1. Pump and Dump Scams: Avoid any cryptocurrency that is heavily promoted as being the “next big thing” and avoid investing in a coin before doing your own research.
2. Phishing Scams: Be wary of emails or social media messages that seem too good to be true, or ask you to provide sensitive information like credit card numbers or passwords.
3. Fake Coins: Double check the legitimacy of any cryptocurrency coins you are considering investing in to make sure they are not fraudulent or counterfeit.
4. Fake Exchanges: Verify the reputation of any cryptocurrency exchange you plan on using and only use sites that have been thoroughly reviewed.
5. Ponzi Schemes: Watch out for investments that guarantee high returns with no risk. These are typically scams and should be avoided.
6. Unregulated Initial Coin Offerings (ICOs): Do your research before investing in an ICO. Ensure that the company has a valid business plan and that it adheres to the necessary regulations.