How Can You Avoid Common Cryptocurrency Scams?

It doesn’t take long for you to recognize the risk involved in transactions relating to cryptocurrencies as you become part of it. The risk of this new-age digital monitoring mechanism is not about the volatility of the market.

Scams have become very common in the online space, and cryptocurrency exchanges are not far from it. You should be aware of the possibilities of losing your investments in cryptocurrency as you invest in different exchange platforms and startups.

Experts opine that you should ensure that cryptocurrency startups and companies get powered by blockchain during your investments. It helps you to track the detailed transaction data of these investments. You can also verify whether they have businesses that can solve real issues.

Such entities that allow the trade of cryptocurrencies should specify their ICO and digital currency liquidity rules. If some of the characteristics are lacking in the startup you are trying to invest, think thoroughly. This article takes a look at the prevalent scams and the ways you can be a victim of the same.

Pretentious Websites

It often happens that you may be following a solid lead from a person with a lot of expertise, you may still be a victim by accidentally visiting a fake site. Numerous websites have come up that resemble the original and valid companies.

You should reconsider delving deeper into the website if you see the small lock icon and the HTTPS are missing in the site address. Both of these features found near the URL bar indicate security.

It can also happen that the site you are visiting is similar to the original, barring the payment platform. For example, if you visit a website that looks legitimate for a company that you know of, you may mistakenly visit a fake site. The fraudsters use zero in place of the letter O and create a fake URL. Such a platform will not take you to the desired cryptocurrency investment page, of which you have gathered information.

You can avoid such imposter websites by choosing to type the exact URL in the browser. You should double-check the information before going ahead.

Nowadays, there are crypto recovery companies that help to get back the money from the fraudsters. Such entities help put up a case by gathering the relevant information and following up on the case dates. They have experience in dealing with scammers and money recovery from cryptocurrency scams.

Fake Apps on Mobiles

Scammers often use fake apps, available for download from Apple App Store and the Google play store. However, stakeholders can identify such apps quickly and take steps to remove them but by that time they impact many bottom lines. Bitcoin News reports thousands of people have subscribed to such fake cryptocurrency apps already.

While the risk of such fraud is higher in android, every investor should be aware of the possibility. You should check for obvious misspellings in the name of the app. Does the branding have an incorrect logo or change of colors? You should take note of these while downloading the app. 

Mail Scammers

When you receive an email from a legitimate cryptocurrency company, you should be careful before deciding to invest. Does the email look similar to the original, and is the branding identical? Can you verify the legitimacy of the email address?

It is the main reason for you to choose a company that has people working in it to have the ability to substantiate any information. You can easily ask from a person working in the company and never fall prey to any click baits.

You may have seen the initial coin offerings often lead to a loss of substantial funds. You should avoid falling for such fake email and website offers by scammers. Invest your time in checking all the details.

Social Media

You may have been mistakenly following an imposter or a bot who can give you malicious offers relating to cryptocurrencies. You should not trust any investment tips coming from popular social networking sites like Facebook or Twitter.

The chances of not getting back your money when pursuing such online platform leads are very high. You should be extra careful and not fall prey to such offers due to the higher participation of people in the comments section.

So as you can see, there are many unscrupulous means by which people are falling prey to cryptocurrency scams online. Reading and learning more about the various cryptocurrency companies can help you to protect your investment.

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