The Biggest Crypto Scams (And How To Avoid Them) – Part 3

Over the last week, we’ve learned a lot!

From the truth about crypto exchanges, to the value of having a separate email, to realising that Google doesn’t always have our backs. We’ve even learned how to check a URL.

And don’t forget our most important lesson of all: To never, ever share private keys.

For new investors, scams are one of the scariest things in the crypto space. But by now, you’re probably feeling confident that you can spot one a mile away. Which goes to show that, with a little knowledge, we can diffuse the fear and invest in crypto the right way, and the safe way.

So thanks for joining me on this journey through the darker side of the crypto world.

Let’s shine a light on the last few scams and learn how to avoid them.

Flashlights ready?

Here we go.

#11.  Don’t get starry eyed 

If you ever see a celebrity or well-known figure endorsing crypto, proceed with caution. This can be a tell-tale sign of what’s referred to as ‘crypto shilling’. It works like this:

A celebrity or person of influence creates buzz around a coin by endorsing it (the pretence being that they aren’t being paid to do it). The demand for the coin rises, the price pumps, the celebrity gets paid, the price tanks. 

And it never goes back up again.

In reality, if celebrities or influencers who have shown no previous interest in crypto are suddenly flying the flag (and offering zero transparency about why) they are probably being paid to lure you into a bad investment.

If you see this type of activity, look at the credentials of the person doing the endorsing. If there is very sudden interest, and a large amount of promotion going on, this should be a big red flag.

The truth is, if a crypto coin has good utility, good technology and can sustain itself, it will stand on its own merit without the endorsement of a celebrity.

#12.  Ask the tough questions 

Let’s talk about crypto educators!
(And yes, I am one).

My brother and I founded DWG in 2017 after learning all about this new technology, making smart investments and becoming financially free at under 30 years old. We began teaching family and friends our strategies and it grew organically from there. Today, we’re one of the biggest and most successful crypto advisors in Australia.

My point is, we’ve been around a long time and helped a lot of people increase their wealth. We’ve earned our stripes in the world of crypto.

Fast forward to today and we’re inundated with crypto and YouTube experts. But, unfortunately, many of them will walk you straight into scams. So if you’re approached by an expert or educator, make sure they’ve got the right expertise.

Here’s a few questions you can ask:

• Who introduced you to crypto and when did you start?
• What was the first exchange you used?
• What was your first Bitcoin purchase worth and what was the price of Bitcoin?
• What alts did you hold?
• What is your biggest gain and biggest loss?
• How many years have you been a crypto educator?
• How many students have you helped?

If they can’t answer these questions quickly and confidently, give them a wide berth.

Which brings us to our final point…

#13.  Avoid shiny object syndrome

In the world of crypto, there are many things that can distract you from your path. Trading bots, leverage trading, security token offerings, ICO’s – all of this extra noise can make you feel confused and overwhelmed.

And I’m here to tell you, it’s okay.

At DWG, we don’t really do crypto clutter. Our strategy is to work with a foundational portfolio then slowly build from there.

Because while there are many pathways in crypto, only a few are safe.

To build immense wealth for generations to come, you need to switch off the noise and become a crypto hermit. If it’s too shiny, bright or loud – best to stay away!

Shiny objects are often there to tempt us into bad investments. So stay on your path, and keep your eye on the prize – which is having the right coins in the right growth sectors and playing the long game. Ignore the shiny objections and you’ll have a much better chance of doing crypto right.

So there you have it, my top strategies for avoiding scams and protecting your crypto assets.

As you’ve no doubt realized, a lot of this comes down to common sense, not being distracted and not letting your emotions drive your investment choices.

I hope you now feel more confident recognizing scams and navigating the world of crypto safely.

Happy investing!