How to Prevent Scams in the Crypto World
Cryptocurrency is gaining popularity as days go by and more and more people are eager to try investing in digital coins. It’s no secret that cryptocurrencies use a decentralized control mechanism known as a blockchain which publicly records the transactions in digital form. As you explore the world of cryptocurrency, you will soon find out that there are certain risks involved. Aside from the highly volatile market, various forms of scams are also inevitable.
If you are new in the cryptocurrency world, here are some of the most common scams and how you can avoid becoming a victim.
1 ) Impostor Websites or Celebrities
There are cryptocurrency experts that newbies look up to. These are the people who shared their cryptocurrency expertise on different social media platforms and with huge followers. While these people are legit, several sites will try to copy the original website or social media handles of these cryptocurrency gurus to deceive people to sign up, submit personal details, and deposit money. Even if the site looks identical to the one you think you're visiting, you may find yourself directed to another platform for payment. To avoid falling for this type of scam, double-check the URL and examine everything carefully before submitting any details.
2 ) Malware Scams and Viruses
Malware and viruses are a threat to potential crypto investors. Malware and viruses can easily gain access to the user’s account and take control of the account balance which leaves the victim with nothing. To avoid this scenario, always use two-factor authentication on all your currency transferring apps and carefully examine on what platform or website you are being directed at while you transact anything related to money transfer. Always update your antivirus and system firewall for added security.
3 ) Altcoin Pump and Dump
With so many cheap cryptocurrencies available in the market today, it’s easy to fall for a pump and dump scheme. Pump and dump schemes take advantage of people while making some big money for scammers.
The idea is that a person or group of people buy into a thinly traded asset such as a penny stock when its price is low. They can involve influential people who promote and encourage people to buy a certain digital coin to pump its value. Once the value goes up, the scammers sell their coins and take the profits, while everyone else loses their investment. Do not fall prey to promotional gimmicks by celebrities or other well-known personalities. Always do your own research before investing in anything.
4 ) NFT Scam
NFT or Non-Fungible Tokens are currently the biggest craze in the crypto market. NFTs can be associated with easily-reproducible items such as photos, videos, audio, and other types of digital files as unique items, and use blockchain technology to give the NFT public proof of ownership. These digital pieces do a back and forth between marketplaces, which serves as a playground for scammers. Artist and brand impersonations are some of the ways of being scammed in the NFT world. These scammers will sell a famous NFT at an extremely low price before they are reported. Before you knew it, the scammers were able to steal your money and are gone forever. Keep in mind to be extra careful when buying NFTs. Make sure the account is legit and verified. If the site looks doubtful, never provide your personal details. If you have a gut feeling that something is not right, don’t proceed with your purchase.Sign up for a FREE account now!