Scam Coins – What is it? Cryptocurrencies are wildly common on the internet. Being one of the best forms of currencies along with incredible security is something which we all want.
Virtual coins have emerged from the need to simplify payments. Before that, they were not considered a safe payment method.
But frauds do happen in both of the cases. People who claim to be agents and the local worker from the banks or money laundering organizations/institutes seem to be grooming everywhere and looking for customers for their own personal gain. People do fall into their traps and that’s not at all avoidable.
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Money frauds are common and many of us have experienced it one or the other way. Selling of duplicate things, false insurance and providing assurance of lifelong insurance through just some paperwork is not uncommon.
Forget that, we have even been fooled by false physical money which looks like just real money. Exchanges are common for changes or smaller notes.
Online forms of electronic money which promise you with double returns( or those casino games which makes you first pay an amount and then you have to play to win or you lose the whole money.
And then you become angry, bet more money on it and still lose. That’s the actual game of losing your money while the third party keeps on gaining.).
Scam Coins- What Is It?
Similar things are similar and common with cryptocurrencies too. Well, to be clear, cryptocurrency is not a form of physical money with several codes and a person’s image on it just like we have on physical money.
It’s a form of electronic money which is kept in an electronic account (called wallet) which can be used for legal payments. Now, that electronic form of money is not something which can be taken out in the physical form.
It’s a form of a code, which reacts only for payments and places where real money impacts. As it is in a form of a code, it can be relatively manipulated and changed easily for one’s personal satisfaction whether for the greater good or bad.
One of the most common and old cryptocurrencies is bitcoin. The code resemble with something that can be changed and reshaped into another thing with ease.
A simple experience in higher level programming and you can do a lot of things in the virtual world which can be highly profitable and destructible too.
If we apply this idea to cryptocurrencies, then a lot of things are possible. With clever coding, you can design your own coin with utmost efficiency as technology is getting better and better. Coins can be broken down and rewritten to act as a coin of a different currency too. But let us not get there.
This article focusses on how you can identify scam coins. But first, let us understand what scam coins are. Now scam coins are filthy scam coins. No originality in them. They are just well-written code but without the touch of the originality or being genuine.
Scam coins are highly common just like false physical money without any actual identification in them. Actual money has some sort of mark which makes it genuine and is valid in a country to be used everywhere, else you might be jailed for purchase and purpose with false money.
But scam coins are worse. These are such kinds of coins which prove to be very true, but is not. Scam coins revolve around a whole lot of websites, which makes them much more common to use. You fall into the trap very easily.
They are clever to advertise it in a number of areas on the internet along with all the big advertisers (like that of Amazon, Amway if actually, they do) and there you go.
Once it becomes common, people start purchasing it with exchange for dollars (real ones, not scams, since that is transferred electronically).
And you won’t be able to use scam dollar type money in your account. So you end up paying the real one and then you go. You bought yourself some coins which are not anything, just crap.
Scam coin websites are much more lucrative and intuitive than actual cryptocurrency websites. Since the ideal motive of them is to lure away money from you, either by promising you a better and higher return or a return of the good amount of money times the amount which you have paid.
This is a normal strategy, but there are many more. One another thing which they do is a direct made up comparison between the real coins and their own coins, showing up greater profit per dollar than the real ones.
With charts showing up their coin’s rising value, increase in the number of the customers and investors, decreasing the volatility and with better user activity, they simply call you on a trap. Simple enough.
Now, how to recognize these scam coins?
Recognizing scam coins is easy enough for you. The mistakes made by the publishers or the advertisers are your initial clue to the fact that there is something wrong with the coin.
Scam Coins – How To Recognize Them?
Well, let us understand more of these strategies in clear writing.
First, look for the coin’s source very clearly.
Any cryptocurrency which will be made official to the internet and to the public will have a rich source depicting the whereabouts of the coin and its purposes.
Well, that’s one point which you should always keep in mind that a good coin will always have a rich source. Investors, creators, chief programmers and coders who have given their performance and dedication will be completely present in this source.
Also, complete details about when the coin was first started, how it was implemented to what it is today will all be present. The purpose of this kind of data it to make sure to the public and to the customers that there is no fraud activity that will be undertaken by the coin and its company.
This is for a surety that it is 100 % genuine and safe to use. People will not be fooled out on this.
Scam coins will not have this kind of source and even if they have, the data will not add up actually.
Because they know that putting up the real data might prove them to be the actual frauds (even those who have helped to create the coins and the scheme).
People might eventually find out about their whereabouts in this connection and they will be jailed easily.
And this is a vital case where and how you will easily find out whether a coin is actually a genuine coin or a fraud or a scam one.
Scam coins tend to keep their information hidden with only advertisements being the only way to make sure people get to know about the currency.
Look up for the creator of the coin.
Every coin has a creator whether single or many. A coin just doesn’t pop out from the sky (of course, it won’t, its just a piece of code which has to be written down and designed).
Every coin has a godfather (or I mean the person who has created it or implemented it in the first point). Like Bitcoin has it creator Satoshi Nakamoto who is the computer programmer that first implemented bitcoin (it is still unknowingly unclear that whether it was him or a group of individuals with the same name).
Vitalik Buterin who is also known to be the co-founder and programmer of the coin Ethereum (and also of the Bitcoin-Magazine).
These are the creators of the most famous coins which are running till now (they are pretty much old) and also are one of the best coins that are available right now.
The names are pretty much known by most of the people and they are quite common.
Both of the coins are too familiar with the majority of the people too. Letting people (as they will be the customers of the coin purchases) is providing them with enough information to mean the genuinity of the coin.
Now, this is not the case with the scam coins. As they don’t provide the full identity of the creator of the coin.
