Crypto Investment scams have existed pretty much even before the birth of the internet and the world wide web.
Investment scams and Ponzi schemes mostly have well-designed websites that claim to give you a 10% profit daily from your initial deposit or something along those lines.
They ask you to deposit a certain amount of money or crypto, and promise a certain amount in return daily, weekly, or monthly. Some investment scams allow you to withdraw your profit for a while, in the hopes of you depositing more money, then they simply lock up your account after a while. Losing your access to your funds.
Common types of Investment and ponzi schemes :
- Fraudulent Trading Bots
The victim is asked to “invest” in a trading bot, claiming that the trading bot can make the victim a certain amount of money in a certain time span. Usually something enticing but unrealistic like 50% in 3 days or something similar.
- Cloud Mining Scams
Similar to fraudulent trading bots, the victim is asked to deposit a certain amount of money for “cloud mining”, again, mostly with unrealistic promises of profit.
- Bitcoin & Cryptocurrency Investment Scams
Again similar to the previous two, whereas the scammer asks for a certain deposit, with unrealistic promises of profit. This scam is mostly used for people who have little to no idea and are totally clueless on what Bitcoin and cryptocurrencies are, and how they actually work.
How the scam works:
-You see an advertisement on Google and or social media about a trading bot, investment site, or cloud mining site, whereas the website claims that they can multiply your money in a short timespan.
-You create an account, and deposit some money.
-The scam website will then try to get more money off you by convincing you to deposit more money.
-The scammer runs away with your money.
How to protect yourself
-Don’t be delusional. If something’s too good to be true, it probably is.
-If you want to invest in bitcoin or other cryptocurrencies, simply buy them off reputable exchanges.
-If you want to mine bitcoin and cryptocurrencies, buy the mining hardware yourself.
Some famous crypto-related ponzi scams in the past :