this scam because the scammers can accurately tell you your transaction records. Please note that if you receive such a call, go directly to the official website to find the manual customer service to verify to avoid being deceived.

3. Arbitrage scam in telegram groups. There are many such groups on telegram, usually ETH for HT (now there are other token names such as HPT and Binance Chain interest etc.), the group is full of shills, dozens of accounts take turns to say that arbitrage can make money, with guaranteed returns. In 20 years, the police caught a gang that actually defrauded hundreds of millions of yuan by this means. In order to gain the trust of novices, the scammers also made high-end videos and complete arbitrage processes! Everyone must keep their eyes open and stay away.

4. Institutional private placement/investment on behalf of others. Generally, you transfer stablecoins such as USDT to an institution or group owner to buy on your behalf, and others will transfer the tokens to you after receiving them from the project party. This operation has a pitfall: ① Others may run away directly after getting your stablecoins; ② The projects obtained by the institution are junk projects, either they crash the market directly after going online, or the tokens are not worth anything and are not issued. When choosing institutional private placement, you must consider the integrity and strength of the institution through multiple channels and dimensions, otherwise it will be a waste of time.

5. Big V + community dog ​​projects. Previously, Animal Coin made decentralized coin issuance popular. Since coin issuance is simple, many people issued their own coins and then went to various communities to promote and deceive people to take over. Generally, such projects will directly clear the capital pool and run away after the entry funds are almost enough. Some scammers even only cheated 1 ETH or ran away after 5 minutes of going online. Xue Manzi's Doge DeFi also cheated many people. In order to promote his garbage project, he also invited Japanese actress Takizawa Rola. A 68-year-old man is also trying his best to cheat leeks.

6. Fake exchanges/wallets run away. If you want to play with cryptocurrencies, you must go to a formal large exchange. Generally, there is a high risk that unknown fake exchanges will run away.

7. Wallet authorization is stolen. Scammers use the high price of U, defi projects and other reasons to ask you to scan the code or obtain wallet authorization, and then steal all the U or tokens in your wallet. Some users even lost hundreds of thousands of U. So be vigilant and don't scan the code casually.

8. Fake tokens to deceive U. For example, a certain token is not online, they generate an unofficial token on the chain, the name may be the same, and then ask you to exchange USDT for their worthless fake tokens. As a result, you may think you have made a great deal, but you often fall into their trap.

9. Teachers who lead orders. First, build a persona, a master of buying high and selling low, and charge you a group fee. This is the first wave of cutting leeks.

The second wave recommends unknown small currencies. They have been lying in ambush for a long time and are asking you to carry the sedan chair. Or some currencies are made by themselves. After all, the cost of issuing a currency is only a few dozen yuan now.

Later you find out that most of these groups are directed and acted by this teacher himself, with only a few of you as real people. Now this market is very mature, and there are special teams to attract people and build popularity.

The way to prevent this is very simple. 99.9% of the teachers who guide you are scammers. The 0.1% who can make money don’t have the time and don’t care about you. Ask your teacher if he dares to open a real account.

10 Someone exposed their private key.

One day, you found someone in a comment saying: I don’t want to play anymore, this market is too tiring, I will give the remaining 100U to the right person, and then attach my private key.

You import it and find that it is indeed real, but you cannot transfer the money because there is no handling fee.

When you have recharged some ETH and are about to transfer the money, you find that someone has transferred the ETH you recharged before you.

This scam is not common and the losses are not large, but it does happen.

Last time I posted this scam, a great guy came and took the scammer’s money away...

Ordinary people don’t have this skill, so they can only avoid it and not think about taking advantage of others all day long.

In summary, the reason why scammers are successful is that they know how to take advantage of human weaknesses, FOMO plots and lack of experience. Therefore, when investing in cryptocurrencies, everyone must improve their cognitive level, not be too greedy, and maintain a rational investment mood.

If you find this article useful, please share it so that people around you will not be deceived and reduce the tragedy of losing both life and money.

(FOMO is the abbreviation of "Fear of Missing Out", which means fear of missing out in Chinese. It refers specifically to a person's fear of missing out. In the cryptocurrency world, when the price of a coin continues to rise, this "fear of missing out" is more common and is called the FOMO phenomenon.)