The popularity of cryptocurrency has exploded in the past twelve months. With that popularity has come a greater number of people falling victim to scams.
Here are five tips to help you to avoid being fleeced.
Use a Legit Crypto Exchange
This has probably been the biggest pitfall for aspiring investors in recent times. This is why it’s imperative that newcomers to the market do some thorough research into which crypto exchange platforms they use.
Some of the most trusted and most popular crypto exchanges include Binance, Tether and eToro.
The latter part of 2021 saw two high profile cases of crypto exchanges being either liquidated or closed down following instances of malpractice.
Last year also saw the emergence of regulatory pressures in various countries around the world. In Australia, in particular, there’s currently a move towards requiring crypto exchanges to be licensed with these changes set to be implemented this year.
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Another common way in which consumers have been duped has been through cold calling scammers promising riches if their victims invest in a particular crypto project.
These dodgy operations are often quite sophisticated with perpetrators often choosing a real crypto but creating a duplicate, fake website for victims to peruse and eventually sink money into.
Whether cold called or not, one of the main things to look out for is the URL address and whether or not it has a lock icon next to it. If there is no lock icon beside the website URL, it’s strongly advised that you close the page as soon as you possibly can.
This is the medium most people are accustomed to getting scam bait. Always be suspicious of any email promising riches, particularly if the source is unknown.
One of the defining characteristics of cryptocurrency is that it’s entirely web based. This can also be to its detriment, however, as fake applications can be made by scammers to dupe unsuspecting users into sinking money into it.
There are lots of good crypto apps out there, but you should always look at the creators of said app to see if they’re well known in the crypto community. If you’re in doubt about the legitimacy of an app, it’s best to give it a wide berth.
Social Media Deception
We’ve lived long enough with social media to know that not everything on there should be trusted. Information or offers pertaining to cryptocurrency should be no exception.
Again, these scams can be fairly sophisticated and victims can be lured in through people responding positively to claims made. However, these responses are often bots.
Also be aware that fake accounts on Twitter, Facebook, TikTok and even your own private text messages are rampant and if you don’t know the source, it’s best to ignore.