How to Spot a Scam and Save Yourself

Col. Jay   

Posted on April 20, 2019 12:53 PM

Hello MoonTraders!

It's been a while since I have posted and this time has been used to expand my knowledge about scammers in the crypto world and the financial world in general.

There is a common saying in the world: If it's too good to be true, it usually isn't.

Scammers prey on the hopes and dreams of millions of ordinary people who think that they alone have hit upon an ingenious idea that will make them rich (and that no one else should know). This leads them to keep the scam-deal secret and when eventually scammed, they have no one to share with. Or no one to ask for help. With ridiculous returns, everyone hesitates to ask on a public forum "Is this a scam?" because everyone wants to keep the profits to themselves and not share, it's human selfishness and greed, and scammers prey on that. 

We are not here to make you a saint 😉. But we are here to help you spot some common scams in the crypto OTC world. I have spent the past several weeks researching and observing these scams work and here is a short list for you if you are new to buying or selling crypto with your hard earned money.

1.  The scammer who posts an Ad to buy your crypto much above market value
One of the most common scams in OTC trading is when scammers post ads to buy your crypto much above market value. What is much? Depending on the cryptocurrency and it's market value, usually anything above 5% is a scam. e.g. Let's say you want to sell Bitcoin at it's market rate which is $5348 right now, you go to and click on "Sell", you select your payment method and see that there are some people buying for less than $5348 and some people buying for more than $5348. Then you spot one individual buying your Bitcoin for $6000. You think "Wow! what a great deal! I will get $6000 for something worth $5348. I could just flip this and make huge profits.😍😍😍wow! wow! wow! I am the smartest person ever born and will tell no one about this, let me open this trade" STOP!!!This amazing deal and scheme of yours is not unique and not special, it has scammed millions of people throughout the history of the world. You are not going to get rich off it, here's what's gonna happen.

1. You will open the deal with this higher-than-market price and fund escrow.
2. Scammer will tell you payment is made and threaten or beg you to release funds early (STOP! It's a scam and the funds will never reach you, Dispute immediately so MoonTrade support can help you.)
3. Scammer will upload proof that is hard to see and make excuses like "bro my camera is broken" (STOP! It's a scam and the funds will never reach you, Dispute immediately so MoonTrade support can help you.)
4. Scammer will upload proof and you will receive funds and release, the next day or a week later the funds will be reversed and scammer will be gone.  (STOP! Verify the trader, see how much feedback he has, how many past deals he has, are his other ads similarly priced? If he has low feedback, low trades and all his ads are priced 7%+ above the market he is probably a scammer.  Dispute immediately so MoonTrade support can help you, if you don't and the funds get reversed later MoonTrade cannot help you)
 However MoonTrade is coming up with its own solution to this system, called MoonSecure™. You can avoid this scam by converting all your crypto to the MOOT token supported by MoonTrade and Buy and Sell only that. Even if you get scammed, MoonTrade will fully reimburse you in MOOT after conducting an investigation. You will get your MOOT back and you can sell again. Repeatedly getting scammed will put your account under review.

Solution: Remember, you are not the only one seeing this ad, there are millions of others, the market does not work like this, if someone were to buy huge amounts of crypto above market price then the market price itself would rise to meet that demand. Be safe.

2.  The scammer who asks for your email, phone number etc for Western Union or payment methods where email or phone is not required
1. Another common type of scam will be when someone you are dealing with asks you for your email address associated with MoonTrade.(STOP! It's a scam to hack your account, Open a support ticket and report the user immediately, so MoonTrade support can help you.)
2. Someone asks you for your phone number or a code sent to your phone number. (STOP! It's a scam to hack your account, Open a support ticket and report the user immediately, so MoonTrade support can help you.)
3. Someone asks you for the 2FA code to your account (STOP! It's a scam to hack your account, Open a support ticket and report the user immediately, so MoonTrade support can help you.)

Solution: All of these scams rely on hacking your account while you chat with the scammer and then transferring your crypto from your MoonTrade account to their wallet. Always activate 2FA and never give out your 2FA details. For payment methods that need your email or phone number, give out only one. Better yet, make sure the email you use to access MoonTrade is not the email linked to your Paypal or Bank Account. These simple steps will save you a lot of trouble. Remember, Crypto transactions are irreversible and make you responsible for your own money.

3.  The scammer who begs you to release early even when the money is not in your account
"Hey bro, i'm really sorry, the money is there, it will come tomorrow, my wife and children are starving, release now bro, i promise you on my dog's life that the money is there"
"Hey bro, why are you being so selfish, i will complain to support and leave you negative feedback, release the crypto now!!"
"I will mess up your feedback, release the crypto or i will complain to support, i have more trades than you"


Sometimes, when dealing with established traders outside banking hours, it's true that payments are delayed, but that does not mean you forget good judgement and release the crypto based on good faith, some begging and sad story or threats. Remember, MoonTrade will review and remove negative feedback if the feedback is unjustified (unlike other exchanges) so be patient and tell the trader that you will release when the money reaches.

If they are scammers, they will cancel the trade. (Report them to MoonTrade immediately by opening a ticket or using the "Report User" button on their profile and explaining the reason) 

If they are genuine traders, the money will reach your account in due time and you can release it then.

4. The Scammer who wants to trade directly or outside the exchange
This is a particular favorite of scammers who have good communication skills. They will say things like:
 "the fees on exchange are too high, let's do direct trade, you can do a small amount to begin and then when you trust me we can do bigger amount"

STOP!! It's a scam. 

Usually the small or first few trades will go fine whether you are sending them money or crypto but the moment the amount exceeds a reasonable amount the scammer will disappear with your money and crypto and stop responding to you. NEVER trade outside an exchange, without escrow you are at the mercy of scammers and Cryptocurrency is new and scammers know how to fool or convince people with slick talk and a nice conversation into giving up their funds.

There are many more scams and scammers out there trying to cheat you out of your hard earned money, MoonTrade will keep updating you with the latest and greatest scams so you can protect yourself. Until then, stay safe and...

Happy Trading!

Leave a Comment:
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nice. If more people read stuff like this, the whole crypto scene would be a better place.👍
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Good post and funny too! ha ha.... and yes greed and sefishness is the basic motivation for all such scams. I hope i am never that silly 😛
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Some above market offers are because of the less convenient payment method/the location of the offer-er. Somebody with something less liquid than cash will have to pay a premium over 5% spot. Also, if they think its mooning soon, they will pay way up.
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Yep i agree however i think this is geared more towards noobs who see someonebuying at twice the price and they buyer only has 5 trades and the noobie gets screwed in his boobie.