How to avoid cryptocurrency scams ?

How to avoid cryptocurrency scams? 

 

(Description: Cryptocurrency is a rising modern market with many scammers keeping their eye on it. To have safe trades here, we have tips to avoid cryptocurrency scams.)

 

The digital currency market is something many traders are looking forward to. They want to invest in various cryptocurrencies to have high profits with other advantages. As the cryptocurrency allows storing, payment options, and fiat conversion. 

 

However, what scares traders is the scams that have taken over the market. Every day several frauds make it difficult to trust the trading process. Thus, we have the best methods to avoid the cryptocurrency scams. 

 

So, let’s begin to have smooth and successful crypto trading. 

Practices to Avoid Crypto Scams

 

Traders and investors should understand the key points before trading or investing. We have listed the useful practices for market players to avoid scams: 

 

• Trading in Bitcoin, Ethereum, or any other cryptocurrency, always research the market. Trusting the data on any random page could be harmful. 

 

• Never take the information at its face value. The market has many claims going around; traders need to investigate before trusting. Many offerors online have advantages that are unbelievable, in such cases: verify first, then invest. 

 

• Never fall for any government, public or private site directly offering cryptos. These are mostly frauds. 

 

• Private keys that brokers or exchanges provide should not be shared. They have all the data and funds; therefore need to be secure. 

 

• Traders can store their funds and data with cold wallets, as they are offline for security reasons. 

 

• Use the security measures available online like two-factor authentication, encryption, and others. They do not guarantee complete protection but are helpful. 
• Before visiting any website or using URLs, always double check. They can be frauds taking all your data from the device. 

 

• Don’t go for offers requiring high fees and, more specifically, if the payment is in cryptocurrency. 

Common Crypto Scams

 

With the best practices to follow, traders can have secure trade with knowledge of the scams. Most common cryptocurrency scams are analysed and discussed here: 

Phishing Scams

 

Phishing is a website based scam. The websites are malicious and mimic authentic websites. The frauds here try to trick traders with the same website page. They get login credentials in this manner to get sensitive information. 

 

It is highly risky as they get all the information to misuse. These advertise in the market using the following modes: 

 

• Emails 
• SMS texts 
• Social media platforms 
• Advertisements 

 

Check the URLs correctly to avoid phishing scams. 

Extortion Scams

 

Online scammers are advanced with technology. Using that, they collect information from original websites about traders. They further use the data to make users trust them. 

 

They recommend password change by showing old passwords. Or have profile updates with other data. They try to make traders believe in their page and find it to be legitimate. 

 

 By this, they extort money from the traders in the hope of the crypto trade. To avoid them, traders can: 

 

• Report such emails as spam 
• Use the best antivirus software
• Keep updating passwords from time to time 

Investment Scams

 

Investment scams are to attract traders to invest funds. They offer a proper website to trade in cryptos that looks authentic but is not. Such scammers create hype with low risk, low fees, and other features. 

 

They even try to keep a constant flow of traders. This is done to build the trust of people. Examples of investment scams are pyramid schemes. Tips to avoid these are: 

 

• Don’t trust the hypes 
• Send cryptos to third parties that you trust and know 
• Watch for website pages or errors present 
• Research well 
• Be alert traders or investors 

Giveaway Scams

 

Social media is not a safe place to trade. There are many fraudulent websites or hacks happening. Giveaway scams are such activities to cheat traders and investors. 

 

The giveaways could be through messages, emails, or on social platforms. They even share links to get information. 

 

Many fake accounts affirm that it’s a valid offer for traders to earn cryptos. There are presents, cash, or gifts in the form of cryptos. However, that is never fulfilled. 

 

Therefore, traders have to be alert and use reliable sources to invest in the market. They can never trust such giveaways for investments or earnings. 

Conclusion

 

Cryptocurrency trading has the number of scams increasing daily. This is a concern for traders and investors. They cannot freely invest in the market to make money. 

 

Hence, we have the best practices and tips for them to avoid cryptocurrency scams. The article has explored major scams taking place with what traders can do to avoid them. 

 

Happy Trading! Safe Trading!