Friends, the crypto market is continuously touching heights, especially after Donald Trump became the President again in America because Donald Trump is considered a big supporter of crypto. Even in India, even if an exchange like WazirX is closed, people trade in other exchanges to get high returned.
In India, people do not get as much information about crypto through any news channel as they do through videos made on YouTube. YouTube influencers are constantly encouraging people to trade in crypto. Some people are even learning live trading.
There is a fixed time in the stock market but in crypto you can trade 24 hours anytime, that is why the crypto market is also attracting people.
In such a situation, scammers are also very active and innocent investors are falling prey to them. In today’s article we will discuss eight types of scams that crypto investors are falling victim to.
Pump and dump
Pump and Dump Crypto Fraud: In this type of fraud, first of all the price of a crypto coin is increased very much through various types of fake news on social media so that investors can invest in it and after that when the price of this coin reaches a very high level, then its price is increased.scammers sell off their holding and exit from that coin. Finally coin price are dropped and normal investors loose their money.
Fake Crypto Wallets and Apps
Nowadays, there is a flood of many types of fake crypto wallets or apps and new types of crypto apps are coming into existence which people are finding very attractive and people are getting trapped in their trap. Apart from this, many times people also download the world’s famous apps from some unknown link.
Many times fraudulent apps use the logos of genuine and good companies and use the same interface which makes it difficult for the investor to identify whether the app is real or fake, hence one should always download the app from Play Store only.
Phishing Attacks
Attempted phishing attack is a well known method of fraud, it is always done that somehow the document of the verifier is stolen, many times the verifier is sent a link by which he can reset his password and once he gets all the information of the verifier.and their crypto fund is transferred
To avoid phishing attacks, investors should not reset their passwords through unknown links. Apart from this, at present many companies are also using Two Factor Verification (2FA) for passwords.
Imposter scams
In this type of scan, first of all hackers hack a celebrity’s social media account like Twitter and then promote fake cryptocurrency through that account. Therefore, as soon as the investor invests in cryptocurrency, he withdraws his capital from this cryptocurrency.
Honeypot scam
In Honeypot scam, the scammer launches a project or token in which the investor invests money, but the scammer has designed it in such a way that the investor cannot withdraw his money.
Guaranteed profit schemes
In this type of fraud, such projects are launched which promise to give you 70 to 80 percent return every month. When the investor invests in such a project, the scammers run away with all his money.
Cyber attack in crypto exchanges
Cyber attacks have proven to be the biggest scams in crypto exchanges. Many times, due to such scams, all the investors of the exchange get affected. For example, in July 2024, India’s famous cryptocurrency exchange Wazirex got cyber attacked due to which the exchange itself had to be closed.
The hard-earned money of all the investors investing in this exchange has been lost. Apart from this, in the last week of January 2025, a cyber attack also took place in Dubai’s cryptocurrency exchange Bybit, although this exchange has managed to continue its services regularly.
It is said that to avoid such scams, one should not keep their cryptocurrency in crypto exchange because when the exchange is closed, where will the crypto investor go? For this, it is said that one should transfer his cryptocurrency to hardware and trust wallet.
Hard Wallet and Trust Wallet are both types of wallets that help in keeping your crypto coins safe.
Hard Wallet:
A hard wallet is a physical device that stores your crypto coins offline. This is a secure method that protects your coins from hackers.
For example, the Ledger Nano X and the Trezor Model T are examples of hard wallets.
Trust Wallet:
Trust Wallet is a software wallet that runs on your mobile device. This wallet allows to store and manage your crypto coins.
Conclusion
It is quite challenging for investors to become crypto investors in India. To avoid such crypto scams, investors are advised to invest only that much money in cryptocurrency which is of no use to them or they do not need the money for a long time.
Do not install any crypto app through an unknown link
When new tokens are launched, one should invest in them only after getting detailed information about them.
One should not invest under the influence of any person or celebrity. Only your own research helps in this task.