Ways To Avoid Cryptocurrency Scams

Ways To Avoid Cryptocurrency Scams

With cryptocurrency being one of the latest financial trends, scammers are taking advantage of this opportunity to earn money themselves. You have to be wary about almost anything on the internet, especially when it comes to financial deals, offers, or sales. Having the tools to identify online scams when you see them can make your life a little easier when you come across cryptocurrency decisions in the future and might help you avoid a financial catastrophe. If you have been scammed and are struggling with bankruptcy, then consider hiring a Tennessee Bankruptcy Attorney.


If you are new to cryptocurrency and find yourself wondering whether you should engage in this form of currency, then learning about some of the basics is essential for avoiding future scams. First, cryptocurrency is an online digital form of money that only exists in electronic form, meaning this type of currency is used for online financial transactions. However, there are some cases where you can cash out your cryptocurrency.

With the benefits of using cryptocurrency being having no bank fees and experiencing faster transactions, there are some risks involved that you should know about. Since the United States government does not back or cover cryptocurrency, your cryptocurrency is not insured like your money would be if you were saving your money in a bank. With almost any digital endeavor, you open yourself up to the risk of being hacked. Lastly, cryptocurrency can increase in value sure, but the value can also decrease unexpectedly.

Unlike some other transactions, you usually cannot undo a cryptocurrency transaction. Since they are still new, cryptocurrencies are also not legally protected like a credit card would be. This means if you are scammed, you may not be able to take legal actions when cryptocurrency is involved.


Risks like this are what make defending yourself against cryptocurrency scams so vital to protecting your financial future. The last thing you want to happen is to lose all your money from a scam that could have easily been avoided if you just had the right information. Some of the top red flags of internet scammers are:

  • Promises of free money
  • Too-good-to-be-true deals
  • Guaranteed returns double your money
  • Unrealistic claims with little to no details at all
  • Poorly worded advertisements, contracts, or deals

Almost every Social Media message or advertisement that involves you paying with cryptocurrency is a scam. Do not click on or follow the instructions of these messages. You also need to be wary of scams like this on job sites. If something sounds off or there are glaring grammatical mistakes, you are probably looking at what a scammer wrote. Look at Tennessee job tips if you are having trouble finding work.


Ask for help from our lawyers in Chattanooga, Tennessee, and North Georgia if you suffered financial losses from a scam and find yourself facing bankruptcy decisions as a result. Feel free to contact Tom Bible Law today by dialing (423) 690-7712 to talk to one of our Chattanooga Bankruptcy Lawyers for a free consultation. Our legal team of bankruptcy attorneys serves clients throughout Tennessee cities like Chattanooga and Tullahoma.