Common types of cryptocurrency scams that have happened so far

Crypto trading can be easy to understand if you get to the very basics. You would need a reliable source of information to get your fundamentals right. In cryptocurrency trading, there have been numerous instances of scams leading to some major losses for the investors. The loss for an investor is not just a matter of minor financial losses but also a major demotivation. Scams of larger magnitude also lead to a generalized misconception about the topic itself. This is what happened with crypto trading as well. The many scams led to huge losses and this increased the skepticism of traders in considering cryptocurrency as a good bet for investment. But then the trusted exchanges, increase in the awareness and the regulations imposed on crypto trading in several parts of the world changed the scenario altogether. Now there are many who actually believe in the validity of crypto trading and reap the profits it yields. That being said if you are looking to invest in crypto trading here are the major types of scams to look out for:

  1. Notorious exchanges

The biggest type of scam is the one that involves a fraud exchange. That is why most experienced traders tell you that if you pick the right exchange half of your work is done. There are exchanges that have been known to vanish in no time leaving no place for the investors to track their money.

  1. Unrealistic trading bots

Trading bots are such wonderful creations. There are numerous trading bots like Bitcoin Trader which are known to help even the first time investors to make decent profits. But the real trouble is with the bots that feed you with unrealistic hopes. Trading bots would be influenced by the market risks as well, very much like the traders themselves. There are bots that have made promises of making investors millionaires within days and then have turned out to be huge scams.

  1. Ponzi schemes

FOMO or the fear of missing out is gripping the current generation. So there are many that jump to try out every new trend without knowing what they are in for. Making use of this ignorance and enthusiasm there are many groups that have created a non-existing company or coin and have fooled millions of people. So when you choose a currency or an ICO, it is important to do a research on the team behind the token.