Because I want to buy a bicycle, I visited the forum and found a lot of people in the cryptocurrency circle who are recruiting people and showing off their earnings. A lot of newbies are asking for guidance, so I wrote this article to warn you against scammers. I used to post a random Weibo post and it would get tens of thousands of views and private messages about needs. I found that Chinese people are really easy to be ripped off.
Hope it can help more people avoid being deceived:
In recent years, with the rapid development of blockchain technology and the booming cryptocurrency market, more and more people have begun to pay attention to and participate in it. However, behind this prosperity, there are also many scams and traps. As a long-term holder who has been working in the cryptocurrency circle for seven years, I have witnessed too many scams and frauds and felt the complexity and risks of this market. Anyone who "teaches you how to make money" may be a scammer.
1. Beware of scams that “recruit people”
"Headhunting" scams are very common in the cryptocurrency circle, especially on some social platforms such as Xiaohongshu and Weibo. These scams usually use "high returns" and "low risks" as bait to attract those who are interested in cryptocurrency but lack experience. They will use all kinds of gorgeous data and screenshots to prove their "success" and claim that as long as you join their team, you can get rich rewards.
However, these so-called "mentors" often just use newcomers to realize their own interests. Once you join, they will constantly ask you to invest more money, and even ask you to recruit more people to join. This pyramid scheme scam will only cause you and others to suffer huge losses in the end.
2. Be cautious about “contract transactions”
Contract trading is a high-risk, high-return investment method, and many scammers use this to attract investors. They will tell you how to make huge profits in a short period of time through contract trading and show some exaggerated profit screenshots. However, contract trading is extremely risky and you may suffer heavy losses if you are not careful.
Scammers often take advantage of newcomers' unfamiliarity with the market and lure them into high-leverage contract trading. Once the market fluctuates violently, these newcomers will face the risk of liquidation and lose all their money. The scammers will "disappear" when you suffer heavy losses, leaving you with regrets.
Whether you are a novice or an experienced investor, it is very important to do your own research before making any investment decisions. Do not trust other people's recommendations and so-called insider information, especially those that seem too good to be true.
By reading white papers, understanding the background of the project team, and paying attention to the project's technology and application scenarios, you can have a more comprehensive understanding of the true situation of a cryptocurrency project. In addition, joining some formal communities and forums to exchange experiences and opinions with other investors can also help you better identify scams.
3. Stay alert and don’t be greedy
The reason why scammers succeed is largely because they take advantage of people's greed and eagerness for quick results. Staying vigilant and not being greedy is the key to avoiding being scammed. Any investment decision should be based on rational analysis and a full understanding of the risks, rather than blindly pursuing high returns.