1. Never trust 'guaranteed returns' projects: Many scams use 'guaranteed returns' as a lure, claiming that as long as you invest funds, you can ensure high returns. Such projects usually lack practical technical support or sustainable business models and may only pay early investors' returns by continually attracting new investors.
The most memorable scam project—Plus Token platform. It claimed to be a 'cryptocurrency wallet' service and promised high returns, attracting a large number of investors. However, the project actually used investors' funds to pay 'returns' until the project collapsed. In 2019, PlusToken was exposed as a Ponzi scheme, with losses amounting to billions of dollars, causing many users' investment funds to evaporate.
2. Beware of airdrop and contract scams: Many scammers forge airdrop activities to collect users' private keys or recovery phrases. Once participants submit personal information, they will lose all assets in their wallets! (This is also one of the main reasons why newbies are not recommended to use wallets.) Never disclose your wallet's private key or recovery phrase to anyone, and choose well-known projects for airdrop activities to avoid participating in contracts or airdrops of unknown origin.
3. Beware of 'phishing websites' and phishing links: Phishing attacks forge the official websites of exchanges or wallets to lure users into entering their accounts and passwords, thereby stealing funds. Phishing websites typically attract you to click through fabricated links or social media messages.
This is the most common scam in the crypto world! Whether in the crypto field or daily life, never click on random links! Always scrutinize the domain name of the link carefully! Raise awareness against fraud!
4. Avoid the temptation of 'high leverage' trading: High leverage trading can allow you to earn higher profits, but it also means greater risk. Many platforms attract users to invest through high leverage, which can lead to liquidation even with slight price fluctuations.
5. Do not blindly follow trends and FOMO emotions: FOMO (Fear of Missing Out) is a major trap in the crypto world. Many investors blindly follow the crowd after seeing others make money, leading to losses. Especially with some 'air coins' or 'bubble coins,' their value is unstable and prone to collapse.
This is something that almost every newcomer will encounter in the future! Actually, the method to avoid it is very simple! Manage your positions well! Only trust Bitcoin!
6. Beware of 'crypto gurus' and coin recommendation scams: Some people or teams claim to be 'crypto gurus' or 'investment experts,' using their influence on social media to spread false information or overly optimistic project recommendations, encouraging fans to buy a certain cryptocurrency or participate in a project. The purpose of such scams is to guide retail investors into the market, allowing them to quickly sell off their tokens in a short period, resulting in 'cutting leeks.'
This is also something that happens every day in the crypto world. I hope you have good luck in finding a true guru!
7. Fly-by-night exchanges and wallets: Some unregulated small exchanges or wallets may have security vulnerabilities, making them susceptible to hacker attacks, leading to the loss of user assets. Or the exchange may directly rug pull!
8. Deposit and withdrawal traps: No merchant will proactively contact you privately! Those who message you want to lead you to small platforms!
I've written enough about crypto traps for now~ I hope these tips can help you stay cautious and rational in the crypto world, avoid common traps, and achieve stable investments.