The craze about cryptocurrency is rapidly increasing as it continues to attract the attention of many global investors. However, it has also become a target for fraudsters searching for ways to make easy money by exploiting people who would seize every opportunity to get rich quickly. For this reason, many aspiring investors become victims of crypto-scams.
Fortunately, there are ways to avoid cryptocurrency scams. One of these is to confirm whether or not a crypto company has a whitepaper containing data about formulas, diagrams, and statistics. The crypto whitepaper aims to convince people to invest in a specific crypto asset. For any crypto startup, having a whitepaper is considered legitimate and professional.
To learn more about how to spot and avoid crypto scams, visit similar websites like Swyftx (this info at Swyftx) and keep the following tips in mind to protect yourself:
1. Do Your Due Diligence
Sports figures and celebrities often receive sizable payments to promote a specific crypto asset. Never let their influence sway you without doing your homework. Like every type of investment, trusting so-called experts can be risky, especially in the crypto market.
Instead, search for unbiased information and legit research outlets providing reliable risk and reward guidance. It may also come in handy to stay updated with the latest crypto trends to know about the newest scams and how to avoid them.
Research is also essential when looking for a crypto exchange platform. Before you buy or start investing in Bitcoin and other crypto assets, check the reviews of a crypto exchange platform and compare it to other platforms. This way, you’ll be able to weigh the pros and cons, allowing you to determine which can benefit you most as a crypto investor.
2. Know When To Consider A Crypto Wallet
If you’re a small-scale investor with a few hundred dollars worth of cryptocurrency assets, it’s okay to keep them on a mainstream exchange platform. However, if you have thousands of dollars worth of assets, it makes sense to use a crypto wallet for better investment protection.
There are two kinds of crypto wallets: cold wallets and hot wallets. Cold wallets are like offline storage and are more secure. However, once you lose or forget your password, you won’t be able to access your money.
On the other hand, hot wallets are stored or hosted online. They are also secure but more susceptible to hacking than cold wallets. So, it’s an excellent idea to have both crypto wallets when managing your digital assets.
3. Watch Out For Phishing Attacks
Another common way scammers seize your crypto assets is through social engineering fraud. When it comes to phishing, scammers target investors with online wallets. Sometimes, fraudsters send emails with links to unreliable websites where they’ll get your confidential information. Once you click on such links, the hackers can access your crypto assets quickly.
To avoid blockchain phishing scams, check how legitimate a link is. Other phishing scammers will try to change some characters of a web address only to make it look reliable. So, before you click a link, check every character included in the web address.
4. Use Multi-Factor Authentication
If you’re using a crypto wallet, never forget about activating the multi-factor authentication factor to keep the scammers away. Although it’s never a sure-fire way to avoid scams, it provides you with a chance to reduce the possible risks of scams. Plus, it makes stealing your confidential information harder for average criminals.
Most crypto wallets or exchange platforms have security features like multi-factor authentication. To reap its benefits, make it a habit to check your account settings and update your security information regularly.
5. Be Careful Of Social Media Ads
Some crypto scammers use social media platforms to look for victims and promote their deceitful schemes. Typically, they use legit-looking profiles to create a sense of credibility and may even promise free money. Once you see such crypto opportunities on social media, avoid them and look for a more reliable social media account that discusses crypto facts only.
6. Avoid Get-Rich-Quick Schemes
Cryptocurrency assets like Bitcoin are known for being highly volatile. Investing in these assets can be risky, and you may lose all your investment if you’re not careful with your methods. Therefore, anyone promising guaranteed returns in exchange for your initial investment is lying to you. Remember that anything too good to be true can be a fraud or scam. So, you might want to avoid such schemes to stay protected from possible fraud.
As more criminals have learned ways to exploit vulnerabilities among consumers investing in the crypto market, it’s crucial to take precautionary steps to protect yourself against scams. By taking advantage of your common sense and the tips above, you can avoid crypto scams successfully and keep your investments safe from fraudsters.