Common Crypto Buying Scams and How to Spot Them

Cryptocurrency has taken the financial world by storm, attracting millions of people eager to jump on the bandwagon. But with great opportunity comes great risk—especially from scammers. Buying crypto can feel like stepping into the Wild West if you don’t know what to watch out for and which crypto exchanges and wallets are legit, maybe it is your first time who knows. So, how do you keep your hard-earned money safe? Let’s dive into the most common crypto buying scams and learn how to spot them before it’s too late.

For newcomers, the first question is often where to start — or more precisely, where can you buy bitcoin safely. The best approach is to stick with verified exchanges and wallet providers that have a clear track record, transparent security practices, and visible customer feedback. If a deal looks too good to be true or promises guaranteed profits, it almost always is.

That’s a crucial step. Many scams begin when users search for quick ways to purchase crypto and unknowingly click on fake websites or download fraudulent apps.

Buying crypto doesn’t have to feel like the Wild West — as long as you know what to watch out for. In this guide, we’ll break down the most common crypto buying scams, how they operate, and the telltale signs that help you spot them before it’s too late.

What Makes Crypto a Hot Target for Scammers?

Cryptocurrency, for all its innovation and promise, has unfortunately become a goldmine for scammers. One of the core reasons is the built-in anonymity of blockchain transactions. While this feature is great for privacy-conscious users, it also opens the door for criminals to operate in the shadows. Unlike traditional banking systems where identities are verified and accounts are traceable, many crypto wallets don’t require real names or personal details. This makes it incredibly difficult to track down fraudsters once they’ve made their move.

Another major issue is the irreversible nature of crypto transactions. When you send funds using a credit card or PayPal, you usually have some recourse if things go wrong—you can dispute the charge, file a complaint, or even reverse the payment. Crypto doesn’t work like that. Once you send coins to a wallet address, it’s gone for good. This lack of a safety net is exactly why scammers love using crypto as a payment method—they know the victim has little to no way of recovering their money.

Then there’s the hype. Crypto is everywhere—on the news, in pop culture, and all over social media. Newcomers, drawn by tales of overnight millionaires, often dive in without fully understanding how the technology works. Scammers exploit this by using fancy-sounding buzzwords, convincing websites, and promises of impossible returns to reel people in. And because the technology is still relatively new and complex, it’s easy to confuse or overwhelm someone who doesn’t have a solid background in it.

Put all this together, and you’ve got a perfect storm. A system that protects user anonymity, makes reversing payments nearly impossible, and thrives on rapid growth and hype creates an ideal playground for scammers. But here’s the good news—once you understand how and why these scams work, you’re already a step ahead of most. Awareness truly is your first line of defense.

Common Crypto Buying Scams to Watch Out For

Scam Type	How It Works	What Happens to Victims	How to Spot It	Pro Tip
Fake Exchanges	Fraudsters set up a phony crypto exchange that looks like a legitimate platform.	Users deposit money or crypto but can’t withdraw or find the site later.	Strange or misspelled URLs, no company registration, lack of customer support, fake testimonials.	Stick with regulated exchanges like Binance, Kraken, or Coinbase.
Phishing Scams	Scammers send fake emails or links mimicking real crypto services.	Victims unknowingly submit login info or private keys to fake websites.	Odd-looking email addresses, urgent messaging, fake branding, and misspelled domain names.	Always access exchanges and wallets by typing their official URL directly.
Ponzi Schemes / Fake ICOs	Promises of massive returns through “new” crypto coins or tokens.	Early investors are paid with new investors’ money until the system collapses.	Guaranteed profits, limited-time offers, flashy websites with little technical detail or documentation.	Research projects thoroughly; avoid schemes that pressure you to “invest fast.”
Fake Wallet Apps	Malicious apps impersonate legitimate crypto wallets.	Users unknowingly install apps that steal seed phrases or private keys.	No reviews or tons of fake ones, recently created apps, or apps outside trusted stores.	Only download wallet apps from official platforms like Google Play or Apple’s App Store.
Social Media Impersonation	Fake accounts mimic crypto influencers or celebrities.	Victims send crypto to “get double back” but never receive anything.	Lookalike handles, unverified accounts, and too-good-to-be-true giveaways.	Verify the user’s identity and never send crypto expecting something in return.

How to Protect Yourself When Buying Crypto

Staying safe while buying cryptocurrency is all about vigilance, verification, and good security habits. The crypto market is growing fast — more than 560 million people worldwide now own digital assets (TripleA, 2025) — and that makes it an increasingly attractive target for scammers and hackers. In 2024 alone, over $1.8 billion was stolen from investors through phishing, exchange hacks, and fraud (CertiK Annual Security Report). The good news? Most of these losses could have been avoided with basic precautions.

1. Verify Everything Before You Act

Before making any crypto transaction, verify the website URL, sender address, and source. Scammers often use near-identical domain names (for example, coínbase.com instead of coinbase.com) to trick users. Always type the website address manually or use bookmarks for official sites.

