Pitfall Guide - Stay Away from Cryptocurrency Traps (Part One)

1. Never trust projects that claim 'guaranteed profits': Many scams attract victims with promises of 'guaranteed profits', claiming that as long as you invest money, you can secure high returns. Such projects usually lack real technical support or sustainable business models and may simply use new investors' funds to pay early investors' returns. The most memorable scam project is the Plus Token platform. It claimed to be a 'cryptocurrency wallet' service and promised high returns, attracting a large number of investors. However, the project merely used investors' funds to pay 'returns' until it collapsed. In 2019, PlusToken was revealed to be a Ponzi scheme, leading to losses amounting to billions of dollars, and many users' investments evaporated as a result.

2. Beware of airdrop and contract scams: Many scammers fake airdrop activities to collect users' private keys or mnemonic phrases. Once participants submit personal information, they risk losing all the assets in their wallets! (This is also one of the main reasons why newcomers are not recommended to use wallets.) Never disclose your wallet's private key or mnemonic phrase to anyone, and choose reputable projects for airdrop activities to avoid participating in contracts or airdrops from unknown sources.

3. Be cautious of 'phishing websites' and phishing links: Phishing attacks lure users into entering their account and password by impersonating the official websites of exchanges or wallets, thus stealing funds. Phishing websites often attract you to click through fake links or messages on social platforms. This is one of the most common scams in the cryptocurrency world! Whether in the crypto space or everyday life, never click on links randomly! Always scrutinize the URL and domain name carefully! Raise your awareness against fraud!

4. Avoid the temptation of 'high leverage' trading: While high leverage trading can allow you to earn greater profits, it also means greater risk. Many platforms attract users to invest with high leverage, and even minor price fluctuations can lead to liquidation.