If you’re thinking of investing in cryptocurrency, it’s important to understand how to avoid getting ripped off. Most crypto scams are recycled versions of classic con artists. They promise money, but in reality, the reward is a digital token. These schemes are easy to spot because they often require authentication information, such as social security numbers or credit card numbers. In addition, the scammers typically demand cryptocurrency in lieu of the rewards. Don’t fall for these “too good to be true” schemes.

A common cryptocurrency scam involves a digital wallet. The scammer will ask for a credit card number and/or the victim’s crypto wallet credentials in exchange for a percentage of the profits. As the victim, you’ll lose the crypto and the money charged to your card. Sometimes, these scammers will even “load” your wallet with cryptocurrency that they will never see. However, you should never be fooled by a scammer claiming to be Coinbase or social security.

A digital wallet scam involves obtaining your digital wallet credentials. Usually, the scammer will try to get access to your password or digital wallet. Some scams use physical hardware to get access to your private information. If you’re the victim of such a scam, you may end up losing your crypto as well as your credit card charges. Another popular crypto investment scam involves imposters pretending to be a company or government organization. Some victims have even paid money to these imposters, believing that they’re paying social security or Coinbase.