Never Fall For These Crypto Trading And Blockchain Traps

For many financial experts, the scam has been a part of financial history, and cryptocurrency has no exemption. If you are new to the crypto market and blockchain, you should be extra careful in protecting yourself against these traps.

Ever heard about “The Ponzi Scheme,” Italian scammer Charles Ponzi promised massive profits to investors and then ran off together with the invested money.

In case you are offered 10% off per year or more in a cryptocurrency project, then you should doubt it. Be aware that the Ponzi Scheme works by offering the old investors the capital invested by the novices. A growing pool of investors is necessary to keep the operation running.

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In this kind of crypto trap, the profits come straight from the most recent victim of Ponzi. When the scheme runs out of money, it will then collapse. However, most of the collapses occur when the scammers hinted that the net is closing in on them. After that, these criminals will disappear.

If you are an old investor and encouraged to find new investors, then it’s a trap to be avoided. Offering higher profits or returns, it is an obvious sign of a basic Ponzi scheme. The best thing you can do is not to invest in a crypto project that promises high returns.

Below are other crypto trading traps:

The Stop Drive

If you experience that the Bitcoin fell at $2,000 in a matter of two minutes and you lost that trade at $1,000, for instance, then the market resulted to jumping up a lot after. This scenario is a trap called “stop the drive.”

Mind that the stop drive might occur from any quarter. If it came from an exchange that is aware of where your stop is, it could crash the price together with the fake moves. After that, you will notice that your profits are sweeping up.

As a trade, the best thing you can do is not to have stop losses that are registered with the platform. Make sure that you will not lever too high that you cannot hold through the fat move. Besides, it’s best to deal with reputable trading platforms like bitcoin revolution official website

The Exit Scam

This scam is very common among small exchanges and initial coin offerings (ICOs). It works by taking the money and run, be it an exchange or ICO.

Exchanges were taken into another level of scam, where scammers are allowed to trade with them. These criminals sell the coins elsewhere, but the investors think that that they are trading them and not knowing that they are just playing the account system.

In order for you to avoid this situation, make sure not to keep large cryptocurrency balances on your exchanges. Besides, it’s also a nice idea to take out the coins regularly and put on the off-exchange wallet. Do not forget to dump exchanges that cannot be communicated with or don’t pay out fast.

Now that you are already aware of the potential traps that you may encounter when making a trade, it’s time for you to know the traps surrounding the blockchain.

  • Business leaders were made believed that Bitcoin is essentially the blockchain, so they cannot integrate cryptos within their business
  • Implementing new technologies in business like blockchain is a cool decision
  • Successful blockchain implementation requires industry-wide collaboration


Even you are already an old crypto trader, it does not necessarily mean that you are free from a trap. Some scammers target both seasoned and new traders. So, you need to be more attentive in every trade you make. Consider the ideas above, and you will boost your confidence in your trading decisions.

If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.

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