And that is two reasons. First, if they provide the identity then questions will arise for the coin. Who invented it, Why, What is the qualification of the creator, how about he is able?
Since the creator knew he would be creating a false or a scam coin for which he will be charged highly (both for the crime and also for fooling people with valuable money), he wouldn’t want his name to be public.
And that is the point which you can use to find out whether a coin is a good one or a full-time scam. Scam coins don’t have actually any detail about creators or who helped in the process. Thus, qualifying as a bad coin.
See if the coin is much popular or not.
Cryptocurrency coins are highly popular and the popularity seems to be just increasing day by day. Prior to their popularity, they are also having a value increase which is a result due to their popularity only and the increasing radius of their customers who are pleased with the service.
Crypto coins have a different level of popularity and when considered between most of the coins, only the best ones are popular. For ex: Bitcoin and Ethereum are highly popular and have 40% of the market hold when it comes to the overall purchase of the coins in cryptocurrency.
They also have a high positive word of mouth.
Scam coins, on the other hand, might be popular but with a negative word of mouth. This sounds reasonable and you do the reason due to their service which is not at all tolerable.
Also, scam coins might be too much popular or not popular, depending on the number and types of advertisements they have made all over the internet.
If you find too much of these ads without any preferred source or any whereabouts of the coin, then clearly this is a scam coin. A coin with lots of popularity but no source data or a site which explains its utilities is, of course, a scam coin since this is the way they get to the innocent customers. So be aware.
Compare it with most of the coins to get a clear sight if its genuine or scam.
Comparison always brings up something which might be of good use to you. When you compare between two coins to find out which one is the best, these give you an insight of either how good is the good coin or just how useless the bad coin is.
But these sometimes will help you to figure out a scam coin which might have too much of the goods, but never any of the bad things. Why not bad things? Let us see.
Scam coins are designed or advertised in such a way so that you immediately get lured to them. They will not have any disadvantage since that might make the customers do to search for another coin.
This is not what they will ever want. They will try to make their coin show as the best coin in the world without any shortcomings, but with a lot of incoming money or a lot of returns which you have not even thought of.
Also will promise you with more than 4-5 times the total of the sum to be returned in your account of the amount which you have just invested (or you will be investing).
They will also show you interest and discounts (which are not at all true) and promise you with all sorts of things which won’t happen again.
After you have fallen to their trap, they will allow you to use your personal mail account to log in and fill out a form and do a payment.
After all the verification processes and the payments have been done, you close down. The next time when you will be going to log in, you will be prompted out of the website in your own account, showing that you never existed, please create a new account for purchasing coins.
You might be devastated but you have lost it. You have lost your money.
Scam coins are just like this. They will show you a comparison chart for making you greedy about the return money, assure you that their coin is the best in the world (better than bitcoin and other useful coins which is pure crap).
They will also give you discounts on your coin on your first buy. If you think you are seeing all these on a specific cryptocurrency coin site, then this is a sign that the coin is a scam.
See for the mining data
Mining is what creates the coin. If bitcoin is considered then mining both creates the coin and also of the blocks (in the blockchain) which keeps all the transaction data in one place.
Not exactly in one place, but a same copy of the blocks (and too of the whole blockchain) is kept in different nodes that are currently working for the blockchain.
Specific coins don’t provide or even public out their mining schemes to the real public since the involvement of the public in the mining process might be problematic.
Like some might not be able to do it properly, some might get computer problems and all of the mining data might be compromised(which is of a bigger threat). Although they do public out their technique of mining.
But some cryptocurrencies do this in order to make their range and connectivity bigger which in turn might lure in more of the customers which will lead to the profit of the company, to the coin and to its value too.
This is more of a better and future proof business strategy. Most of the open source cryptocurrency does this till now.
Scam coins don’t have anything like this. Nor a mining data involvement or any data nor any sort of this thing that can be recited to the public.
Since this might cause their system to be leaked out to the public which might reveal their actual intentions of the fraud.
So, when you don’t see any mining data or any such thing which reveals the technique of how the particular coin is mined and will be mined, don’t go further into the process of buying such a coin.
This is a clear condition of a scam coin. Some scam coins have their usual mining strategies but they are only just by name. You can identify such a coin by searching for the mining technique. If you don’t find anything, that’s a scam coin.
Look out for click and earn schemes.
Several advertisements and video ads show up to you on the internet. Some come with offers like “click here and become one of the millions of miners who are mining a great coin with lots of returns” or like “we will use some of the processing power from your computer for our mining purposes, please join if you like”.
These are the indications of clear scams. Most of these will tell you to join their group and you will get a free coin in reward. And more will come in your way.
These are simple and 100% of a clear sign that it is nothing more than a scam coin. No cryptocurrency coin in this world will ever offer you a free coin unless you have paid for it. In money.
And there are no actual coin companies that will take your Computer’s processor’s processing power for mining their own coin. Since this is nothing more than a foolish concept of pipelining which will never work. At all.
The miners in a cryptocurrency network will have at least 20 times the power of your best PC, thus utilizing a 0.001 % of power from your PC to the total needed for mining is not gonna help them.
As mining is a very fast job for the miners. In a very small amount of time, they have to complete it and the reward will go these miners, not you. So utilizing 1000 of computers and their processing power for mining a coin, which will only be a success for 2-3 times out of 100. And the reward will go to whom?
These are all nothing but just scam coins and their currencies. Now you do know how to spot down a scam coin.
But, if you search for a genuine website from where you can buy bitcoin our recommendation is Coincredit.
If you liked this article, please subscribe to our website to receive new articles about scam coins and how to recognize them. Also check our latest posts where we have exposed some dangerous scams around like Ethereum Code Scam.