Tips to Stay Away from Scams in the Vast Crypto Market
Cryptocurrencies – the name you have been hearing and seeing all over the internet. Cryptocurrencies like pi cryptocurrency and many others have made an enormous fan base, and their popularity has reached dizzying heights now. No one in the world isn’t aware of its popularity and doesn’t want to jump on the bandwagon of crypto trading. But like every coin has two faces, crypto trading is no exception. Like any other investment, there are certain risks involved in the crypto investment.
As the popularity of virtual currency is at an all-time high, crypto scams are also widespread. Some common crypto scams are prevalent and are listed below:
One of the most common kinds of scams is a giveaway scam that uses free prizes and giveaways. Winning a reward is loved by everyone, and this is what scammers take advantage of. Such scams often try to get your information in exchange for a reward and take place through social media.
- Fake tech support
These scams are easy to catch their prey. The scammers impersonate a particular company’s social media or support phone lines that let you believe in their legitimacy. Then, they try their best to get your passwords and security codes.
- Fishing scams
This scam includes a fake website set up by scammers to trick you into exposing sensitive information. The sites seem legitimate and often send an email to you claiming to be from crypto exchanges.
Other scamming methods on the list are fraudulent ICOs, shady exchanges, fake wallets, pump and dump groups, etc.
Scams are common in any industry and have been there for now. There have been major attempts at cryptocurrency threats between January and July this year. However, there are ways you can assure that you wouldn’t get scammed.
Tips to avoid crypto investments from scams
What are the tips for getting rid of the crypto scam, you might be wondering? Well, wonder no more because here they are –
- Research extensively
You might get influenced by the advice given by crypto billionaires and influencers on the internet, but it is always good to do thorough research before investing in any cryptocurrency. Know the currency better – its creators, founders, and current backers, then analyze and estimate the amount of risk involved.
- Protecting crypto wallet
Protecting the crypto wallet must be your priority, and a multi-factor authentication process can do it. There are circumstances when crypto investors lose from their crypto wallets, and you don’t want to be one of them.
- Be attentive to smart contracts
Smart contracts help you understand the overall potential of the crypto market. Make sure you face no issues with the contracts.
- Fake mobile apps
Only download authorized and popular cryptocurrency trading platforms. You must learn to recognize fake mobile apps and avoid them to the maximum extent to minimize risks.
- Reject fee offers
There are some crypto schemes requiring fees. It would help if you rejected such offers as they are either scams or unstable.
Keeping the mentioned points in mind, you can make safe crypto investments.