5 Warning signs you are about to scam in Cryptocurrency

There is no doubt that the world of cryptocurrencies is growing rapidly. And it's no wonder scammers seize this endless opportunity like a missile seeking heat. Even Bitcoin, one of the most famous cryptocurrencies, is no exception to this threat.

However, keep in mind that the cryptocurrency market is growing so rapidly that fraudsters are more sophisticated and before investing in any of them, find the following unconventional danger signal that cryptocurrencies are fraudulent.

• THERE IS NO LOCAL EXCHANGE OF CRYPTOCURRENCY, ONLY INTERNAL EXCHANGE

There is no local exchange of cryptocurrency, only internal exchange. There is no real cryptocurrency that cannot be exchanged for local or fiat currency.

For example, cryptocurrencies such as Bitcoin and Ethereum have local exchanges where they can be converted into fiat currency.

Unlike most scams, cryptocurrencies are designed in such a way that they are only exchanged internally - that 'community' is usually in its community as a Ponzi scheme.

Note: A real cryptocurrency is not traded internally, but can be converted to traditional currency through local exchanges such as Poloniex, Bitrax, etc.

• CRYPTOCURRENCY ALWAYS RESPECT ALERTS

This is another strategic way to reach your pocket. Whenever you see a mere coin, you have a scam coin. How can you be sure?

One of the characteristics of currencies (digital or fiat) is volatility; There have been cases where it has gone up and down in value due to "market factors."

Scammers understand human psychology, our love of profit. Therefore, they have developed a series of coins that only appreciate in value every day, making sure that many people fall for them.

However, the original coin does not behave this way, but the market forces (supply and demand) determine when and for how long it appreciates or depreciates.

• WHEN CRYPTOCURRENCY PROMISE HUGE AND CONSISTENT PROFITS.

Promising meaningful and consistent profits is not only a concealment technique to get people to invest more, but also that people want to help you rather than ask for your money. It's also a surefire way to convince people.

In fact, most of these "coins" will arrive at your doorstep via unwanted means such as mail and social media. If you come across such a "coin", keep in mind that it is a fraudulent coin.

Note: In general, no investment gives consistently large returns without any risky risk.

• THE CRYPTOCURRENCY DOES NOT MEET THE BASIC CHARACTERISTICS

If the coin does not comply with the following;

• Unlimited use

• Controlled supply

• Public disclosed source code for anyone to verify

• Decentralized

This means that such "coins" can be fraudulent. In fact, most fraudulent coins are closed source. That is, it denies access to the source code. Therefore, it is highly recommended that you do not tamper with coins that do not meet the above characteristics, just in case.

• THEY RELY HEAVILY ON COMMISSIONS AND REFERRALS

One of the main ways to make a profit from cryptocurrency is through quotes or commissions, and there is a high probability that that coin is a scam or a Ponzi coin

This means that the 'currency' has no worth of its own (there is no market demand) and it is not a good sign if you are investing. If you come into contact with such a coin, run away: the coin or the company can collapse at any moment.

In recent years, thousands of new cryptocurrencies have entered the coin market. This is a stronger reason why you should do your homework before you can invest in any of them.

Points to Recover: Just because a coin is listed on the coin market does not guarantee that it is free from fraud.