How to Detect a Scam
Pay attention to the following hallmark signs of crypto scams:
Lack of Transparency
Any broker or merchant is naturally quite proud of their brand and their accomplishments. They want to reveal the names of their team and their credentials. However, if you notice that the crypto service has no website, or if it does, no names of the people who run the operation and no contact information, you may have walked right into a crypto scam. Get away as fast as you can.
The blockchain, at least as of now, isn’t regulated. That is the appeal of cryptocurrencies, at least for some people. A lot of crypto fans love the freedom and the lack of interference by regulators. However, the dark side to this lack of regulation is the proliferation of bitcoin scams.
If you are trading cryptocurrency, do so only with a licensed exchange. Also, make sure the company you are dealing with has a license.
They Demand Sensitive Information
Asking for your crypto codes and keys is never alright. A crypto scam may also ask for unnecessary but highly sensitive information like your Social Security number.