Cryptocurrency Scams on the Rise: Here’s How to Stay Safe | Tech News
New Delhi: The advent of cryptocurrencies has given hackers the opportunity to take advantage of loopholes in the blockchain and defraud millions of people around the world. If the online crypto sector continues to attract new users at an unprecedented rate, the number of hacking incidents will increase in the days and weeks to come. Between January and July 2021, it is estimated that cryptocurrency thefts, hacks and fraud cost over $650 million. Many more are yet to be reported due to various factors, including a lack of sufficient technological understanding.
Cryptocurrency, like any other industry, is susceptible to fraud and theft. On the other hand, advise investors to fully understand the risks associated with trading digital assets. The best thing a trader can do to protect their capital is to be aware of the potential dangers and typical mistakes made by others.
Here are a few tips :
1) Do extensive research
Whenever possible, investors should spend time thoroughly investigating the cryptocurrency or other digital asset they wish to invest in. They can start by visiting the official website of the cryptocurrency initiative. Learn about the company’s founders, developers, and current backers. Find out where you can buy the project. These should provide a first idea of whether or not the project is viable.
2) Imposter websites
Don’t be fooled by fake websites. A surprising number of impostor websites that look like the official website are created on a regular basis. Amateur investors often fail to distinguish between legitimate and bogus investments. If you’re not sure, ask people who have worked in the industry for a while. Phishing emails should be avoided at all costs.
3) Fake mobile apps
Another line of defense is to only download crypto trading or exchange apps from trusted sites. Scammers frequently use fake apps to trick investors. Despite the fact that fake apps are quickly recognized and banned, they are not going away anytime soon. Look for glaring misspellings in the app’s copy or name. Determine if the brand image is weak or if the logo is wrong.
4) Pay attention to smart contracts
Smart contracts are codes on the blockchain that execute a set of instructions. Although they are technical, they generally help to understand the overall potential of a crypto project. There could be flaws in the project if there is a problem with the smart contract.
5) Keep your wallet safe
Finally, take care of your wallet. Each wallet has two keys: a private key and a public key. Under no circumstances should the private key be shared with the public. Wallets, however, come with risks, and cold wallets are usually the safest way to store private keys.