Here are a few strategies for avoiding cryptocurrency scams
The ingenuity of fraudsters attempting to prey on naive cryptocurrency traders and investors has increased along with the popularity of cryptocurrencies worldwide. But even if you’ve been using cryptocurrency for a while, don’t assume you’re immune from falling for dubious tactics.
Keeping up with the most recent information on cryptocurrency theft and fraud is challenging. Scams using cryptocurrency are getting increasingly complex, but there are methods to protect yourself. Here are eight valuable precautions you may take to guard against cryptocurrency fraud.
1. Never divulge the seed phrase of your cryptocurrency wallet, participate in an investment opportunity, or “restore” or “load” your account if asked. All of these are scams designed to steal your wealth. Don’t be fooled by it! Never divulge your private keys or seed phrase to anybody. Additionally, store your seed phrase in a secure location.
2. You should conduct your study if you are new to cryptocurrency or need clarification on what makes it unique. When running an online search, use the terms “review,” “scam,” or “complaint” in addition to the company name and cryptocurrency name. Don’t just scan the information; pay close attention to the outcomes. Phony profiles might have written online reviews. Before you put any money in danger, always do your own research (DYOR).
3. Avoid urgent demands. Scammers try to exert intense pressure on you to receive your money swiftly. For instance, if you respond immediately, they could provide discounts or incentives. Or they can pose as a buddy for money provided as cryptocurrency. Be on the lookout for pushy “Invest now!” sales pitches. Most likely, it’s a “pump and dump” con. Requests for immediate payment are a serious red flag. Simply delete the emails and ignore them if you get requests of this nature.
4. Scammers find that using social media to reach individuals is the most lucrative strategy. Cryptocurrency fraudsters frequently advertise their schemes via social networking applications like Twitter or chat apps like Telegram and Discord. They could assert that influential people, famous people, or investors support, encourage, or invest in their ventures. Photos or screenshots may be included in posts. But everything here is a falsehood and a phony. Never trust the hype. Be cautious and DYOR when…not if…you see the aggressive advertising of a new coin or other cryptocurrency ventures on social media. Watch wary if someone tries to start a relationship or romance with you right away after they emerge on your social network! Watch out for romance fraud.
5. Your random direct message (“DM”) from a stranger seeking to sell you a cryptocurrency investment “opportunity” is a fraud. Never send anybody who contacts you without your permission any cryptocurrency or personal information. Be wary even if you know the individual and it’s not a stranger. Either a con artist has duped that person and is now attempting to get you to take part, OR their phone, email, or social media account has been compromised, and the hacker is using your friend’s identity to trick you.
6. Always check the website’s address (“URL”) before inputting any information while visiting a crypto-related website. Get a cryptocurrency’s website URL if you need to become more familiar with it from a reliable source, such as the coin’s official Twitter account. Additionally, you may utilize well-known cryptocurrency price monitoring websites like CoinMarketCap or CoinGecko. Find the URL to the cryptocurrency’s official website by searching for it specifically. Check the spelling of any links in ANY message you get, whether by email, text, chat, or DM, before you click! Additionally, beware of URL redirection, which quietly sends you to a different website with a similar layout.
7. Only download crypto-related mobile apps from recognized “app stores” or legitimate distribution channels. This would be the Apple App Store for iOS devices. This would be the Google Play Store for Android smartphones. You can install a fraudulent mobile wallet that you downloaded. Any cryptocurrency you deposit into this wallet will be instantly moved to a wallet that is unquestionably not yours
