#CariKataKripto day 04

On the fourth day of this crypto word search event organized by Binance Indonesia, I managed to find 3 words or terms used in the context of fraud or similar activities such as Scam, Phishing, and Rugpull. Below, I will explain the meaning of each of these terms.

SCAM:

In the context of trading, "scam" refers to fraudulent practices carried out by irresponsible parties to gain financial profit or data from victims through illegal means. This fraud can involve various methods, such as promises of unrealistic profits, bogus investments, or scams that exploit the lack of knowledge or unawareness of investors.

PHISHING:

In trading, phishing is a form of cyber fraud where criminals impersonate financial institutions or legitimate parties to obtain personal and sensitive information from victims. The goal of phishing is to steal information such as usernames, passwords, credit card numbers, and other financial information that can be used for their gain.

RUGPULL:

In crypto, Rugpull refers to a scam where cryptocurrency or NFT developers promote a project to attract investor funding, then shut it down or disappear, taking investors' assets with them. The way it works is that developers promote the project to attract investors and funds, then they disappear with that money, leaving the project dead and investors with total losses. Rug pull scams often occur in DeFi (decentralized finance) or NFT projects, where developers can control the code and functions of the project, including the ability to restrict or prevent token withdrawals.

To avoid fraud in trading, be wary of promises of excessively high profits and do not hesitate to seek further information. Do not trust unreasonable returns and always check the legality of the broker or platform you are using. Let's continue to follow #CariKataKripto to enhance our knowledge in trading.