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How to avoid scammers in the cryptocurrency space

By Theophilus Mwangi | April 19th 2020

The Bitcoin has inspired the release of other cryptocurrencies and digital currencies including the BnB, Eth, LTC, AE, among others.

Cryptocurrencies are complicated, especially for new users. They are lightly regulated, highly volatile and there is not enough information out there to enlighten people wishing to venture into them, hence attracting scammers who take advantage of unknowing users.

Like everywhere else, scammers will always be quick to take advantage of naivety to steal from unsuspecting newbies.

Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibilities of losing your cryptocurrency investments.

Below are different ways of identifying scammers

  • The promise of making quick money- Scammers will entice you to ‘invest’ a certain amount of money to be making a huge chunk of it every day, week or month.
  • New traders without verifications- They create new accounts and take advantage of the one trade allowed before having to verify your identification to take advantage of unsuspecting traders.
  • Paying to join a ‘mining network’- You have probably already seen people put out adverts where you are asked to contribute a certain amount to join their mining network and make amount X daily, weekly or monthly.
  • Sending you links (malware) to help them recover ‘locked assets’- Scammers often send you links and malwares that they use to try get a backdoor entry into your wallet especially if you do not have a double step verification.
  • Fake bitcoin exchanges- These are platforms that purport to be crypto exchange platforms but in real sense are not, it is always advisable to use trusted wallets and platforms


There are more cunning ways of being scammed on p2p exchange platforms which include a buyer purporting to have settled a payment and pressuring you to release the Bitcoins from the escrow lest they give you an untrustworthy review.

Others include someone convincing a naïve but interested guy to send them for example $6000 in exchange for one bitcoin and then ghosting with your money.

Doing your own research and knowing why you are venturing into cryptocurrencies goes a long way in helping you avoid being scammed. For newbies, I would advise you do your own research before venturing into crypto. Treat them as an alternative currency at the beginning and build from there.

Do you own any Bitcoin yourself? Don’t be too late to the party.

The writer is the COO at Point50capital. Twitter @Theo_mwangi

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