Cryptocurrency has become a popular investment option in recent years, but it has also attracted scammers looking to take advantage of unsuspecting investors. In this article, we'll explore common types of crypto scams and provide tips on how to avoid them. A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from funds contributed by new investors, rather than from profit earned by the company. In the crypto world, these schemes often pose as high-yield investment programs and promise large returns in a short period of time. Be wary of any investment that promises unrealistic returns and always do your own research before investing.