Cryptocurrencies have become so popular that they are considered a legitimate currency now, and some even claim that Bitcoin can replace fiat money in the future. Bitcoin, Ethereum, and other cryptos are the new buzzwords, and people are looking to invest in them.
However, it’s important to understand that cryptocurrencies are still relatively new and in the early period of their development. Therefore, crypto investors are easy prey for scammers. Since they are decentralized, there is no central authority or bank that can control the currency. It makes them an even more attractive option for scammers looking for easy money. Hence, scammers and con artists have set their sights on cryptocurrency.
Cryptocurrency scams are an unfortunate fact. There have been many cryptocurrency scams over the past few years, and most investors have lost their hard-earned money. They’re so rampant many people don’t even realize they’re being scammed. But it doesn’t have to be this way!
You can avoid these crypto scams by taking a few tips from this article. Here are five expert tips that help you avoid scams in the cryptocurrency market.
5 Ways to Avoid Scams in The Cryptocurrency Market
Do Your Homework on Who You Are Dealing With
We all track where billionaires and influential figures are investing in cryptocurrency. It’s tempting to follow their tips blindly. However, it should not be like this when it is about your hard-earned money. Researching every fact yourself before investing your money is a must.
Even not all facts on the web are correct, so do not put your money in any currency blindly believing them. If an investment or scheme sounds too good to be true, beware, it is probably a trap for you.
Always verify the identity of any person or website offering cryptocurrency trading advice before making any trades or sending any funds. You can do this by searching online for their name and finding out what media outlets they’re associated with. Also, look up their website, social media accounts, and other public records. Make sure that they don’t have any negative reviews on the forums.
Secure Your Crypto Wallet
You may have heard stories of losing control of virtual crypto wallets.
Your crypto wallet is a private account that holds your cryptocurrency assets. The account holders can create a private key to secure this crypto wallet.
This private key is a digital code that helps authorize transactions when using a digital currency. The safety of this key is crucial because if someone gets hold of it, they could steal all of your crypto assets without you even knowing it!
So do not share your private key with anyone for any reason.
We recommend storing such critical information on the hard drive. But do not lose the password. Otherwise, you will not be able to access your wallet.
Check for the Secure URL
The URL of the website is one of the most vital pieces of information you need to check before making a crypto transaction. Scammers will often create fake URLs to trick you into clicking on them.
Look for a small lock icon and HTTPS before the URL. It signifies that the connection between the URL and browser is encrypted, and no one can eavesdrop or intercept it. It ensures you’re connecting securely every time you visit the site.
Also, check for any warnings or alerts the browser creates that may appear when connecting to questionable sites.
Ensure your device has active anti-virus software to avoid phishing scams and block malicious websites or URLs.
Avoid Dealing When Asked for an Up-Front Fee
Reject crypto offers that require an up-front fee, especially if the seller is asking for a large sum of money. Scam websites generally ask for huge payments in fiat currency (like dollars). Do not fall prey to it. Such offers are scams in the crypto world.
Use Two-Factor Authentication
Two-factor authentication (2FA) is a security protocol that requires two forms of identification to log on to a service. The first is common authentication, like your password and username combination. The second is an OTP on a mobile number or email address.
It serves as an additional layer of protection against attacks on your crypto accounts. For example, if someone manages to decode your pin. With 2FA enabled for your account, the system will ask for your password and OTP sent via text message or email for access.
The Final Words
With the price of Bitcoin and other major cryptocurrencies reaching new highs in recent years, more people are exploring this new digital asset class. However, as more people venture into the world of cryptocurrency by investing in digital assets, many others are joining them without fully understanding how it works. This lack of knowledge has made it difficult for novice investors to avoid common mistakes, which often lead them to be scammed by offshore cryptocurrency schemes.
If you are taking your first steps into the world of cryptocurrency, you need to take some precautions. The above points will help keep you safe from scams and understand how the process works.
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