5 tips to avoid crypto scams

[ad_1]

The popularity of cryptocurrency has exploded over the past twelve months. With this popularity, more people fall victim to scams.

Here are five tips to help you avoid getting mowed.

Use a legitimate crypto exchange

This has probably been the biggest stumbling block for budding investors lately. This is why it is imperative that newcomers to the market conduct extensive research into the cryptocurrency exchange platforms they use.

Some of the most trusted and popular crypto exchanges include Binance, Tether, and eToro.

The latter part of 2021 saw two high-profile cases of crypto exchanges either liquidated or shut down as a result of malpractice cases.

The past year has also seen the emergence of regulatory pressures in various countries around the world. In Australia, in particular, there is currently a trend to require crypto exchanges to be licensed, with these changes due to be implemented this year.

Copyright © 2022 Kalkine Media®

Cold calls

Another common way that consumers have been duped has been through cold-calling scammers promising wealth if their victims invest in a particular crypto project.

These shady trades are often quite sophisticated, with perpetrators often choosing real crypto but creating a fake duplicate website that victims can browse and potentially invest the money.

Whether it’s a cold call or not, one of the main things to watch out for is the URL and whether or not it has a lock icon next to it. If there is no lock icon next to the website URL, you are strongly advised to close the page as soon as possible.

E-mails

This is the way that most people are used to receiving fraudulent bait. Always beware of promising emails, especially if the source is unknown.

Fake apps

One of the defining characteristics of cryptocurrency is that it is completely web-based. However, this can also be to its detriment, as bogus apps can be created by crooks to trick unsuspecting users into injecting money into them.

There are many good crypto apps out there, but you should always look at the creators of said app to see if they are well known in the crypto community. If you have doubts about the legitimacy of an application, it is better to leave it a large place.

Social media deception

We’ve lived with social media long enough to know not to trust everything in it. Information or offers relating to cryptocurrency should not be an exception.

Again, these scams can be quite sophisticated and the victims can be drawn to people responding positively to the claims made. However, these responses are often robots.

Also be aware that fake accounts on Twitter, Facebook, TikTok, and even your own private text messages are commonplace and if you don’t know the source, it’s best to ignore it.

[ad_2]