Digital assets and cryptocurrency investments are currently the biggest threats for investors in 2022. According to the report, fraud promissory notes, social media scams, and individual retirement account frauds are reported as the top threats to the soundness of investor portfolios. Yet another report revealed that 2021 witnessed a record $14 billion in cryptocurrency being lost to scammers.
Thanks to the growth in scams and theft, crypto-related crimes inflated 79% in 2021 from the year before. The boost in scams and theft is blamed on the popularity of DeFi. It’s being said that the same decentralization that makes DeFi dynamic and presents exciting opportunities to investors also makes it more prone to theft and scams.
Fortunately, there are ways to prevent yourself from crypto scams, like signing up on a reliable cryptocurrency exchange. OKX is a reputed crypto exchange featured in the top 5 of the 100 largest crypto exchanges by the 24-hour volume list of Statista. By choosing the right crypto exchange with stringent security protocols in place, investors can reduce the chances of getting scammed to a large extent.
However, it always pays to know what kind of scams exist, so you are better equipped to spot the signs of a scam and avoid it. Here are the most common crypto scams that every investor should know before buying cryptocurrency.
Pump-And-Dump Schemes
Pump and Dump schemes are the most common form of a cryptocurrency scam, which means…
