• May 31, 2022
  • Actio
  • 0

Nowadays, we cannot walk outside of our house without acknowledging the rising popularity of cryptocurrencies. But it is always better to stay cautious, as in a booming market, there are always some people who would come to take advantage of your vulnerability, or persuade you into shady investments that eventually will blow all your wallet away. This is especially relevant in Thailand where not many official institutions here have officially recognized cryptocurrencies yet. If you didn’t know better about investing, you could fall victim to these following scams. 

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1.DeFi Rug Pull

The first scam visits you in the form of ‘DeFi coins’. The principle here is that the scammers will persuade you to put your money into their investment pool in a DEX (Decentralized Cryptocurrency Exchange), while claiming to pay back (unreasonably) high returns; only if you staked some coins with them. That’s when they flee away with all your money. If you are really unlucky, they might even have created a Smart Contact and access your Crypto Wallet to plunder all your assets away. 

2. Creating malwares to hack and steal your crypto coins

You could get these malwares from, for example, when you randomly redeem free coins online. What happens is the scammers trick you into clicking something on their site, or an arbitrary link which may initially seem harmless, but actually malwares is released to hack into your crypto wallet. And you guessed it, all your assets would be taken away by the time you realize you’d been tricked.

3. Investing in a new trading platform or new trading technology 

Another type of scam many amateurs have fallen for is investing in newly launched, usually untrusted, trading platforms. They may have persuaded you with cheaper fees or no fees at all, sometimes also by advertising features which can help you profit more with automation, for example, Bot Trading. Who wouldn’t want easy money anyway? But as soon as you put your funds in, you will realize you are never getting those back again. 

4. Pump and Dump 

‘Pump and Dump’ is a well known investment trick scammers use to profit profusely at the expense of their vulnerable prey. In doing this, they would first buy large amounts of new coins or Altcoin (alternative coin) with usually low liquidity and volumes, causing its price to rise dramatically which lures the crowd to join in; of course, before selling all the coins at a really high price. With low liquidity, other small investors would inevitably get stuck on a steep hill as they struggle to get out of that deal—usually by selling it at a big loss! Many beginner traders and amateurs are the ones most prone to this investment scam. 

5.The NFT Scams 

NFT (Non-fungible Token) is online tokens that are created for a unique exchange between satisfied and willing parties of buyers and sellers. Mostly, NFTs take the form of arts with which their value is substantiated. So, the scammers usually come up with many ways to plunder you through the NFT, for example, by having you involuntarily interact with a Smart Contract so they get access to your crypto wallet, or even by selling you ridiculously overpriced NFT. 

In the online exchanges of cryptocurrencies, it is helpful to be knowledgeable of what you are doing, and not to be too fixated on the lust for prizes. If you find a way to be at peace with what you have right now, while having a solid and reasonable plan on how to grow further, then a lot of these scamming risks could be mitigated for you. 

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