Plenty of people, some of them experienced crypto investors, get snared by scammers every day. If you fall into their sophisticated traps, you could watch a fraudster sail off into the sunset with your hard-earned cash. Luckily, these three warning signs will help you spot a con artist a mile off.
1. Dude, where’s my blockchain?
Cryptocurrencies operate on blockchain networks. You don’t need to know exactly how a blockchain works — but you do need to know that without one, crypto tokens can’t exist.
Scammers like to conceal their frauds by claiming that their blockchain is “in development” or “about to be released.” The OneCoin scam is a prime example. Per a BBC investigation, OneCoin executives claimed that they kept their blockchain on their own computers.
But bona fide crypto projects all operate on a publicly accessible blockchain. Some have their own, like Bitcoin (