Scams in the cryptocurrency world and how to avoid them
Due to the increase in digital currency investments, cryptocurrency scams are also on the rise. Even though blockchain technology powers and protects many cryptocurrencies, scams still happen. Scammers hijack accounts and drain digital wallets.
The interesting truth is that cryptocurrencies are not regulated by the government and transactions are irreversible. This means that when you send digital currencies to a third party, you cannot reverse or reverse the payment. It will be painful to lose your money in the hands of crooks.
So how do you keep crooks at bay? Here you will learn about common crypto scams and how to avoid them.
Investment and business opportunity scams
Some scammers will make you unsolicited offers. They will claim to help you grow your money in exchange for your cryptocurrencies. They will encourage you to get more people to invest with them. But their main goal is to get a constant flow of people investing to make money.
How to avoid investment scams?
- Beware of sites or companies promising unrealistic investment opportunities
- Do a thorough research of a business before investing
- Do not send your cryptocurrencies to an untrusted third party
Identity theft scams
Cybercriminals can pretend to be a trusted source and trick you into making a digital currency transaction. They can pretend to be credit card providers, banks, or celebrities. They will contact you via email and ask you to complete the payment using the cryptocurrency.
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When you receive such payment request emails, beware. Remember, we said earlier that the government does not regulate cryptocurrency and that few companies accept it as a legitimate payment method.
As a security measure, make sure a website’s security is verified before entering into transactions.
Common tactics of a crook
This is what most crooks do. They go:
- Guarantee that you will earn money fast
- Promise big returns in a short time
- Promise free money in cash or digital currency
At the end of the line
Scammers are getting smarter every day. Therefore, do thorough research, talk to experts, and contact people with experience in the crypto world before making an investment. When you do this and follow the tips above, crooks won’t have a chance to steal from you.