Many people are ready to do anything to get rich quick, even if it means having to initiate a crypto scam. Unfortunately, as Cryptocurrency continues to gain wide adoption around the globe, they have also become a tool used by scammers to make quick profits by exploiting individuals’ pockets. As a result, Crypto scams are on the rise, and many fall victim to them. While crypto has many benefits, various scams exist in the space. With just a few clicks, crypto investors can lose their life savings to scammers if they don’t have ideas on how to avoid a crypto scam.
Don’t get duped by crypto scammers. This article will provide you with ways to avoid crypto scams.
Generally, scams are likely to be expected everywhere money is involved. Crypto is a rich and lucrative field for investors. Hence, scammers are not left in the dark as they utilize this field to exploit naive investors or beginners. Unfortunately, the experts fall victim too.
Cryptocurrency is complicated and confusing, especially for first-time users. If they don’t understand the profound concept of what crypto is all about, it makes them an ideal target for scammers. As the price of crypto increases, the rate of crypto scamming advances. Dozens of crypto scams are evolving, making many people fall victim to these vicious acts. But, there are some things which you can do to avoid crypto scams.
10 Ways to Avoid Crypto Scams
Do Your Own Research (DYOR)
DYOR is a term used commonly by crypto enthusiasts or investors. In the crypto space, many scam projects come with many opportunities, use cases and promising returns for investors but end up wrecking their projects. Therefore, conducting your research before investing your money in any digital currency is wise. In Nigeria, when an update is circulated to trade a crypto coin, the abbreviation, DYOR, is always added as a form of disclaimer.
As much as doing your research is promising, verify if a particular currency is worth investing in. It is also an excellent way to determine if it’s one of the crypto scams to avoid. Many times, when an investment sounds too good to be true, it’s possibly a scam. However, before investing in any projects, research the company website and check their social media platforms; you can also get reviews from other investors. Also, it might be hard to overlook advice from top crypto influencers online, but you should as well do your research before making any investment decisions to avoid crypto scams.
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Secure your crypto wallet
You must have heard stories of people who couldn’t access their Bitcoin because they could not secure their wallets. One can fall victim to a crypto scam once their data is shared with anybody, thereby losing their assets if the person is a scammer. To secure your wallet, never disclose your credentials, password or private keys to anyone. Instead, keep it safe to yourself only or store it somewhere safe offline.
Don’t trust anyone
As Crypto is a hot new thing, some individuals want to make money from the space by any means necessary. Do not trust messages or emails so fast, even if it appears from an official site or public figures. Be extremely cautious with anyone who reaches out to you to offer a crypto investment opportunity. The scheme could be a way to make you throw your money into a scam project. Verify before interacting with anyone or crypto company that reaches you.
Avoid putting all your funds in one wallet
In recent days, no one has been immune from hacking as there has been lots of news about hackers running off with people’s assets, even from big companies. Hackers can hack anyone or anything, including digital wallets and even exchanges. Therefore, avoid saving all your funds in one wallet. An excellent preventive measure is to diversify your funds or assets to other crypto wallets to cut your losses in the case of any unforeseen circumstances.
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Keep your seed phrase safe
Ever heard the term “Not your Seed phrase, not your money”? Your seed phrase is required to access your wallet. Therefore, keeping your unique seed phrase safe is reasonable as you only get one of it. To lose your seed phrase is the same as losing your crypto assets. You can write down the phrases or the number of characters and keep it in a safe spot so no one can access it.
Always double-check URLs
When you visit crypto sites, keep a close eye on the URL, as most scammers duplicate the URL of legitimate sites. Also, always double-check if the site you visit is secure. For example, you can check if the little lock symbol is next to the URL. Identifying fake URLs is a perfect way to avoid crypto scams.
Use 2-Factor authentication
2FA is a security process requiring multiple verifications or authentication methods from users. This is implemented to protect users’ credentials and their access to resources. To manage your wallets securely, always enable 2-factor authentication to keep hackers from attempting to access your crypto wallet.
Read Also: Why Nigerians Should Invest in Cryptocurrency now
Always stick with popular exchanges
To trade your cryptocurrency safely, always go for a reputable exchange. Keep an eye out for fake ones, as many fake exchanges sometimes seem to pose as reputable exchanges, but they are bent on stripping users of their hard-earned money. Some scammers create a fake exchange or wallet apps, pressuring users to create an account and deposit funds, and sometimes they give out promotional offers. But once your money is on the platform, they might charge you high fees to withdraw your funds, steal your critical account details, or even restrict you from withdrawing.
You can download these apps from legitimate app stores like Google Play which makes them seem official. Don’t randomly choose a wallet from the app store to avoid this sort of crypto scam. It’s nice to thoroughly research the exchanges and get reliable reviews before downloading and creating an account to avoid crypto scams.
Thoroughly research ICO before buying
ICO, also known as an initial coin offering, is the best time to purchase a particular token at the ground floor or low price as it could be the next big thing.
Scammers pretend to create a promising crypto token backed up with good marketing and little hype, promising investors significant returns. But, once they collect enough money, they vanish with investors’ funds. With many new investors having little or no knowledge of how the crypto industry works, they fall victim to this crypto scam. To avoid investing in fake ICOs, thoroughly research any ICO before putting your money in it. Research the whitepaper, its use case, the tech behind it, and the team behind the project, as it would help you spot and avoid crypto scams.
If you have previously fallen victim to a crypto scam, you know the chances of recovering the asset are very low. So you need to report the scam to the official authorities if you spot a scam or have fallen victim. This helps prevent other persons from falling victim and prevents you from further crypto scams.
Many individuals are curious about digital currency and its innovation as there are many opportunities in the Crypto space. It would be a great benefit to investors, especially beginners, to understand all about digital currency to avoid falling victim to these crypto scams. It helps you know what you need to do and things you need to avoid before investing your money in any crypto investment.
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- Ahuzi Vincentia is a Cryptocurrency content creator and ardent writer. She is passionate about research and self-growth.