Since I am a newbie I consider myself prone to scams before thats why knowledge and information is important in investment or promotions in cryptocurrency and in my 5 months at crypto world I never been fooled by scammers.
There are so many ways to protect yourself against these types of scams.
The first and most obvious tip is, If something is too good to be true then it probably a scam. This pertains a lot to services and platforms that offer high yielding commissions and daily interests such as BitConnect. Ponzi schemes do exist and they normally work by funding your large returns by using the lent money from other investors. If this was a real thing, wouldn’t everyone be doing it? Wouldn’t everyone become rich? Be vigilant on this especially you watch in youtube earning blog about investment.
Be alert and attentive when you’re being invited to a referral code to earn quick money. This is a very common technique that falls under multi-level marketing methods where people try to sell/refer a product to others to make money.
Lastly, its important to be aware of exchanges that are centralized and hold your private keys. An example of a crypto exchange that was shut down and liquidated its user base was Mt. Gox that lost hundreds of thousands of Bitcoins at the time.
So guys always remember that invest only the amount you afford to lose.
Have a good day everyone!
