Cryptocurrency has gained global popularity and has made itself an integral part of the economy. It does affect people from all walks of life — middle-class people and wealthy ones. However, it is not without some issues. It is prone to undesirable circumstances, particularly scams. If you are a newbie to cryptocurrency, consider this article a helpful reference to avoid scams as we will discuss five of the most prominent cryptocurrency scams and tips on avoiding them.
1. Using an illegitimate crypto exchange platform
Before you invest in cryptocurrency, you should also take the time to do your research before putting actual money into it. You should only use a trusted platform when you’re buying and selling cryptocurrency, Not every platform provides global access, though, so it’s also best to research what’s available in your country.
Let’s say you live in Australia. You should explore this list of truthworthy exchanges in Australia, as they might be different from those in the US and Asia since not all platforms may be able to provide the same kind of customer support and features.
2. Fake online apps
You might need apps to enter cryptocurrency trading, and even Bitcoin news has reported that there were many attempts to lure people by creating fake apps. The way to verify this is by looking at the app’s name, color, logo, and other physical properties that look suspicious. When in doubt, it’s very wise to trust instincts.
3. Social media updates
Don’t easily trust entities that give offers via Facebook, Twitter, and other prominent social media accounts. Scammers have long seen social media as a potential platform to deceive people. Never be lured then, especially in tempting campaigns that promise to give impossible returns. Also, don’t be fooled even when many people respond to their offers. You’re not sure if they are bots or not, so better be safe than sorry. Fake accounts are also rampant on social media, and there is little to no way that you can verify these accounts unless they’re really obvious.
Scammers can also lure people through emails. One way for you to avoid scams from these emails is to check if the logos and branding are similar. Pay attention to small details because that’s where most scammers don’t focus on. Try to see if there are any proofs of legitimacies. Beware of the links as well, as you might be a victim of phishing sites. If you’re not sure, it’s best to check the website of the company and see what their official email is.
5. Fake websites
Since cryptocurrency mainly operates on the world wide web, one of your enemies also lies in it. That is why you should not open websites right away especially if it doesn’t show any sturdy security features. If you notice that there is no lock icon beside the website URL, that’s a major red flag. Close it at once. Now, even if the website looks identical to you, you still need to be cautious because scammers have advanced their schemes by copying the URL to lure you into clicking on it. For instance, make sure that you see the letter “o” instead of the digit “0.”
To avoid scams, always be very keen on details, especially if you invest in cryptocurrency as it involves money. Scammers can be lurking around the internet 24/7, so you might as well be very cautious of your actions. Sometimes a simple click could be your total financial ruin. Thus, only invest in the most trusted, prominent and reasonable, and attainable returns so that your decision makings would be good for your finances.