In the digital world, it is easy for anyone to set up a website, account or online presence. That’s why there are many scammers out there who take advantage of the relative obscurity of cryptocurrency to rip off unsuspecting people.
Let’s take a look at 6 tips that can help you avoid cryptocurrency scams and protect your money. The first step in staying safe from cryptocurrency scams is understanding that they exist and recognizing the ways they target new users.
For example, because so many new digital currencies have emerged recently, there are now plenty of opportunities for scammers to pretend to be the creators of those currencies and ask their victims to send money “for security reasons” or some other story.
This article will give you six pieces of advice about how to avoid cryptocurrency scams. Keep reading for more information and remember that if something seems too good to be true, it probably is.
1.Learn About Crypto, Know Your Investments and Stay Safe
If you are trying to avoid cryptocurrency scams, it’s important to know what you are investing in. This is true even if you plan to invest in a relatively safe cryptocurrency like Bitcoin.
Because you don’t want to buy into scammers’” coin and end up losing your money, you need to be sure you know what each currency is, how it works and who is behind it.
There are many good sources of information about cryptocurrencies online. You can also join online cryptocurrency communities and learn from the people there. To avoid cryptocurrency scams, make sure that you trust the sources you are getting your information from. If someone has approached you with a new investment idea, research it before committing any money.
2.Don’t Send or Buy Bitcoin From Stranger Accounts
It is extremely common for scammers to create fake accounts that pose as popular businesses or cryptocurrency exchanges and try to get their victims to send them money.
Similarly, many scammers pretend to represent certain cryptocurrencies or “investment advisors” or “traders” and ask people to send them money for various reasons.
The most common reason scammers ask for money from their victims is to “verify” their accounts so they can withdraw the money from the exchanges. You should never send any money to an online account that you don’t trust.
3.Be Careful With Exchanges and Online Wallets
There are many cryptocurrency exchanges where you can buy and sell different currencies. You can also store your cryptocurrencies in online wallets and software wallets.
Exchanges and wallets are great places to buy, sell or store your cryptocurrencies — but you have to be careful not to fall for scams. In many cases, scammers set up fake exchange websites that look like real exchanges. Then they get people to send them money, claiming that it’s for verification purposes.
4.Double Check Any unfamiliar URLs, or Email Addresses
Scammers often set up fake websites that are designed to look like real cryptocurrency exchange websites. They also create fake email addresses that spoof the real people behind the exchanges.
If you are trying to log into your exchange account, make sure the URL is correct. If you receive an email from your exchange or wallet, make sure that the email address is correct as well.
If you notice any discrepancies or something seems “off,” don’t click on the links or open the attachments.
5.Be Wary of Any “Guaranteed” Investment Opportunity
One of the most common cryptocurrency scams is the “guaranteed” investment opportunity. scammers promise that investors will receive a high level of return for a very small amount of money.
This is a red flag. No legitimate investment offers guaranteed high returns without some sort of risk. If an investment opportunity sounds too good to be true, stay away from it.
6.Don’t Fall For Ads That Say You Can Make Money With Crypto Investments
Many cryptocurrency scammers also use online ads to get investors to send them money. As we mentioned above, no legitimate investment offers guaranteed high returns.
So if you see an ad that guarantees this, stay away. Most cryptocurrency scammers use fake ads on social media sites like Facebook and Instagram. Be sure to know what the ads on your feed are and don’t click on anything that seems “off” or suspicious.
The Bottom Line
Cryptocurrencies are a great way to diversify your investment portfolio and try some new types of investments. But they also open you up to a whole new universe of scams and fake investment opportunities.
To avoid cryptocurrency scams, make sure you know what you’re investing in, how the investment works and who is offering it. If something seems too good to be true, it probably is.
Author: Written by Mazino Oyolo
Mazino Oyolo is the Content Manager at Thequickweb.com. He is a Blogger, Freelance Writer, and Internet Marketer.
