If there’s money to be had, con artists will try and take it from you. Crypto is no exception. In fact, crypto is a prime target for scammers who take advantage of the nascent technology and the general public’s lack of familiarity with blockchain tools to position themselves as experts or leaders in the space and gain trust.
Even though in 2022 crypto underwent a dramatic downturn, crypto scams were on the rise. According to data from CertiK’s 2022 “Web3 Security Report,” last year “was the worst year on record in terms of value lost from Web3 protocols. Cryptocurrency losses due to hacks, exploits and scams in 2022 reached an all-time high of $3.7 billion – a 189% increase over 2021’s previous record of $1.3 billion.”
In this article we’ve rounded up the most common scams to explain what they are and how to identify them so you can protect your wealth.
1. Bitcoin scams
The second-largest stablecoin in crypto has restored its dollar peg after a tumultuous weekend, but it shows how important the token is in the ecosystem. It’s important to understand how new crypto tokens are initially distributed and who gets access to the first offering of a new coin, whether you’re an investor or thinking of launching a token of your own. When staking ADA tokens, users can choose whether to outsource the process to delegate stake-pool operators or run their own Cardano staking pool. Make your crypto work for you and earn passively while holding. The highly speculative nature of cryptocurrencies makes them an ideal target for scammers, especially on social media. Here’s how to protect yourself. Con artists preying on people looking for love is nothing new, but the latest scams have moved on from asking you to buy gift cards to an array of crypto scams.
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