5 Ways To Determine If You’re A Victim Of A Cryptocurrency Scam

There’s no shortage of scams and frauds in the cryptocurrency world. This is due to the fact that it’s still a relatively new industry, with many people buying and selling cryptocurrencies without any prior knowledge.

While there are plenty of legitimate companies operating in this space, there are also plenty of scammers trying to take advantage of new investors. Over time, as more people become aware of these scams, they will do their best to avoid them.

Fortunately, there are lawyers representing victims of cryptocurrency scams. But how do you know you’ve been a victim of a cryptocurrency scam? Here are five ways you can determine if you’ve dealt with a scammer:

1. You Can’t Withdraw Money You’ve Invested

The first sign of trouble is when you can’t withdraw the money you’ve invested. If you’ve put money into a cryptocurrency scam, you’ll quickly find that it’s impossible to take out your funds.

In many cases, scammers will promise investors they’ll be able to cash out their investments at any time. This is a common lie that’s used by scammers because it gives them an opportunity to steal as much money as possible before they’re caught.

2. Sudden Bankruptcy Claims and Unexpected Exit

A company’s sudden bankruptcy claim is probably one of the most common red flags you should pay attention to. This could be an exit scam where they take investor’s money and disappear into thin air or just abandon the company altogether.

3. Your Exchange is Anonymous

If an exchange has no physical address or phone number listed, then it’s probably a scam. Legitimate exchanges are happy to list their contact details so that you can reach out if there are any issues with your account or transactions.

4. Your Trading Volume is Way Out of Whack With its Market Cap

If your exchange has a very high trading volume compared to its market cap (that is, how much money it has raised), then it could be a sign that the company is manipulating its data to make itself appear more credible than it actually is. If this happens on a regular basis, then you should definitely consult lawyers representing victims of cryptocurrency scams. The exchange is likely trying to lure more investors into their trap by making themselves seem like a larger company than they actually are.

5. The Company Has Been Accused Of A Scam Attempt Before

In some cases, an exchange may have been accused of being involved in fraudulent activities in the past but was not found guilty by law enforcement officials or regulators due to lack of evidence. However, if this has happened more than once and/or the company has been accused of operating a scam multiple times over several years, then you could be a victim too.

In Conclusion

If you’re reading this, it’s likely that you’ve already encountered a cryptocurrency scam. And if you have, it’s important to know that there are ways to fight back and even recover your money.If you’re worried about whether or not your crypto experience has been legitimate, don’t hesitate to look up lawyers representing victims of cryptocurrency scams. They’ll listen carefully to your story and help determine whether or not you have a case.