The current crypto market is a raging bull that is introducing us to a new generation of traders and investors. These investors are those who are engrossed in participating in get-rich-quick schemes, and obsessing over hype and meme coins like the Dogecoin that are being pumped and dumped through video-sharing and social media platforms. However, along with this rush of savvy investors is the flood of people looking to cash in on this flowing market. 

While there are some Crypto Influencers who are genuine crypto experts, most are just hidden savvy scammers of the cryptocurrency world. Here are a few ways that these cryptocurrency influencers try to trick people:

Trading Educators:

Have you seen advertisements like, ‘I went from being a miserable construction worker to becoming financially-free – join my crypto-trading course to find out how’ or ‘Want to know how to turn your 5k into 50k by trading cryptocurrencies? Sign up for the ONLY trading course you will ever need’?

Now, there are a lot of benefits to learning technical analysis and educating yourself about crypto-trading. The problem is that most of these ‘gurus’ are people who have only just completed a course or two themselves, and have little to no trading experience. If we were to guess, we would claim that these educators make more money through their courses, commissions, and referrals, than they have ever made through crypto trading. 

Crypto Coaches:

Crypto coaches are not all that different from trading educators. The main difference is that the latter markets itself as a ‘one-stop shop’ for beginner or lazy investors, providing more expansive services and charging a great deal more money. These ‘analysis experts’ will do all the heavy lifting for their clients –against a hefty fee, of course. It is not rare for people to pay up to $100 per week for such services – a terrific amount for any ‘coach’, especially if they manage to retain you for a decent length of time. 

The kicker: normally, these ‘coaches’ just use this subscription money to sign up for more sophisticated trading groups like Glassnode or Delphi Reports. They use these platforms to obtain the trading reports, data, and analysis, repackage them, and pass this package off as their own. 

We are not saying that crypto coaches do not have value. However, you will be paying a lot more for content that is largely unoriginal, and created by someone far more informed and educated than your crypto coach. In other words, you could simply skip the middle person and directly sign up for the source of the information (and for far cheaper, too). 

Crypto Influencers:

Crypto influencers can operate in a number of ways, such as:

  1. Promoting a Fake Project:

Crypto influencers start by marketing a new, ‘promising’ project, through social media. They will also provide a wallet address, and ask all their followers to transfer a specific cryptocurrency to their wallet, in exchange for tokens for this new project. 

They will assure you that, being one of the project’s influencers, they will receive the coins before the general public, which will give their followers a head start. 

  1. Creating Enticing Contests:

Another way that crypto influencers operate is by creating contests that promise tempting prizes for the winners. They will lead you to believe that they are collaborating with a leading crypto exchange, and have been asked to promote a new product belonging to the exchange. They will create a sense of urgency that will not only compel you to sign up for the contest, but also send the required funds over to them. 

Sometimes, these influencers also force you to provide your password, private keys, and even the recovery question, convincing you that this information will help you speed up the cash-in process at the promo. 

Remember to be watchful of Google forms requesting personal information like wallet details or email IDs and passwords. 

  1. Proposing Solutions to Problems:

Influencers also often comment on articles and videos, proposing better solutions than the ones mentioned in the content. For instance, the influencer might suggest that they have a faster and more surefire way of retrieving funds than the way discussed in the content material. 

Even if the content does not talk about a specific problem, you might find an influencer making a random comment about some ‘lucrative investment opportunity’.

The objective for such influencers is to get people to contact them directly. For this reason, they even go as far as to provide their phone numbers or email addresses. Once people reach out, they are tricked into providing private information that will help the scammers steal your money. 

Final Word:

To sum up, while there are a few genuinely good people trying to help people make money through crypto, the large majority is that of frauds and scammers masquerading as people who want to help and assist. We hope that this blog will help you identify such frauds, and steer clear of them.