The Federal Trade Commission reports that over 46,000 consumers reported falling victim to bitcoin crypto fraud last year. A total of $1 billion was lost due to these frauds. And the most shocking fact is that the number is still increasing rapidly.
Sadly, because the market is mostly unregulated and so many people are interested in investing in virtual currency, it is riddled with fraudsters and scammers.
The good news is that, in order to prevent fraud, you don’t have to abandon your ambitions to diversify your portfolio by investing in cryptocurrencies. By implementing the below-mentioned tips, you can avoid Crypto scams to a great extent.
6 Best Ways To Avoid Crypto Scams
In-depth Research
Being an informed investor is the best thing you can do to prevent falling for a cryptocurrency scam. Before investing in any Crypto coin, ask yourself the following questions –
- When were the coins launched, who created them, and why?
- What kind of technology is involved
- What sets them apart from other currency offers
- The number of coins being circulating
You should avoid buying cryptocurrencies that were developed only for the purpose of making their creators wealthy by making sure you understand their ins and outs.
Additionally, you should study the websites you use to purchase cryptocurrencies to be sure they are safe and have a reliable reputation.
Don’t Take Decisions Based On Someone Else’s Advise
There is a lot of poor cryptocurrency advice out there, and you don’t want to fall into fraud by listening to them. Don’t listen to advice from popular influencers, users of social media or online discussion boards, or anybody else you don’t know well or who doesn’t have a strong financial background.
Ensure That Your Cryptocurrency Wallet Is Safe
Make sure your digital wallet was created by a reliable organization with a proven track record if you purchase virtual currency and store it there.
You shouldn’t share your wallet login information with anybody and avoid using public Wi-Fi when accessing it. Enrolling in two-factor authentication and password-protecting your devices is essential so that if someone gets a hold of your phone or laptop, they cannot access your wallet.
Additionally, using many wallets and even offline cold storage devices. You won’t lose anything if there is a breach this way.
Utilize Multi-Factor Authentication
With the help of multi-factor authentication, you can rest assured that even if a hacker manages to get their hands on your login information, they won’t be able to access your wallet or cryptocurrency trading account. This is due to the fact that a code would need to be provided to your phone or email before they are granted access. That won’t fly with them. Receiving a code you didn’t request will also be a warning that someone has tried to access your account.
Pay Special Attention To Website Urls
You don’t want to put your information on any insecure websites or become a victim of a fake website. Therefore, take sure to thoroughly examine the website URL to ensure that it starts with https (not http) before attempting to sign in.
Think About Buying Cryptocurrencies Through More Safer Ways
Finally, if you want to ensure that you don’t become a victim of a crypto scam, think about investing in ETFs that provide you exposure to the industry or purchasing stocks in businesses that frequently have their performance influenced by crypto (such as tech companies). With these more traditional, regulated investments, fraud is considerably less likely.
Avoid Cold Calls
It’s certainly a fraud if someone reaches you unexpectedly to pitch you a cryptocurrency investment opportunity. Never provide anyone who contacts you in this way with your personal information or money.
Only Download Apps From Official Platforms
Always try to download apps from official platforms like Google’s Play Store and Apple’s App Store. The applications available in these stores are priorly tested and never download apps from any 3rd party source.
Conclusion
With these 8 tips in mind, you can hopefully keep your money secure even when you suffer cryptocurrency fraud. The lack of regulation and high volatility makes the Crypto industry highly unfavorable for beginners. So, the ultimate and the best way to mitigate the risk of being scammed is to choose a good & reputed Crypto trading platform like Brokereo.
