Common Cryptocurrency Scams and How to Avoid Them

The world has seen some unpredictable factors in recent years, whether this is COVID, wars and other circumstances that have made a recovering economy. Due to a recovering economy, it is only natural for some scammers to take full advantage of this by creating scams that make them rich and the investors poor. When one is investing in cryptocurrency, this is something that you should be very aware of as it is rife. In this article, we will go through the most common cryptocurrency scams and how to avoid them. 

Types Of Crypto Scams

Generally, there are two specific categories of cryptocurrency scams that you should be aware of:

  • Enterprises that aim to obtain details to your digital wallet or authentication details. These scams aim to get information that in turn gives them access to your digital wallet, private information and also can be physical hardware.
  • Transferring cryptocurrency directly to a scammer through impersonation, business opportunities or fraudulent activity. 

Cryptocurrency Scams To Avoid


One of the most popular and frequent scams that are used to target UK customers is called phishing. Phishing is a form of scam where you may receive an unexpected email or text that looks like it is from your bank or in the world of crypto, is usually in the imitation of your crypto wallet provider or crypto exchange. The email will include a link that sends you to a site that looks almost identical to the wallet you use, but it turns out to be a scam. 

Once you have entered your details on the replica site, you have just given your scammers everything they need to empty your account. 

How Do I Avoid Phishing Scams?

  1. Always double-check URLs, this will ensure you are visiting the genuine website and not getting scammed.
  2. Don’t click on unsolicited links from emails
  3. Never let anyone know your private key

Fake Exchanges and Wallets

Another scam that is around in 2022 is fake wallets and fake exchanges. This is essential to understand that these traders may be able to give all the information and walk the walk, but it can be a front to get consumers trading their hard-earned cash. 

Many will be in a form of an advertisement or promotional offer that usually sounds too good to be true. Other forms of this scam include pressures to create an account and deposit your funds which often include bonuses to those who invest a certain amount. Once they have you signed up, they will then increase the fees, steal your deposit, or make it extremely difficult to withdraw funds. 

How Do I Avoid Fake Exchange and Wallet Scams? 

  1. Stick with reputable and popular exchanges.
  2. Vigorously research any exchange or wallets before creating an account. Who is the team involved? Where is the company registered and do they have reliable reviews from other reputable sites. 
  3. Don’t be pressured into depositing funds or giving out any personal information.
  4. Don’t just pick a wallet from the app store, look online for the best ones.

If you have been scammed from any sort of cryptocurrency scam, there is a chance that you can recover your funds by contacting investment fraud lawyers where they can advise moving forward.