The world of cryptocurrency offers freedom and opportunities, but unfortunately, it also attracts a lot of scammers. Every day, hundreds of new projects, exchanges, and “investment offers” appear – many of which exist solely to steal people’s money.
To avoid becoming a victim, you need to know the typical red flags that signal something is wrong.
🚩 Red Flag #1 – Promises of Guaranteed Profit
If someone says: “Invest €100 and get €1,000 per week guaranteed” – it’s always a scam.
The crypto market is volatile, and stable profits cannot be guaranteed.
The bigger and more unrealistic the promise, the higher the chance it’s a scheme.
👉 Tip: If you hear the words “guaranteed profit” – walk away immediately.
🚩 Red Flag #2 – Pressure to Invest Quickly
Scammers often use phrases like: “This opportunity is only available today”, or “Invest now or tomorrow will be too late.”
They want you to act without thinking or researching the project.
👉 Tip: Investments should never be rushed. If someone pushes you – that’s a huge warning sign.
🚩 Red Flag #3 – Vague or Anonymous Team
Any serious project should have public information about its founders, team, and company.
If the project hides its creators or only uses nicknames, that’s risky.
In many scams, the developers vanish without a trace once they collect the money.
👉 Tip: Always check the team on LinkedIn or other sources. If there’s no information – it’s not safe.
🚩 Red Flag #4 – Strong Marketing, No Technology
Scam projects often spend huge amounts on advertising, flashy websites, and promises – but the actual product has no real value.
If the website only uses buzzwords like “revolution in crypto” or “the world’s best investment tool”, but has no technical details, no whitepaper, and no open code – that’s suspicious.
👉 Tip: Look for projects with a real product, real use case, and transparent technical info.
🚩 Red Flag #5 – Pyramid or Referral Schemes
If profits come not from the product, but from recruiting new investors – it’s a pyramid (Ponzi scheme).
Many so-called clubs, investment funds, or staking platforms rely solely on new money flowing in.
Once no new victims join, the scheme collapses – and everyone loses.
👉 Tip: If someone promises higher returns just for bringing in friends – that’s a classic scam.
How to Protect Yourself?
Always do your own research (DYOR).
Trust only major, well-known exchanges and wallets (Binance, Coinbase, Ledger, Trezor, etc.).
Be sceptical of “too good to be true” offers.
Never invest more than you’re prepared to lose.
Conclusion
The crypto world is exciting, but full of traps. If you learn to recognise these five red flags, you’ll already be ten steps ahead of most beginners and avoid dangerous schemes.
👉 Remember: if something sounds too good to be true – it is.