As the popularity of cryptocurrencies grows, crypto frauds are jumping into the ring as well. Finance frauds are anyway rampant in every corner of the sector, as you may have noticed if you follow global news. In the crypto space in particular, fake exchanges, faulty wallets, and even fake cryptocurrencies have lured inexperienced traders and investors in the past. Therefore, as a newcomer to the space, one of the most pressing questions you may have is this: how to avoid crypto scams?
These are several methods that you can use to stay safe from finance fraud related to cryptocurrencies. Let’s take a look at a list of tips to avoid crypto scams!
How to Avoid Crypto Scams?
Let’s find out some of the many ways you can protect yourself from crypto frauds and avoid crypto scams!
Keep Your Seed Phrase Safe
If you are a beginner in the crypto market, you might not have an idea about seed phrases. Seed phrase is a random arrangement of letters and numbers that is generated to provide access to your crypto wallet in case of any mishap. It can be considered as a master key to your wallet. You must ensure that you store your seed phrase safely and never share it with anyone else.
If you ever find yourself being asked for a seed phrase through calls, emails or any other method, make sure to block the account this request comes from and never actually share it.
Scammers may pose to “restore” or “load” your crypto wallet, but such acts are just to fool you into getting master access to your crypto wallet. Your crypto wallet is a safe place to store crypto, hence giving your seed phrase to anyone will only make you lose the access to your own wallet.
Don’t Fall for Promises of Instant Profit
You might have gotten emails or direct messages from unknown profiles stating that you can get rich instantly by investing in a certain crypto. These are almost always set ups for crypto frauds, that would relieve you of your funds and vanish overnight.
One of the best tips to avoid crypto scam is to do your own research. Whenever you learn of a cryptocurrency, exchange or any other related platform, go to the internet and search for its reviews. Take a look at the parent blockchain network, the projects undertaken by the blockchain and the historical performance of the cryptocurrency to assess its credibility, before you invest.
Beware of Social Media-Based Crypto Scams
Source / Social media crypto fraud
One of the most profitable spurring grounds for crypto fraud is the social media space. Scammers post about influencers or famous people promoting their products or platforms in turn for people to fall for them. Always be aware of such fraudulent activities and search for whether or not the person being mentioned has undertaken such promotions.
Apart from such false promotions, you may even get approached by the scammers through messages on social media platforms. Again, be careful before clicking on any links sent by people you don’t know, and research well before taking investment advice from strangers.
Check For Authenticity
One of the tips to avoid crypto scams is to do the authentic check over all the crypto projects that you intend to invest in. You can find genuine URLs and a registered company name on the official website for a project. Information regarding genuine cryptocurrencies is also available on crypto tracking websites.
While using crypto wallets or exchange platforms, ensure that you get the applications from trusted sources. Google Play and Apple App Store routinely remove fraudulent apps from their platforms. Downloading crypto related applications from such platforms is a must for new users.
Avoid Urgent Calls For Help
Scammers may approach you with a cry for help. They may email or message you about being in dire need for help. They send links to donations or some kind of charity platforms by portraying a requirement for genuine help.
Do not fall for such cases as people who require help will never specifically ask for crypto. It is best that you avoid all kinds of cries for help that come from unknown sources.
I do hope this post answered your question of ‘how to avoid crypto scams?’ satisfactorily enough. Crypto scams recovery is a pretty complex process, which is why the best cure is prevention of crypto frauds itself. The digital and decentralized world brings its own security issues. Following tips to avoid crypto scams can help you keep your funds safe, even as a newcomer.
Bottom line: stay safe and do your own research before engaging with any kind of crypto related investments.
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