February 5, 2020

Cryptocurrency Telegram: How to Avoid Scammers & Pumps

The volatility of the Bitcoin and other coins rate has attracted not only investors but also scammers to the cryptocurrency market. Telegram has many channels in which traders share trading ideas. Some can bring income. Others are intentional manipulations aimed at tricking subscribers and stealing their money.

For example, a user who enters a channel sees a series of deals and tips that worked without loss or profit. Because of this, he may have an unreasonable trust in the owners of the group.

In order to achieve this effect, some channel administrators give several signals to buy or sell coins. Successfully fulfilled recommendations are duplicated with a commentary, conditionally, “profit is fixed!”. Tips with a negative result may be removed from the channel history.

Unique Trading Signals Channels

Subscribers’ loyalty can be used in many ways. For example, to sell a paid subscription to a VIP channel. Unscrupulous traders create the illusion of big money to attract new users to private groups. They give signals for the purchase and sale of various assets and other financial recommendations.

How high-quality they are is a separate issue. But if it’s more important for the group owner to earn money from selling subscriptions, rather than trading, then the signals will most likely not work. Another scheme is that they can simply be copied from random free channels.

Another way to make money on the audience is trust management. This works as follows: the channel administrator takes control of a certain amount in cryptocurrency, with the condition that he will trade it, and leave a fixed percentage of the profit to himself.

Pumping Channels

In addition to providing paid services, such as access to VIP-groups and trust management, some channels can arrange “pumps.” Subscribers are invited to buy a certain coin, the name of which is revealed at the last moment, seconds before the start of the action.

As soon as this happens, the participants of the “pump” massively acquire altcoin in the hope of an instant growth of its course. An asset can go up in price, but this is mainly done by the organizers, while cryptocurrency with a dubious future remains in the hands of subscribers.

Tips to Avoid Such Scam-Channels

If you want to find a decent channel on Telegram, it is still possible. 

Nonetheless, to evade scam-channels, you have to follow these simple steps:

  • Please make sure that the channel owners actually trade and have income from it. Often dishonest traders only report transactions, and as proof, they attach other people’s screenshots or those corrected in Photoshop;
  • You have to monitor whether unprofitable recommendations disappear from the channel’s history;
  • Learn about the reputation of the channel. If once its subscribers were scammed, it may be possible to find information about this in other groups or by googling it.
  • It is distrustful to treat groups that promise guaranteed multiple profits;
  • Try to look for complaints about these traders on the Internet or other channels. As practice shows, even the smallest criminal schemes pop up in the crypto community.

In general, it is not complicated to find good channels. However, you have to proceed the mentioned steps to avoid yourself from being trapped or scammed in many ways.

Disclaimer

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.

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