Nerd For Tech
Published in

Nerd For Tech

How to keep yourself safe from Crypto mining scams in 2022?

Scams using Cryptocurrency trading are on the rise, which is unsurprising. Cryptocurrency is viewed as a currency that is impervious to inflation and provides investors with large profits. Because Crypto tokens and NFTs are digital assets with all transactions taking place online, they are a tempting target for cybercriminals because they are difficult to track digitally.

According to a new Chainalysis analysis, the value of cryptocurrencies held in unlawful wallet addresses globally increased by 79 percent last year, from $7.8 billion in 2020 to $14 billion last year. Crypto is thought to bring high rewards. While this may be true, there is a lack of understanding about digital currency and how to invest for high returns, making it simpler for scammers to defraud individuals.

People are being persuaded into investing in cryptocurrencies with the promise of double profits, according to the majority of recent crypto scams. For many, though, this has turned out to be a nightmare. Several customers were unsure whether the website they were investing in was legitimate. This was clear in one of Chainalysis’ investigations, which stated that in 2021, bogus crypto websites had 9.6 million Indian users.

Read More- how to learn blockchain

Types of Scams

Mining Scams

Cloud mining enables normal investors to mine cryptocurrency without having to purchase expensive infrastructure. When you consider that you can mine cryptocurrencies like Bitcoin from the comfort of your own home without having to invest in exorbitantly cost hardware, it may be quite profitable.

False ones can be identified by their high promises. They offer fantastic returns on your money while failing to explain the hidden fee that will be applied to these profits.

Pump and Dump schemes

It’s not uncommon for scammers to purchase a new altcoin in bulk. This temporarily raises the cryptocurrency’s market price and causes FOMO (fear of missing out) among other investors.

Scammers sell their shares of coins for a greater price as soon as new investors start investing in the new coin and the prices rise.

Malware

Before and during their investment, new investors don’t always comprehend the ins and outs of cryptocurrencies. As a result, various malware programs have had the opportunity to grow. People are now facing fresh and more serious hazards from malware programs.

Modern software designed to target cryptocurrency users and investors can gain access to the user’s online wallet balance, deplete the account, and replace the user’s legitimate address with the scammer’s.

Read More- Blockchain engineer

What you can do to avoid being a victim

Incredulity is the most effective tool against fraud. Regrettably, we live in an age where not everything we read on the internet is accurate. And a lot of it is specifically designed to deceive and injure us. To avoid being conned, keep the following tips in mind:

  • Never give out your personal information to a company that contacts you via email, text, or social media without your permission. It could even look to be a friend, but it could be a hacker who has taken control of their email or social media account. Check with them independently using a different form of communication.
  • When something appears to be too good to be true, it almost always is. Any investment plan should be viewed with skepticism.
  • Turn on two-factor authentication for all of your cryptocurrency accounts.
  • Any investment ‘offer’ that requires an upfront payment should be dismissed.
  • Never download apps from unofficial app shops.
  • Install anti-malware software on your PC and mobile devices from a trusted source.

Wrapping up

Cryptocurrency certification is on the rise with growing demands for Cryptocurrency financial advisors. Enroll in a Cryptocurrency trading course and get started.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Smita Verma

Smita Verma

Blockchain enthusiast and cover everything that goes on in the crypto ecosystem. I love researching and producing technical content on blockchain.