How to Avoid crypotocurrency scamswith explosion of crypotocurrency trading and profits , it has become an eye candy of many scammers and cheaters,What makes cryptocurrency so alluring to scammers? Not many people know how it works : this encourages cheaters to make false claims and facts to lure you into investing with them no tracking system unlike other forms of movable asset investements , bitcoin and other cryptocurrency leave no trail behind for you to track them , once stolen.Lack of regulations none of goverments or any regulatory agencies give assurance for the investment in cryptocurrency , hence scammers are beyond laws reach for any illegal activities . don’t let any of these risks scare you from investing in future technologies that will change the financial world in the coming decades . Things to look out forThere are some common scams to watch out for. Most of them are recycled versions of old internet lottery scams, but there are also a few new risks to watch out for.· everyday lottery scams · Virus and malware downloads· Ponzi schemes· Fake and imitation wallets and exchanges Let’s review each of them, everyday lottery scam The classic Nigerian prince scam you get an email to say that he just came into a fortune in bitcoin and wants to share it you , he doesnt owe you anything, don’t fall for this . Australian Tax Office, threatens you with legal action unless you sent them some bitcoin , unless you are evading some taxes from australia , don’t fall far it ,even then , australian government doesnt deal with bitcoins . don’t fall for these kind ofLet’s review each of them, everyday lottery scam The classic Nigerian prince scam you get an email to say that he just came into a fortune in bitcoin and wants to share it you , he doesnt owe you anything, don’t fall for this . Australian Tax Office, threatens you with legal action unless you sent them some bitcoin , unless you are evading some taxes from australia , don’t fall far it ,even then , australian government doesnt deal with bitcoins . don’t fall for these kind of scams , bloey or bitcoin anywhere unless you know exactly whom and why you are sending them . Malware downloadsThe Internet age brought a lot of viruses, malware and other kinds of evil into the world.Unfortunately, entire digital nature of anonymity of cryptocurrency means cheaters can now make money a lot easier alluring click-baits.As always, you shouldn’t click on unknown email attachments or potentially dangerous links.You should also be very careful of bitcoin being used as bait. For example, never trust any posts on social media where someone says you can mine bitcoin just by downloading a program, or a link to a supposed bitcoin exchange that offers freebies to get you started, they should always be treated with suspicion.There are plenty of safe, legitimate and secure cryptocurrency scams , block all spams in your mail with spam filters. Don’t send money or bitcoin anywhere unless you know exactly whom and why you are sending them . Malware downloadsThe Internet age brought a lot of viruses, malware and other kinds of evil into the world.Unfortunately, entire digital nature of anonymity of cryptocurrency means cheaters can now make money a lot easier alluring click-baits.As always, you shouldn’t click on unknown email attachments or potentially dangerous links.You should also be very careful of bitcoin being used as bait. For example, never trust any posts on social media where someone says you can mine bitcoin just by downloading a program, or a link to a supposed bitcoin exchange that offers freebies to get you started, they should always be treated with suspicion.There are plenty of safe, legitimate and secure cryptocurrency exchanges, but you probably won’t get to them by following strange looking links.Instead, do your own research. Do your homework with Google or sites you know you can trust .never trust the ones that come to you. Keep your computer/laptop/smartphone operating systems up to date , updates provide the protection against any vulnerabilities the systems will potentially have keeping old software make you an attraction for scammers Two ways to help ensure your security, even if you do get malware, are:· Use two-factor authentication every time.· Use a “cold” offline wallet. · A “hot” wallet is connected online all the time while a “cold” wallet is one that’s held offline. Having multiple physical cold wallets in separate locations is considered best practice. This is often how exchanges, business investors and other people secure the most valuable wallets.These easy security measures, plus some common sense protect you from malware even if you’renot tech savvy. To steal from people, malware usually needs to be subtle and look authentic. For example, here is the “Cryptoshuffler” trojan.THE CRYPTOSHUFFLERAccording to Kaspersky , this trojan has been around since 2016. It infects computers and then sits almost invisibly in the background until the time is right The right time is when the user copy-pastes a string of characters and digits that looks like a cryptocurrency wallet address. When they do, it simply replaces that address with the Cryptoshuffler’s own wallet address.Unless the user spots the difference in address, they’ll end up sending coins to the Cryptoshuffler wallet rather than the intended one.At the time of writing at the beginning of November 2017, about 23 bitcoin (over US$180,000) in total has been reported sent to the Cryptoshuffler wallet