Worried about cryptocurrency scams? Here’s how you can avoid the risks

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On the blockchain, smart contracts are codes that execute a set of instructions

The rise of cryptocurrency has opened up the possibility for hackers to exploit blockchain loopholes and swindle millions of users around the world. If the online crypto industry is attracting new users at an unprecedented rate, the number of hacking incidents is expected to increase in the days and weeks to come, industry experts are warning. Some already estimate that more than $ 650 million was targeted in major cryptocurrency thefts, hacks and frauds between January and July of this year. Many more have not yet been reported for a variety of reasons, including a lack of adequate understanding of the technology.

Like any industry, cryptocurrency is also not immune to thefts and scams. However, experts recommend that investors fully understand the risks involved in trading these digital assets. The best a trader can do to protect their investments is to be aware of the potential pitfalls and common mistakes that others have made.

Here are a few tips :

1) do thorough research

Investors should always invest time in thoroughly researching crypto or any other digital asset in which they wish to invest. They can start with the official crypto project website. Discover its current founders, developers and funders. Find out where the project is available for purchase. These must give a first indication to determine whether the project is doubtful or not.

2) Impostor websites

Don’t fall prey to website impostors. There are a surprising number of impostor websites set up regularly that look like the official site. Amateur investors often fail to identify the fake from the real. If in doubt, ask those who have already been in the industry for some time. Beware of phishing emails.

3) fake mobile apps

Another border to protect is the downloading of crypto trading or exchange apps from verified sources. Scammers often deceive investors with bogus apps. While these apps are quickly identified and removed, that doesn’t mean bogus apps are going to be gone anytime soon. Look for obvious misspellings in the copy or in the name of the app. Consider whether the mark is fragile or has the wrong logo.

4) pay attention to smart contracts

On the blockchain, smart contracts are codes that execute a set of instructions. Although they are technical, they generally help to understand the overall potential of a crypto project. If there is a problem with the smart contract, there might be some weaknesses within the project.

5) keep your wallet safe

Finally, protect your wallet wisely. All wallets carry two keys – private and public. Make sure that the private key is not disclosed to the public under any circumstances. Despite this, wallets come with risk and cold wallets are generally the safest option for storing private keys.

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