Cryptocurrencies are becoming more mainstream by the day, and with that comes an ever-growing array of crypto gambling sites, unfortunately, there’s also a growing number of scams trying to cash in on the excitement too; crypto gambling has become the new frontier for scammers looking to prey on people’s enthusiasm for digital currency and if you’re thinking about getting involved in crypto mining or buying your first GPU/rig, we highly recommend reading up on all of the dangers beforehand and staying vigilant at all times- the vast majority of legitimate crypto companies will not try to scam you out of your money — it’s just a matter of staying alert and discerning between the scams from the real deal.
What is a Crypto Gambling Scam?
Crypto gambling scams are similar to traditional online gambling scams in that they promise high earnings with little risk, crypto scams usually come in one of three flavors: fake offers, fake reviews, and fake crowdfunding campaigns.
- Fake offers are the most obvious and common form of crypto scam. If someone tries to sell you a mining rig, they want you to mine currency for them. No matter how attractive the offer, you’re mining on someone else’s behalf.
- Fake reviews are a bit trickier to spot, but they are very similar to fake offers. A phony review may not offer to sell your rig, but retain a mining contract on your behalf, again, you’re giving away your computing power.
- Fake crowdfunding campaigns are a new twist on the classic crypto scam- a fraudulent campaign may propose to fund a new cryptocurrency or blockchain network, or a cryptocurrency gaming website, the scammer claims to offer crypto tokens for a 10% return, you must invest in the scammer’s new blockchain network to fund it.
How to Avoid Crypto Gambling Scams
There are a few ways you can avoid falling for a crypto gambling scam: The first and most important thing to do is to stay grounded and avoid getting too excited about the prospect of making money from cryptocurrency, in the rush to get rich quick, a lot of people get sucked into crypto gambling scams — and the vast majority of people suffer from the same problem, so never get too excited about your potential earnings.
One of the best things you can do to stay ahead of the crypto gambling scams is to be your investor- if you’re looking to buy your first mining rig, or you’re interested in mining a specific coin, you can choose to buy your equipment, and ding so puts you in control of your investment and reduces the risk of falling victim to a crypto scam or if you’re looking to invest more than a few dollars, you can take advantage of several services that offer cryptocurrency investment funds- these are legal investment funds that allow investors to pool their money together and buy into a professionally managed fund that uses cryptocurrency investments.
Read Up Before You Buy
We cannot stress enough the importance of research before investing in any form of cryptocurrency, once you’ve decided that mining is the path for you, it’s important to do your research and learn more about the different coins and trading pairs available, keep in mind that not all coins are created equal, so don’t just buy any old coin just because it’s cheap – you can learn more about what to look for by reading up on popular mining guides, blogs, forums, and social media groups.