With inflation on the rise, you might be looking for ways to pay your rent and other bills. If you’re considering boosting your savings with crypto, be careful. According to the FTC, more than 46,000 individuals claimed to have lost over $1 billion in cryptocurrency scams since the start of 2021. The median reported loss is $2,600 per individual.
Cryptocurrency is not regulated by any government agency and investments are not protected like a savings or checking account. With so much money at stake, it’s vital to spot the signs of a crypto scam.
Here are 10 red flags that your investment may be a scam.
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1. Unrealistic claims
A common sign of a crypto scam is unrealistic claims. If a website selling crypto claims to do something that seems too good to be true, it probably is. Be wary of any offer that makes grandiose promises without being able to back them up.
For example, if an advertisement claims you may make a 10 times return on your investment in a short period, that should be a major red flag. Be skeptical of any project that claims to offer guaranteed returns, regardless of the investment amount.
Another example is a project that claims to have developed a “new and improved” blockchain technology much better than anything else. Unless the team can provide solid evidence to support their claims, you should be wary of investing.
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