Cryptocurrencies are a hot topic, and it’s not surprising that people are looking for ways to make money off them. There are many legitimate ways to do this, but unfortunately there also seem to be a lot of scams out there. I’m going to go over some tips on how you can avoid falling prey to crypto ponzi schemes and stay safe in the world of cryptocurrency investments.
The first and most important thing to remember is that you should never invest more than you can afford to lose. If there’s one thing we’ve learned from the crypto market over the last few years, it’s that investing in new projects comes with a lot of risk. Even some of the most successful projects have seen their share prices drop by 80% or more in just a few months (e.g., Tron).
Don’t Fall For Scam Projects
To help prevent yourself from falling victim to a scam project, here are some signs:
- The team members have no social media presence (or their social media accounts were created recently).
- The company claims to be registered somewhere outside of your jurisdiction (e.g., Hong Kong). If this is true, then there will likely be very little regulation around how they operate – and even less recourse if something goes wrong with your investment!
Popular Crypto Ponzi Schemes
Ponzi schemes are a type of investment fraud that involves the payment of returns to existing investors from funds contributed by new investors. The scheme involves an organization that issues shares or units to investors in order to raise money, and then uses remaining funds for personal gain instead of investing it as promised.
Ponzi schemes usually begin as legitimate businesses or investments but eventually collapse because they lack a credible source of revenue other than new recruits buying into the program for more money. Ponzis often promise high rates of return with low risk, which lures in more people who want access to quick profits (and sometimes even free gifts).
- Onecoin operated as a multi-level marketing (MLM) scheme, where members were encouraged to recruit new investors and were promised lucrative commissions and bonuses for doing so. The company claimed that Onecoin was backed by gold reserves and had a fixed supply, but these claims were never verified or proven.
- In January 2018, Bitconnect suddenly announced that it was shutting down its lending and exchange platform, citing legal and regulatory pressure. The value of BCC tokens plummeted, and many users lost significant amounts of money. Bitconnect was widely criticized as a Ponzi scheme, and it faced legal action from regulators in the United States and other countries. The founders of Bitconnect faced numerous lawsuits and criminal charges for fraud and securities violations.
- PlusToken was a cryptocurrency wallet and investment platform that operated from 2018 to 2019. It was promoted as a high-yield investment opportunity that promised daily returns of up to 1.5% on users’ investments. Users could invest in PlusToken by purchasing its native cryptocurrency, PlusCoin (PLUS), and depositing it into their PlusToken wallet. The platform claimed to use advanced trading algorithms to generate profits, which were then shared with users as daily interest payments. However, in June 2019, the platform suddenly stopped processing withdrawals, and users were unable to access their funds. It was later revealed that PlusToken was a massive Ponzi scheme that had defrauded users of more than $2 billion worth of cryptocurrency.
How To Safeguard Your Investments From Crypto Ponzi Schemes?
To safeguard your investments from crypto ponzi schemes, it is important to invest in projects that are transparent and have a working product.
If you want to avoid scams, do not invest in projects that don’t have a good team behind them. And finally, make sure the project has a good roadmap with clear goals and objectives so that you know what they are going for in the long run.
Binance Smart Chain Airdrops. How To Recognize A Fake
Binance Smart Chain airdrops are one of the latest trends in the crypto industry.
Binance is one of the biggest cryptocurrency exchanges and it has started airdrops for its users, who can claim free tokens for different projects by simply registering on Binance and completing their KYC process. These airdrop tokens will be added to your account after some time after completing this process. But sometimes the projects promise a huge reward for participation just after registration in social networks or small investment. Its very easy to recognize a fake after calculating your possible reward.
“Binance Smart Chain Ethereum Compatible Token Standard”. It is a token standard used on the Binance Smart Chain (BSC), which is a blockchain network that is interoperable with the Ethereum network. BEP20 tokens have similar features and functionality as ERC20 tokens, but are specific to the Binance Smart Chain. It is very easy to swap ERC20 to BEP20 using a cross chain bridge on different exchanges. Both ERC20 and BEP20 tokens can be created and managed using smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
How To Choose Safe Exchange / Platform
It is important to note that the specific steps and requirements may vary depending on the exchange or platform you use. Be sure to carefully read and follow all instructions provided by the platform to ensure a successful and secure swap.
Create an account on the exchange or platform if you do not already have one. Be sure to complete any required identity verification steps and enable two-factor authentication for added security.
It is very important to know about modern standards and blockchains used to.
For e.g. TRC20 standard, very popular nowadays supports only tokens belonging to as well as BEP20 etc. Follow the instructions provided to deposit your BEP20 token into the exchange or platform. This usually involves sending the token from your own wallet to a wallet provided by the exchange or platform. To know more about bridges: https://home.core.allbridge.io/swap-standard/swap-bep20-to-trc20
- If you are satisfied with the exchange rate and fees, confirm the swap and wait for the transaction to be processed.
- Once the swap is complete, the TRC20 token should be deposited into your account on the exchange or platform. You can then withdraw the TRC20 token to your own wallet, if desired.
Be careful with your investments and don’t fall for scam projects. If something sounds too good to be true, then it probably is.