10 Signs a Crypto Investment Platform Is a Scam—and How to Avoid It

Key takeaways

• Fake crypto investment platforms give themselves away in a few obvious ways.

• Many use fake reviews, incorrect contact information and unrealistic promises to lure you in.

• The best approach is a healthy dose of skepticism. Watching for these red flags will keep you safe while investing.

The burgeoning cryptocurrency market, with its lack of centralized authority and a constant flow of inexperienced users, makes digital assets a prime target for scammers. Fake crypto investment platforms are a common scam method, masquerading as useful services for crypto traders.

Before signing up for any crypto investment platform, it’s essential to learn the telltale signs of a scam. 

This article will detail what to watch out for and how to verify if a crypto investment platform is legitimate. These tips will teach you how to avoid crypto scams. 

Did you know? The FTC hosts a crypto scam detection guide that allows you to view common crypto scams, sorted by company name, scam type and other keywords. 

How to spot a crypto scam

Here are 10 crypto investment scam red flags to watch for when choosing a cryptocurrency investment platform.

1. Promising unrealistic returns

• What to watch for: Fake crypto investment platforms will try to entice you with unrealistic promises, like “Make 1 Bitcoin in just a few days!” A legitimate crypto exchange won’t need to sell you with fake deals.

• How to verify: The platform’s services should speak for themselves. None of them will give you a special advantage over the other, especially not one that can net you a Bitcoin just days after signing up. This is one of those prime crypto scam warning signs.

2. Fake team members

• What to watch for: It’s easy to make an “our team” page on any website, let alone one offering a decentralized service. At a minimum, these pages should include photos, descriptions and links to LinkedIn or other verified social media platforms.

• How to verify: Double-check team pages for legitimacy. Some scammers might also set up fake social media pages, so scan those for authentic interactions and delve deep into each team member’s project history.

3. Inconsistent white paper

• What to watch for: Let’s be honest, most scammers won’t expect customers to read their project white paper. It’s probably something they threw together in ChatGPT or even plagiarized from a legitimate project.

• How to verify: Read a project’s white paper in-depth and watch for legitimate use cases. Make sure the project…