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As the cryptocurrency market expands, so does the variety and complexity of scams associated with it. It’s imperative for both new and seasoned investors to be aware of these deceptive practices to protect their investments.

We have covered 4 crypto investing scams before, so this article serves as an expanded version of it.  That said, this article outlines ten common types of crypto scams, as follow:

Crypto scams

1. Phishing Scams

Phishing scams are prevalent in the crypto world, where attackers create fake websites or communications that resemble legitimate cryptocurrency services. These sites or emails often urge users to enter their private keys or login credentials, which the scammers then use to access the victims’ wallets or exchange accounts.

The best defense is vigilance: always verify the authenticity of the website or email sender, use bookmarked URLs for exchanges, and employ strong, unique passwords along with two-factor authentication.

2. Ponzi and Pyramid Schemes

Ponzi schemes in crypto work like traditional Ponzi setups, where returns for earlier investors are paid out from the contributions of new investors, rather than from profit earned by the operation of a legitimate business. Pyramid schemes, a similar fraud, require participants to recruit others to invest in a supposed business opportunity.

The key sign to watch for is the promise of high returns with little or no risk, and a heavy emphasis on recruiting new members rather than selling a product or service.

3. Fake ICOs

Scammers create fake ICOs (Initial Coin Offerings) to exploit investors’ desire to get early access to new cryptocurrencies. These ICOs may have sophisticated websites, detailed whitepapers, and vibrant marketing campaigns, but in reality, the cryptocurrency they’re promoting doesn’t exist. It’s essential to research the background and reputation of the team behind the ICO, the viability of the project, and look for independent analysis and reviews before investing.

4. Pump and Dump Schemes

In a pump and dump scheme, a small group of investors will buy and hype up a lesser-known cryptocurrency to inflate its price artificially. Once the price is high enough, these investors sell off their shares at a profit, causing the price to plummet and leaving newer investors with devalued assets.

These schemes are often coordinated through social media or messaging apps. Investors should be wary of unsolicited investment advice and sudden price surges in relatively unknown cryptocurrencies.

5. Malware and Ransomware

Crypto-targeting malware and ransomware are designed to access private keys and steal cryptocurrencies from digital wallets or to lock important files and demand a ransom, usually in Bitcoin or another cryptocurrency.

To avoid this, it’s vital to have up-to-date antivirus and anti-malware software, be cautious about downloading software or opening email attachments from unknown sources, and regularly back up important data.

Crypto exchange

6. Fake Cryptocurrency Exchanges

Fake cryptocurrency exchanges might appear legitimate at first glance, offering features like competitive pricing and freebies. However, once a user deposits cryptocurrency, they may find that their funds are suddenly locked, or the platform vanishes altogether.

Use well-known and reputable exchanges, and research any new or unfamiliar exchange thoroughly before depositing funds.

7. Social Media Scams

Social media scams often involve impersonators of famous individuals or crypto influencers promising to multiply the cryptocurrency sent to them. These scams prey on the trust and eagerness of investors hoping for quick returns.

Remember, legitimate figures in the crypto space will never ask for cryptocurrencies in exchange for more later. Always verify the authenticity of such offers through official channels.

8. Mobile App Scams

Fake mobile apps designed to look like legitimate crypto wallets or trading apps can be especially convincing. Once downloaded, they may steal information or redirect deposits to the scammer’s wallet.

To avoid falling victim, only download apps from official and verified sources like the Apple App Store or Google Play, and check for authentic user reviews and the app’s update history.

9. Romance Scams

Romance scams in the crypto world involve fraudsters who form relationships with victims online and then exploit these connections to solicit investments in fraudulent schemes or directly steal cryptocurrencies. These scams can be particularly insidious as they exploit personal and emotional connections.

Being cautious with online relationships and never making financial commitments based on emotional appeals is crucial.

10. Cloud Mining Scams

Cloud mining scams promise participants the opportunity to rent or invest in cryptocurrency mining equipment, but often, the operation is non-existent or a Ponzi scheme. Potential investors are lured with the promise of consistent returns.

Before investing in any cloud mining operation, thorough research is essential. Check the operation’s transparency, reputation, and the feasibility of their claims.

Crypto analysis


Awareness and due diligence are key in avoiding falling victim to cryptocurrency scams. The crypto space, while offering significant opportunities, also requires cautious and informed participation.

Always research thoroughly, use secure and verified platforms, and maintain skepticism towards offers that seem too good to be true.

About The Author


Owner of Since 2013, he's been immersed in the world of cryptocurrencies and has become an avid NFT collector since 2019. Also an NFT artist, he is a lifelong learner of mixed-media artwork creation.