Are you afraid of falling victim to a crypto scam? This informative post is focused on explaining different types of crypto fraud and scam in the world of digital currencies and what you have to watch out for in order to be safe as possible!


  • Crypto fraud types and how to avoid them!
  • Are cryptocurrencies a bad thing?
  • Is Bitcoin value going to change in the future?

Digital Currency Is A Ponzi Scheme!

Surely you’ve heard that before, right? About how  “the crypto bubble will burst”, how Bitcoin’s death is just around the corner, how scams are used by thieves with their CryptoLocker virus, and so on …

Did you know that Bitcoin has already “died” 146 times?

Because the technology of cryptocurrencies is relatively new, the web is full of scammers that prey on the gullible. It is also full of people and media who make money by fear-mongering.

Examples of crypto frauds and examples on how to avoid them:

  1. Find a trusted digital currency exchange

    • Over the years, quite a few crypto trading websites appeared and disappeared overnight with their users’ coins.
    • Find a credible crypto exchange that you can trust (Kriptomat has an EU license for trading).  You want to find an exchange, that has at least stated who stands behind it and where they are located. And of course, use smaller quantities of digital currencies for trading. You can safely store large amounts of your digital currency in your bitcoin wallet.
  2. The crypto Ponzi scheme – OneCoin ponzi scam

    • In the spring of 2017, representatives of OneCoin (with offices in Mumbai) were having sales-negotiations in a room full of potential investors. During the pitch, a group of Indian financial security executives broke into the room and rounded up 18 OneCoin representatives for managing a financial pyramid scheme. Up to this meeting, OneCoin has already moved over $350 Mio through their accounts.
    • Investors have succumbed to these frauds due to ignorance, positive media coverage, good sales tactics and so forth. A lot of people lost a lot of money because of OneCoin.
    • We hope and believe that you will be smart enough to recognize deception and act accordingly. It is important that you are really well informed about what you are spending your money on. 
  3. Pump & Dump Schemes

    • Over the years, quite a large number of well-known financial experts have expressed their opinions about cryptocurrencies. While some equate them with a safe investment — like gold or stocks — others are convinced that all cryptocurrencies are purely speculative assets that are susceptible to pump & dump schemes, where the value is artificially raised.
    • This is still the case with some ICOs. Luckily, such crypto scams are increasingly difficult to execute since the community regularly exposes them. 
  4. Crypto fraud, non-existent crypto coins, and imitators

    • In August 2017, London authorities closed down a company from the financial district that carried out cold calls to people in the area and sold them non-existent crypto coins. Real investors will not call you by phone, nor will they “forcibly” offer the possibility of investing in a crypto coin or token. You can always check the digital currencies in circulation and their current value on our website.
    • If you receive a call from anyone who sells digital currencies, or if someone contacts you online as an “official representative” of a known crypto exchange or a crypto token, it is very likely that you are being scammed. Contact the appropriate authorities immediately.
  5. CryptoLocker ransomware

    • CryptoLocker was a notorious example of a malicious software that was downloaded to your computer and encrypted its data. The data could then be retrieved (unlocked) by sending some bitcoin to the specified address.
    • Victims of this attack received emails with attachments containing the CryptoLocker virus. When activated, the virus locked certain files on the computer with the help of cryptography.
    • NEVER OPEN ATTACHMENTS FROM UNKNOWN EMAIL ADDRESSES! The scammers can be very cunning and send you an email from an address that looks normal but has a small change. Something like [email protected] would then be changed to something like [email protected] Cautiously check every email you receive. If you don’t trust it, don’t open any attachments.

Cryptocurrency Scams

Are Digital Currencies a Bad Thing?

No, far from it.

But, like any technology that involves money, cryptocurrencies attract criminals as well.

When it comes to cryptosecurity, it is extremely important to be properly informed and that you make proper research before buying.

If you are interested in how and where YOU can “start with crypto”, read these practical tips for trading digital currencies.

bitcoin value

Will the Value of Bitcoin Stabilise, Rise, Or Fall?

Nobody knows. Don’t trust anyone who claims to know the answer to this question. It is said that the potential of digital currencies is similar to the potential of the Internet in the 1990’s. The arrival of blockchain companies and new cryptocurrencies is a natural evolution and only time will tell if the technology becomes truly mainstream.

The younger generation will likely grow up with even more advanced technologies and will have little difficulty adapting to a world in which bitcoin is used as a payment tool. Paper money (cash) is already becoming a thing of the past.


The text is of informative nature and does not apply as a recommendation for an investment. It does not express the personal opinion of the author or service. Any investment or trading is risky, past returns are not a guarantee for future returns – risk only those assets that you are willing to lose.

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