How can you lose all the money you have invested in cryptocurrency

  1. Seed Phrase Stealing. The first type of scam, which is designed mainly for beginners, is entering your seed phrase on any site. When you create a cryptocurrency wallet, a key is generated for you, a phrase of 12 or 24 words, which is both a login and a password to your wallet.As a result, you get two keys: one is public, which is your address in the crypt, you share it in order to receive cryptocurrency to your wallet. Well, the second one is a private key, it just cannot be shown, told or screenshotted to anyone, therefore it is best to rewrite this seed phrase on paper and hide it in a good place, since it will be impossible to change this phrase. So, scammers often use this, for example, some site asks you to register: name, mail, private key to register your wallet in some project. But in no case, do not enter your seed phrase or, in other words, your private key, anywhere, since this is a direct path to hacking your wallet and losing all the cryptocurrency that was stored there. Therefore, as soon as you send your seed phrase or private key, hackers will immediately get access to your balance and take your cryptocurrency for themselves. This applies to various winnings, lotteries, etc., so if someone asks you for a private key, you can safely add this person to the blacklist.
  2. Phishing. The next type of scam is phishing. It is vividly represented by the substitution of the domain address, when you get to it, you think that you are on the official page of the project or exchange, but in fact, as soon as you fill in the login details, hackers intercept them and hack into your real account that you wanted to go to. I saw a vivid example of this in the summer of 2021, when hackers registered a domain with a difference of one character, one of the very famous Coinlist platform. Therefore, you need to be very careful not to fall into the hands of hackers who will take all your cryptocurrency in a short period of time. Therefore, when you find a new project in which you want to invest or want to mint NFT from the collection or upload your NFT to the site, you need to be very careful when making each transaction and look closely at the site where you plan to do the thing you need. As you already understood, some scammers make a complete copy of a certain crypto project or cryptocurrency exchange, so it will be quite difficult to distinguish the original from the fake, since there will be original information there, but it will differ in two things: a fake domain and a fake smart contract. If everything is clear about the domain, but according to the smart contract, everything is much more complicated from the technical implementation side, but in the end, if you link your wallet to such a fake service, your money will go into the hands of the hacker by 99%, who invented and implemented it all. Therefore, be vigilant and it is better to check once again that you are performing actions on the official platform than to do it faster but lose all your savings in the crypt. The safest option is to switch to the resources you need, exchanges, exchangers from a trust source called Coinmarketcap.
  3. Deception on trust. The next type of deception is similar to the previous one, with the help of social engineering, they “rub” you into trust, under the guise of a project administration, some kind of crypto blogger or creator of a well-known NFT collection. Further, hackers offer you to invest in an already well-known project under very attractive conditions, they can even tell you that you have won a lucky ticket, in general, their task is to get your funds in crypto, at any cost. They can even tell that they invest your money at 1000%, but you never trust this message, but turn on your cold brain and logic. There is a lot of money in the crypto market and you can make good money there, but there is no point in transferring your savings to incomprehensible people for any interest. Now there is lending secured by crypto, so you can borrow money, scroll it according to your scheme and repay the debt. Why would someone ask you for $100–200 if he knows how to make 1000%? There is no logic in this, because everyone who has such a scheme is ready to sell a car, an apartment, a summer cottage, a garage, or a thing of value to him in order to invest in his idea and, as a result, make good money on it.
  4. Become a member of the financial pyramid. For two years in a row, the main amount of funds lost by cryptocurrency users falls on financial pyramids. In 2020, the Wotoken scheme is leading the way, having raised over $1 billion from over 715,000 investors. In the general list of cryptopyramids, OneCoin occupies the first line, according to various estimates, fraudsters stole from $4 billion to $15 billion. All such schemes are similar. The user is offered to earn by attracting other investors and is promised high profits if he deposits funds. All the profits that early investors receive are formed at the expense of late investors. As a rule, the organizers take the main part of the funds for themselves, the rest of the participants are left with nothing.

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