How to Avoid Common Cryptocurrency Scams

  • November 5, 2021

With every new trend in the tech industry, there comes a wave of innovation. But there will also be an inevitable spike in new ways to hack and scam those who use the new piece of technology. The same is true for cryptocurrency, which has seen a massive spike in popularity in the last couple of years. Here are some ways to ensure you’re staying safe from possible scams while trading and buying crypto.

1. Fake Websites

Even if you’re the safest browser on earth and only take personal recommendations from friends or trusted acquaintances, you can always be at risk of clicking on an imposter website. Websites don’t have as many signs of potential scamming as a phone call would, thanks to CNAM. There are so many startup companies associated with cryptocurrency now that you do have to be careful where you’re going and sharing your information. Be careful, especially, of websites that redirect you for payment information. To find websites that you know and trust, type the URL yourself instead of clicking-through from links. It can be a bit of a pain to take all this trouble, but it’s worth it if it keeps you from being scammed. 

2. Imposter Accounts

Because cryptocurrency has become a massive trend and buzzword on social media, many fake accounts are being made to duplicate prominent people and businesses in the industry. Before following an account, take a look to make sure it’s really the person you want to follow. They should have a blue checkmark to signify that they’ve been validated by the platform. If you ever receive a direct message from an account with an offer or a request, you should assume it’s an imposter account. Remember, if something is too good to be true, it’s most likely a scam. In general, offers that come from social media are generally not trustworthy.

3. Scam Emails

With the barrage of emails that traders get every day regarding crypto updates or offers, it can be tough to weed out the scammers. If you get an email requesting that you click a link or send your information, take a second to google the company and find out if their contact info matches the email you’ve received. Never click on links if you can help it, and don’t hesitate to contact customer service if you have doubts about continuing the interaction. In a competitive industry like cryptocurrency, it’s easy for scammers to take advantage of people’s eagerness to stay ahead of the game. Instead, you should learn to slow down and see the signs of a potential scam.

4. Fake Apps

Many crypto investors choose to use apps to track their investment portfolios and to do trading. This has created a big window for scammers to create fake apps for stealing crypto. While these apps generally get taken down quickly, those who are always on the look for the next big app might be in danger of having their information stolen. Before downloading anything, look at the detailed information about the application. See if you can find any strange wording or misspelling. Look at the reviews to see if they seem fake or if anyone has raised a red flag. Lastly, you can google the app to see if anyone has reported it for possible scam activity.

5. Learn How to Recover

If you do fall victim to a scam, it’s not the end of the world. And it doesn’t have to mean the end of your days trading crypto. Instead, there are some ways to start recovering from the scam that you should be taking advantage of as soon as possible. Don’t hesitate to safeguard yourself against future scams and start rebuilding so you can get back into the game quickly. Part of the attraction of crypto is the potential for risk, and there truly can be no reward without some risk when it comes to innovation. 

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