Common Crypto Scams and How to Protect Yourself
Cryptocurrency scams have surged in recent years, with billions of dollars lost to fraudulent schemes. According to Chainalysis, crypto scammers stole over $14 billion in 2021 , a significant increase from $7.8 billion in 2020 . Common scams include phishing attacks, Ponzi schemes, rug pulls, and fake exchanges. In particular, rug pulls accounted for nearly 37% of all crypto scam revenue in 2021, highlighting the growing risk in DeFi platforms. As the crypto market expands, so does the sophistication of these scams, making it crucial for investors to stay informed, use reputable tools, and exercise caution when navigating this fast-evolving space. Cryptocurrency scams are becoming more prevalent as digital currencies grow in popularity. Here are common types of crypto scams and tips on how to avoid them: 1. Phishing Scams How it works : Scammers send fraudulent emails or messages pretending to be from a legitimate company (such as a crypto exchange or wallet provider) to steal pe...