As cryptocurrencies gain mainstream acceptance, the landscape of investment opportunities continues to evolve, unfortunately accompanied by an increase in sophisticated scams. In recent years, fraudsters have become more innovative, leveraging technology and social media to deceive investors. This article explores the latest types of cryptocurrency scams, how they operate, and the measures you can take to protect yourself. 1. Ponzi Schemes What are Ponzi Schemes? Ponzi schemes are a classic form of investment fraud that has made its way into the cryptocurrency realm. Named after Charles Ponzi, these schemes promise high returns with little risk, attracting investors under false pretenses. How Do They Work? Scammers lure new investors by promising unrealistic returns on investments, which they pay out to earlier investors using the funds from newer participants. The scheme relies on a continuous influx of new investments to keep it going. As soon as new investments slow down, the ...
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