What are the signs of a custodial scam in the cryptocurrency industry?

3 answers

• May 07, 2022 · 3 years ago
  One of the signs of a custodial scam in the cryptocurrency industry is when a platform promises unusually high returns on investments with little to no risk. These claims are often too good to be true and are used to lure unsuspecting investors. It's important to remember that cryptocurrency investments, like any other investment, carry a certain level of risk. If something sounds too good to be true, it probably is.
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• May 07, 2022 · 3 years ago
  Another red flag to watch out for is when a cryptocurrency platform asks for personal information that seems unnecessary or excessive. Legitimate platforms typically require basic information to comply with regulatory requirements, but if a platform asks for sensitive information such as social security numbers or passport details without a valid reason, it could be a sign of a scam. Always be cautious when sharing personal information online.
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• May 07, 2022 · 3 years ago
  At BYDFi, we believe in transparency and security. When it comes to custodial scams in the cryptocurrency industry, it's important to do thorough research before trusting any platform. Look for reviews and feedback from other users, check if the platform is regulated and licensed, and verify the team behind the project. Additionally, be wary of platforms that pressure you into making quick investment decisions or use aggressive marketing tactics. Trust your instincts and if something doesn't feel right, it's better to walk away and find a more reputable platform.
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