When dealing with emails or social media messages, check the sender’s domain — legitimate companies like Binance, Kraken, or Changelly will never contact you from free email services like Gmail or Yahoo. Likewise, when downloading crypto apps, verify the developer’s name, number of downloads, and reviews in the Google Play Store or Apple App Store.

This simple diligence can save you from phishing and fake exchange scams, which accounted for nearly 20% of all reported crypto thefts in 2024 (Chainalysis).

2. Enable Two-Factor Authentication (2FA)

Enabling two-factor authentication (2FA) adds a vital layer of protection beyond your password. Even if a hacker obtains your login details, they can’t access your account without the secondary code generated on your phone. Think of it as adding a second lock to your front door.

Use reliable 2FA apps like Google Authenticator, Authy, or Microsoft Authenticator — not SMS verification, which can be intercepted via SIM-swapping attacks. Many exchanges, including Coinbase and Gemini, now require 2FA for account access.

According to Google’s Security Blog, enabling 2FA can block over 99% of automated hacking attempts, making it one of the simplest yet most effective defences available.

3. Keep Private Keys and Seed Phrases Offline

Your private keys and seed phrases are the ultimate keys to your crypto wallet. Anyone who gains access to them can empty your holdings instantly — and recovery is impossible. Never share these credentials, not even with customer support agents or “technicians” claiming to help you.

The safest method is offline (cold) storage. Write your seed phrase on paper or engrave it on a metal backup plate, then store it securely in a private location. Avoid keeping it in cloud storage or on an internet-connected device.

Many high-profile hacks, including the Atomic Wallet breach of 2023, were caused by exposed seed phrases or malware stealing wallet files. Treat these details like the PIN to your entire fortune.

4. Research Before You Invest

Before you buy a new coin, token, or join a platform, dig deeper than the marketing pitch. Check independent reviews on Reddit, Trustpilot, or CryptoCompare. Look for transparency: a real development team, a published roadmap, and working social media channels are good signs.

Avoid projects promising “guaranteed returns” or “secret insider deals.” According to the FTC, over 46,000 Americans lost more than $1 billion to investment-related crypto scams between 2021 and 2024 — most of them promising unrealistic profits.

Trust your instincts. If something sounds too good to be true, it usually is.

5. Avoid Clicking on Unverified Links

One of the most common attack methods is phishing — fake links designed to steal your credentials. Scammers send DMs, emails, or comments with urgent calls to action like “Verify your wallet” or “Claim your bonus.” Clicking these links can lead to cloned websites that harvest your passwords or install malware.

Always navigate manually to official websites or use verified bookmarks. Exchanges such as Binance and Kraken also provide anti-phishing codes you can activate in your account settings to help you identify genuine messages.

6. Use Hardware Wallets for Long-Term Storage

If you hold significant crypto, use a hardware wallet like Ledger Nano X or Trezor Model T. These devices keep your private keys completely offline, immune to malware or phishing attacks.

Hardware wallets may cost between £60–£150, but they offer the highest level of protection for long-term investors. Data from Ledger shows that less than 0.01% of users have ever experienced a breach due to the device itself — almost all losses stemmed from phishing, not hardware failure.

7. Keep Software and Devices Updated

Outdated software is one of the biggest cyber risks. Always update your wallet apps, browser, and security software. Developers frequently patch vulnerabilities that attackers exploit.

For example, in 2023, MetaMask released a critical update fixing a browser extension flaw that could expose wallet data. Users who delayed updating remained at risk for months. Regular updates close those security gaps before criminals can use them.

Quick Comparison of Crypto Buying Scams

The world of cryptocurrency is full of opportunity, but it’s also a breeding ground for scams. As of 2024, crypto fraud accounted for an estimated $3.9 billion in global losses, according to the FBI’s Internet Crime Report—a sharp rise from the year before. The surge in scams mirrors the growing popularity of Bitcoin, Ethereum, and other digital assets, as millions of new users enter the market hoping to profit. But without caution, buying crypto can quickly turn from investment to disaster.

Fake exchanges are among the most common traps. These sites often imitate trusted brands like Binance, Coinbase, or Kraken, copying their logos, layout, and even customer support pages. A 2023 Kaspersky Labs report found that roughly 14% of crypto-related phishing incidents involved imitation trading platforms. They look legitimate enough to convince users to deposit money or transfer Bitcoin, only for the website to vanish overnight. Even a single misplaced letter in the URL—like “coinbaze.com” instead of “coinbase.com”—can cost an investor everything. Legitimate exchanges always use secure HTTPS connections, are regulated by agencies such as the FCA (UK) or FinCEN (US), and never pressure users to deposit quickly.

Phishing scams are another major threat. Instead of creating full websites, these schemes rely on emails, text messages, or DMs that look like official communications from exchanges. The message typically warns that your account will be “suspended” or that you must “verify” a transaction. Once you click the link, you’re redirected to a fake login page where your details are stolen. Chainalysis reported that phishing-based crypto theft exceeded $374 million in 2024, with many incidents starting on Telegram, Twitter (X), or Discord. Subtle signs—awkward phrasing, poor grammar, or sender domains that don’t match the real company—often give these scams away, but in the rush to act, many overlook them.

