Fraud has been a threat since the early days of the Internet. With the development of technology, these programs are also developing. With the increase of Internet users, these programs become more and more common. However, with the maturity of supervision, it becomes more difficult to avoid being caught and face the consequences of fraud. This trend has also derived into the cryptocurrency market, which is also the content to be discussed today: why are there so many crypto frauds? How to protect yourself?

1、 Why are there so many scams in the cryptocurrency market?

When immoral individuals or entities (fraudsters) take money from others without their knowledge or consent, a fraud occurs. The ability to connect to the Internet enables people to connect and interact creatively in an unprecedented way. However, this also allows online fraud to develop, and these interactions may be bad experiences for one party.

Like the early Internet or any other groundbreaking technology, cryptocurrency has attracted some fraudsters. Cryptocurrencies exist in decentralized blockchain technology, which means that they operate without the intervention of banks, governments and other regulators. This is similar to the early days of the Internet. Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) use proprietary algorithms and protocols to run on their own blockchains, making them fully decentralized.

Because cryptocurrency lacks central authority, there are no insurance policies or institutions that can report problems if they occur. Blockchain is a digital account book that records cryptocurrency transactions, making every transaction on the blockchain permanent and available for public viewing. However, the volatility of cryptocurrency makes it a high risk and high return digital asset, unless you choose a stable currency and other alternatives.

These scams are named to make them unique and easy to be recognized by ordinary users. If you notice the following behaviors or characteristics, you are likely to be cheated:

1. Phishing: Crypto wallet is a common target of phishing plans, and fraudsters aim at users' private keys to obtain their funds. Phishing fraud refers to a hacker who establishes a fake website or "phishing webpage" through email or hyperlink. When you input your personal information, such as your private key, the hacker's computer will record your input, and the data will eventually fall into their hands. Then hackers enter your account and steal all your funds.

2. Carpet pulling: When a developer issues a new coin or token and carries out a lot of publicity around it to attract people to buy, carpet pulling will occur. This publicity creates high traffic and allows developers to increase the price of encryption. These coins are usually part of a limited sale to increase their value. Once developers are satisfied with the amount of encryption investment and the funds they bring, they will run away with the money.

3. False gifts: carefully designed gifts, offering attractive prizes and encrypted rewards to participants. However, there is a condition attached to these gifts: you must "register" them by paying a certain amount or providing some information. These scams usually force you to share gifts with friends or post photos on social media to qualify, thereby increasing your visibility and attracting more users who do not know.

4. Job opportunities: hackers will disguise themselves as fake recruiters, post job vacancies online or send people messages to "start training" a position in their company. If you pass the selection process, these false recruiters will usually offer generous salaries and benefits. However, they may ask you to pay a small fee or provide personal information to add to the company's fake database.

2、 How to protect yourself

1. Do not share your private information, especially your private key or seed phrase, with anyone. No legal organization will ask you for such information.

2. Set up 2FA for all your accounts. In addition, please ensure that your private key is written on paper and stored securely when the machine is turned off.

3. As a decentralized ecosystem, it may be difficult to distinguish between true and false. There are thousands of cryptocurrencies and hundreds of cryptocurrency exchanges online. Therefore, it is necessary to do a good research before buying and selling cryptocurrencies.

4. Don't trust social media influencer marketing and screenshots that can be manipulated and fabricated by fraudsters.

5. Check the syntax of links and advertisements carefully.

summary

The above content is about why there are so many cryptocurrency frauds? How to protect yourself? The answer to these two questions. You should know these common encryption scams. If any entity or individual or enterprise asks you for information or money, it is likely to be a fraud. Never believe in the so-called "once in a lifetime" discount. Proposals that look too good to be true are usually false.