In 2021, over 46,000 people reported becoming involved in cryptocurrency scams, according to the Federal Trade Commission. These scams led to a collective $1 billion in financial loss. In this article, I’ll give five tips to avoid crypto scams.
Sadly, scams are not rare in the crypto world, and there have been quite a few scams over the years. So what can you do to avoid them? Let’s take a look.
Five Ways To Avoid Cryptocurrency Scams
1. Do Your Own Research:
The popular crypto terminology DYOR is not for nothing. The importance of doing your own research cannot be overemphasised. Sometimes, relying on what you hear and see from people based on a crypto coin or project is really bad for you.
Due to FOMO, you might hop on a project without extensive investigation just so you won’t be left behind.
You need to analyse the project you want to hop on, see if it is suitable for you, research the market to see if it is the right time and check out the project’s history and things connected to it.
You do not need to hop on every project that comes out on a whim because you want to be one of the first on it. Doing this without proper research will cost you.
2. Be Careful About Who You Trust:
Although it may sound unpleasant, it is not ideal to trust everyone you come across in the crypto world. People have lost millions of dollars worth of crypto because they trusted the wrong person.
People might come to you with stories of investments and how they’ll turn your one dollar into thousands and even millions of dollars. It might just end up being a Ponzi scheme.
There is a lot of crypto advice available everywhere on the internet, even from influential people and people who claim to be experts. Along with this advice, they might devise a solution, luring you into what might cost you a lot.
3. Ensure Two-Factor Authentication Is Available:
There have been numerous cases of crypto exchanges getting hacked and millions of crypto being stolen. Yes, it’s terrible. When choosing a suitable crypto trading platform, always ensure they have two-factor authentication.
2FA is an added security to protect your funds from hackers.
Platforms like Breet have two-factor authentication to safeguard users’ funds so they can risk-free sell their Bitcoin to Nigeria and Ghana.
4. Do Not Share Your Crypto Passwords And Private Keys:
This is one of your worst mistakes as a crypto investor. It’s like you’re basically giving your crypto away for free. Private keys and passwords should be kept safe, and a secret and should not be stored online.
5. Double-Check URLs:
There are lots of crypto websites out there which are actually fake pages and scams. Many phishing scammers model the URL of genuine websites and change the letters or numbers.
Always ensure the site is secure by looking out for the little lock symbol next to the URL on a website. You should have antivirus software, and it should be turned on constantly.
Conclusion: Five Tips To Avoid Crypto Scams
While there are many upcoming ways to eliminate these crypto scammers once and for all, there is no guarantee that they will be gone once and for all as new scams keep popping up every day.
With these tips, you can keep your funds and crypto assets safe and enjoy your trading and investment journey.