There are many different kinds of cryptocurrency scams that are victimizing people who are new to the crypto world. Con artists prey on those who dont know the difference between a legit crypto platform and a fake one, who dont know a Ponzi scheme from a legitimate affiliate program. These scammers fool people into thinking that their well-designed websites give them a semblance of legitimacy, but on closer inspection, these sites wont pass muster. Here are some giant red flags you should be aware of:
1 Website Has No SSL Certificate
Its very important for a website that deals with cryptocurrencies to have an SSL (Secure Sockets Layer) certificate installed. Websites with no SSL only display HTTP before their domain names and websites with SSL show HTTPS. Many scam websites are here today, gone tomorrow types of sites, which means once theyve scammed a certain number of people, theyll shut down that site and move on to a fresh domain. Its quite easy to transfer website files from one domain to another; this is why these scammers can set up shop very quickly.
2 The Offer Is Too Good To Be True
Whether youre trying to get the best rates for your dollars or bitcoins, its only natural that youd want the best possible deal. Since cryptocurrencies are decentralized, most crypto exchanges have their own exchange rates. However, these rates dont vary by much. If you see a website offering rates that are significantly lower or higher than other established exchanges, then its a giant red flag. Its better to do business with a trusted platform with higher fees than to try to get the best deal out of an unknown website that could possibly swindle you out of your entire fortune.
3 Beware Of Ponzi Scams
Some Ponzi scams are not as obvious especially if theyve been around for a few weeks or months. This is because their first members would already have received their profits (derived from payments by new recruits) and would be posting glowing reviews on the Internet. At first glance, you might be fooled into thinking its a legitimate crypto operation especially if you personally know someone whos made money from the scheme. Check out those positive reviews, and youll see theyre basically saying the same thing. Wed even like to bet they would have their affiliate or referral links somewhere on the review.