Hello Guys, it's collins here again and as usual we have some insightful things to talk about. We all know how important crypto is becoming, i mean someone can make thousands if not millions overnight and so everyone is very interested in it but not many understand its working process and they fall victim to the rising amount of scammers and hackers. I for one have fallen for a particular crypto scam before and trust me i wouldn't whish that on my enemies so i decided to create this article to help the newbies

1. WALLET SCAM .

This is one of the most common scam tactic you will find if you use social media like twitter.

How does it work?

People create twitter bots to search for keywords and hashtags like #crypto, #web3 etc. and then they send message like the one above to you but here comes the catch, when you do log in to with the credentials you will see the amount they stated but you can't withdraw it unless you send some USDT or some crypto coin to enable you to withraw but most of this account already have a node.js auto-withdrawal bot on them so when any amount of stated crypto enters, it is withdrawn and the amount they left cannot be withrawn.

This hack would be easily preventable if you DYOR ( DO YOUR OWN RESEARCH ) but that sounds so out of the ordinary like what kind of research should you be doing. Well it turns out that every single crypto transaction is on the blockchain( in translation, you can see every transaction made to that account

EtherScan

or

BscScan

here is an example of transactions on my address

so for scenerios like this when they say send some USDT to enable you withraw, check the wallet address they are telling you to send the crypto to and see the transactions underneath. If an amount is withrawn as soon as it enters the account then obviously it is a scam.

1. FAKE CLOUD MINING

Crypto is mined, everybody knows this and you must have heard of apps that can help you mine crypto or browsers like Brave that will give you an amount of token for using their app or browser, Although it feels like the crypto version of google adsense where they pay you for the traffic the generate but thats by the way side. Now people have this thing where you pay them to mine crypto for you, It is a term called CLOUD MINING

" According to google, Cloud mining is a mechanism to mine a cryptocurrency, such as bitcoin, using rented cloud computing power and without having to install and directly run the hardware and related software

But scammers have taken this nice initiative and made victims out of people who seem to want to take part in cloud mining, This is one of the most scary scams out there cause they do pay some people for a while and once their name starts coming out there and people are refering other and they have enough users, They would close it down. Here is what i have noticed, They only pay for a month's worth of domain name, sometimes it is two months but they don't last, an example of this fake cloud mining site that once existed is

forumltc

If you search for "forumltc" on youtube you would see influencers that were paid to talk about it and now it does work anymore. What you can do is check when a cloud mining website was created / update, when it was updated on Lookup

An example is facebook lookup. Then it is advisable to make use of the free mining for a while before actually buying hashrates for more cloud mining.

The only free cloud mining website i have used for a while now is Eravis but i have only used the free mode though.

1. SHIT COIN PUMP The shit coin pump scam is one of the most cruel scams and yes this is the only one i have fallen for. wait a minute

Yes, i fell for it and honestly speaking i was shocked when it happened but then i also was impressed with the scam because i should have seen it coming but the setup was nice.

HOW DOES SHIT COIN PUMP WORK

Lets say you are a crypto trader which means you buy loww and sell high, The hackers will invite you to their group mostly on telegram or discord where they send signals of coin that will be pumped for profits, dont worry the pump will occur, you just wont be withdrawing your profits, The hackers will create a token you can buy on a decentralized exchange(DEX) like uniswap or sushiswap but you won't be able to sell the token until it drops to zero and by then they already invested and collected both your investment and their own.

if you want to trade, it is advisable to use listed tokens on etherscan. You can find listed tokens Here or the BsC Token

and as usual always remember to triple check before you send your crypto, You dont want to be this guy