address.Hence keep your systems up to date with latest original anti virus softewares Fake Initial Coin Offerings (ICOs), Ponzi schemes and other scams:Fake ICOsFake ICOs invite investors to get in on a newly created coin that’s going be the next big investement. These can be hard because sometimes the creators themselves might not even know that they’re promoting scams.You need to decide for yourself whether a new coin has the potential to become big, and whether the developers know what they’re doing. Unless you don’t have the knowledge to make a judgment, you should probably avoid all ICOs. How bitcoin Ponzi schemes workScammers offers an investment scheme that promises an incredible return on investment on bitcoin. A lot of people invest in it, and then scammer runs off with all their money.At first it might look as though it actually works. The numbers in your account might be increasing as promised. But when you actually try to get the money back, you might find that the “customer service” isn’t responsive, or that there are technical issues or a number of other excuses. Then one day the company simply disappears and the money will be forever lost.Ponzi schemes can be very notorious in the world of cryptocurrency. Most people know very little about cryptocurrencies, other than that it’s making everyone invested millionaires. This makes selling big promises easier than ever. BITPETITE BITCOIN PONZI SCHEMeBitPetite was said to be a bitcoin tumbling service. Tumbling is a real service that mixes up coins to hide their origins, much like a kind of blockchain money laundering operation, but BitPetite wasn’t a tumbler.They promised an incredible 4% daily return on investment, explaining that it needed a flow of fresh bitcoin, and in turn gave 4% of the commission that was charged for. Like most Ponzis schemes, there was an explanation of how everything worked, and that was the feeling.scammers even organized social media and advertising campaigns to attract new users, and even seemed to offer breakdown services and provide a variety of professional-looking investment packages. Finally, it was like the Ponzi textbook, and the flow of new “investors” slowed down. It was a sign of money and running. So one day he announced some routine maintenance breaks and never returned to the Internet anymore. Everyone who invested at that time lost their money.How to avoid falling for a cryptocurrency Ponzi scheme· Beware of too good to be true offers. Think about whether the promised returns are really acheivable, . If it seems too good to be true, it probably is.· Do your homework. Igoogle every key word mention , use the power of social media .When in doubt, don’t invest anything you can’t afford to lose.· Check for the signs of legitimacy. Check whether the company is a registered corporation, and whether you can identify the owners. Scammers tend to be very secretive , they wont put much about themselves out in the net .· Pyramid schemesPyramid schemes are popular because they work. Even before cryptocurrency they could still take in millions of dollars for the operators, at the expense of everyone else who gets sucked in.And there are still plenty of pyramid schemes out in the world, operating in a legal grey area under the cover of legitimate businesses.Fake and imitation wallets and exchangesThe number one way to avoid the fakers might be to stay on the popular path, and use only the biggest and best-known services.Better known services are generally safer, but they’re also more likely to attract imitators. These imitations try to trick people into logging on, at which point they’ll take the account details and use that to try accessing your real account.This used to be a fairly common online banking scam. People would receive an email claiming to be from their bank, inviting them to follow an included link. But the link would instead take them to an imitation site. At a glance it would look like the real bank website, but if an unsuspecting customer logged in the scammer would get their real online banking username and password.The same scam can now be found in the world of cryptocurrencies.Whether you’re looking at a wallet or a bitcoin exchange, the safest practice might be to:o Avoid the new. Let the early-adopters take the risks, and don’t get involved until you can be sure it’s real.o Use the most popular more users means more security know what to expect. Once you know what to expect from an exchange or a service, you can more easily spot problems and imitators.o Always use two-factor authentication. This usually involves having a unique code sent to your phone whenever you need to login. It can be a hassle, but offers significantly increased protection.o Check the URL before you sign in. If nothing else, get in the habit of scanning the URL bar to look for the HTTPS and “secure” lock symbol, and checking that the URL is correct.Take poloniex scam for example : THE FAKE POLONIEX APPPoloniex is a large, prominent and legitimate crypto exchange. On one hand this makes it safer. On the other hand, this also makes it more of a target. One day some Poloniex users discovered that people were sharing links to the Poloniex mobile app.The only problem was that Poloniex didn’t have a mobile app. By logging into the imitation app, Poloniex users handed scammers their account details.Those who used two-factor authentication as a matter of course might have been fine, but those who didn’t would have lost everything in their accounts.????