The 5 Major Traps in Cryptocurrency Trading: Have You Fallen for Them? 🔥🔥🔥
1. High Yield Scams: Is There Really a Free Lunch?
Some platforms or projects promote "high returns" and "guaranteed profits", even promising an annual yield of over 100%. Avoidance advice: There’s no such thing as a free lunch; the higher the return, the greater the risk. Research the project background thoroughly.
2. Fake Wallets and Phishing Websites: Your Assets Could Be “Hacked Away”
Fake wallet apps and cleverly disguised phishing websites often steal user assets by masquerading as legitimate services. Avoidance advice: When downloading wallets or visiting exchanges, make sure to use official websites and apps.
3. Contract Trading Liquidation: High Leverage Equals High Risk
Contract trading attracts many short-term investors, but the high leverage characteristic also leads to forced liquidations due to market volatility. Avoidance advice: Control your leverage ratio, don’t put all your eggs in one basket, and act within your means.
4. Shitcoin Scams: Fake Projects Are Rampant
Many shitcoins quickly go to zero after being hyped up, and some project teams directly “run off with the money.” Avoidance advice: Choose projects with a high market cap and actual use cases, and try to avoid newly launched tokens with opaque information.
5. Private Placement and ICO Scams: Running Off with Your Money
Early ICOs (Initial Coin Offerings) and private placement projects were once all the rage, but many scams lurked within.
Recently, the concept of Elon Musk has been quite popular, and he mentioned puppies in a tweet. After observation, there have been fund movements on-chain, indicating strong institutional involvement. It could be a good opportunity to get in!