A more elaborate form of deception comes in the shape of Ponzi schemes and fake Initial Coin Offerings (ICOs). These scams thrive on hype and greed, promising huge returns for early investors in a new coin or project. The most infamous example remains BitConnect, which collapsed in 2019 after defrauding investors of over $2.4 billion. The model is simple: early participants get paid from the funds of newer ones, creating a short-lived illusion of profit. The U.S. Securities and Exchange Commission (SEC) flagged over $200 million in unregistered or fraudulent ICOs in 2023 alone. Common giveaways include vague whitepapers, anonymous teams, and guarantees of “risk-free” returns—phrases no legitimate project would ever use.

Scams have also moved into app stores and social platforms. In 2024, cybersecurity firm ESET uncovered more than 300 fake wallet apps posing as trusted tools like MetaMask, Trust Wallet, and Exodus. These apps secretly harvest private keys, allowing scammers to drain entire wallets. On social media, fake profiles of crypto influencers and celebrities continue to promise “giveaways” or “doubled returns” in exchange for a small deposit. The Federal Trade Commission (FTC) reported that Instagram, Facebook, and Telegram were responsible for over 46,000 consumer scam reports in 2023, most tied to fraudulent investment offers.

What makes these scams so effective is that they blend urgency, anonymity, and credibility theatre. A professional-looking logo, a blue-tinted website, or a copied press release can convince even cautious buyers that they’re dealing with a legitimate business. The lack of chargeback options in crypto makes it worse—once the coins are gone, recovery is virtually impossible.

The best defence remains awareness. Always verify URLs and licensing information before you buy Bitcoin or any other digital asset. Stick to exchanges that are transparent about their regulation and security measures, and never send funds through links or DMs. The crypto space may reward curiosity and innovation, but in matters of safety, scepticism is your strongest asset.

Digging Deeper: Why Do People Fall for These Scams?

Reason	Description	How It Affects Victims	Common Examples	How to Counter It
Fear of Missing Out (FOMO)	The urgent feeling that others are profiting and you must act quickly to avoid losing out.	Leads to rushed decisions without proper research or caution.	Investing in hype-driven ICOs or new coins.	Take time to research and avoid impulsive moves.
Lack of Knowledge	Many newcomers don’t fully understand how crypto works or the risks involved.	Makes them easy targets for scammers using technical jargon.	Falling for fake wallets or phishing scams.	Educate yourself with trusted sources regularly.
Trust in Appearances	Scams often mimic legitimate platforms or trusted personalities to build false credibility.	Victims assume the offer or platform is genuine.	Fake exchanges, social media impersonation.	Verify URLs, check official channels carefully.
Desire for Quick Wealth	The hope to get rich fast without the usual effort or time investment.	Leads to ignoring warning signs and falling for “too good” offers.	Ponzi schemes promising guaranteed returns.	Be skeptical of guaranteed profits and hype.
Emotional Manipulation	Scammers create pressure or use emotional appeals to cloud judgment.	Causes panic or excitement that overrides rational thinking.	Urgent “limited-time” investment pitches.	Pause and reflect before making financial moves.

Real-Life Examples of Crypto Buying Scams

• The Mt. Gox Collapse is one of the most infamous cases in crypto history. Once the largest Bitcoin exchange in the world, Mt. Gox handled over 70% of all Bitcoin transactions globally. However, in 2014, it suddenly filed for bankruptcy after announcing it had lost approximately 850,000 bitcoins—worth hundreds of millions of dollars at the time—to hackers. Many users had their life savings trapped on the platform, leading to devastating financial losses and shaking trust in the crypto market.
• The OneCoin Scam is another major example that made global headlines. Marketed as the next big cryptocurrency, OneCoin attracted millions of investors worldwide with promises of huge returns. However, investigations later revealed it was a massive Ponzi scheme operating under the guise of a legitimate digital currency. The scam defrauded investors out of billions of dollars before authorities stepped in to arrest the masterminds behind it. This case serves as a stark warning about the dangers of blindly trusting new, unverified crypto projects.
• Bitconnect was another notorious scam that fooled thousands of investors with promises of guaranteed high profits through a lending and exchange platform. Its multi-level marketing structure lured users in, but when the platform abruptly shut down in 2018, the value of its token plummeted to zero overnight. Investors lost significant sums, and Bitconnect quickly became synonymous with crypto fraud.
• PlusToken was a fraudulent crypto wallet and investment platform that targeted users primarily in Asia. It promised extraordinary returns through a Ponzi-like system. When the scheme collapsed in 2019, it was estimated that PlusToken defrauded victims of over $2 billion. The aftermath saw several arrests and a ripple effect on the cryptocurrency market.
• The PlexCoin ICO scam promised investors a 1,354% profit in less than a month. The U.S. Securities and Exchange Commission (SEC) halted the ICO, calling it a fraudulent operation. The founder was charged with fraud, emphasizing that even seemingly promising ICOs can be elaborate scams preying on investor greed.