8 Warning Signs of Cryptocurrency Exchange Scams

Cryptocurrency trading technology provides a way to buy and trade digital currencies. This is mainly done online through crypto wallets in mobile apps and crypto websites.

Scams targeting specific cryptocurrencies have risen and fallen as the popularity of digital currencies has grown. After the launch of Bitcoin in 2017-2018, several tailored scams emerged. Crypto scams mainly target your crypto wallets, as you will see in the common scams listed later in this article.

Today, Bitcoin and Ethereum are two of the most popular and sought after currencies due to their high value.

Warning Signs of Fake Crypto Exchanges
When you see any of the following signs, there is a good chance that you have been targeted by crypto scammers/hackers:

Unsolicited offers to buy and trade cryptocurrencies via phone calls, text messages, or emails. These are often constant and excessive to the point of being spammy.

Celebrity Endorsements: Do not trust celebrity endorsements of cryptocurrencies on social media. Scammers fake celebrity accounts on social media and then use them to attract followers and tweet about specific cryptocurrencies to drum up support.

High registration and withdrawal fees: Whenever you want to buy any cryptocurrency, always do your due diligence to check the fees for registration, trading, or withdrawing cryptocurrencies. Higher fees compared to the market average are always a bad sign.

Promises of high returns: This is the most common trick used by scammers to attract investors. High returns can attract greedy people who want to make a quick buck. Don''''t be fooled.

Guarantees and guarantees: Any cryptocurrency that claims guaranteed returns is most ly a scam. There are no guaranteed returns in the world of cryptocurrency trading; there are only risks and guaranteed principal.

New fees, undisclosed fees, and fake taxes: These are imposed on investors who request to withdraw digital currencies. Unfortunately, when you are imposed with these fees, you have already fallen for the scam.

Subtle suggestions and incentives to make larger cryptocurrency investments: If your cryptocurrency dealer is always trying to convince you to invest more and more money in your next investment, you may have fallen for a scam.

Recruiting new investors: As a cryptocurrency trader, it is not your job to recruit other cryptocurrency investors. Offering bonuses or rewards in exchange for more cryptocurrency in exchange for referring others is a scam tactic used by Ponzi schemes (link) and multi-level marketing scams (link).
Common Cryptocurrency Exchange Scams
These exchange scams mainly target digital crypto wallets.

Crypto Wallet Hackers
Any request for your wallet PIN or password should be considered a fraud. Once the scammer/hacker has control of your wallet, they will steal your money and transfer it to their own secure wallet. Never give your secure login information to anyone.

Wallet hacks work through infected apps from the Apple App store or Google Play Store. These apps collect your security details and forward them to the scammers. Online wallet hacks use credentials from phishing sites that mimic legitimate cryptocurrency exchange sites.

There are hundreds of thousands of such sites online, and the number is growing. Avoid clicking on links to cryptocurrency exchange sites in online ads, emails, or social media. Most links will just lead you to phishing sites.

Tip: Only download and use verified crypto wallet apps.

Social Media Scams
Scammers have been known to use fake celebrity accounts to post false information about certain cryptocurrencies on Twitter to a stir online. They impersonate well-known figures in the tech industry, such as Elon Musk, Bill Gates, and even Warren Buffett. The goal is to artificially inflate the value of a token. The same strategy is also seen in cryptocurrency pump and dump scams.

Scammers used Apple co-founder Steve Wozniak to give away free Bitcoin in a YouTube video. The video promised that any Bitcoin amount deposited to a given blockchain address would double. But it was a scam because people who deposited simply lost their coins.

Tip: Don''''t engage in social media crypto manipulation via "celebrity" accounts.

Crypto Exchange Customer Support
Scammers will impersonate customer service and then provide instructions to unsuspecting customers. The instructions include granting access to crypto wallets, which the scammers will then take over to transfer the coins to their own wallets.

Tip: Don''''t share your login details even with customer support.

Denial of Crypto Withdrawals
A very common scam is to deny withdrawals of your own cryptocurrencies, just a bank denies you access to cash in your account. These scammers ask you to deposit more funds into your account before you can withdraw the funds you already have.

Tip: Do not deposit enough coins into your wallet to withdraw. Otherwise, you may still be denied access or, even worse, lose all your money.

How to Protect Yourself from Crypto Exchange Scams
Here are some precautions you can take:

Use a reputable cryptocurrency exchange wallet. Choose vetted cryptocurrencies that have been on the market for a while without any major criticism. Cryptocurrencies are usually irrecoverable once lost, so do your best to protect your cryptocurrencies.

Thoroughly evaluate a new cryptocurrency wallet before entering your details and adding coins to it. Check out the company, their technology, available reviews, and how they handle questions about their products.

Never click on links in emails and social media ads that direct you to crypto websites to sign up or download apps. This is a common way malware enters your device. Instead, use your browser to navigate to these pages in a new window or tab. This way, no association is established with your social media account or email.