Cryptocurrencies have become increasingly popular over the last few years. They are already a legitimate payment method in a number of large companies and seem to be gaining new followers with every turn of the clock.
While more and more people use services like a SEPA crypto exchange, it is only natural that they will attract the attention of scammers and other wrongdoers. Unfortunately, many crypto beginners get lost in the new digital monetary mechanisms and become victims of fraud. Luckily, there are a few things you can do not to share their fate. Here is all you need to know to avoid cryptocurrency scams:
Check the Legitimacy of the Website
If you are unsure whether a website is legitimate, you should check it for certain security features. The best way to do it is to use a certified service like Norton or McAfee.
Be Wary Of Offers That Seem Too Good to Be True
If someone is offering you crypto at an unusually low price, you should exercise caution and make sure that it is not a scam. The same goes for scams that offer free crypto if you make a small investment first. Always check the legitimacy of such offers before you get involved in a deal.
Be Careful With Your Private Information
There are some scams that have nothing to do with cryptocurrencies. Some scammers ask their potential victims to share their personal data (bank account number, etc.) before they will send them the promised cryptocurrency. Don’t fall for it! No one needs your bank account information in order to transfer crypto to your wallet address.
Check the Exchange Rate
Some cryptocurrency scams use a high exchange rate to persuade potential victims into giving them their money. Before you decide to buy any cryptocurrency, make sure that you are not being cheated. Otherwise, you will end up losing more money than you actually invested.
Learn and Study
The first step to avoid crypto scams is to educate yourself. The more you know about the various ways scammers can take advantage of new users, the better. You should study how everything works and what precautions you should take.
If you want to invest in crypto, start by learning about the underlying technology and business models. If you understand the way cryptocurrencies work, you will be able to identify scam projects and be careful with your investments.
Remember that there is no such thing as a risk-free investment, so you should not expect your crypto to grow exponentially overnight. If you want to earn money on the course, you need to invest in it for the long term and be willing to wait for months and even years to see your initial investment grow. Even then, you need to be prepared for a lot of ups and downs.
Be Careful When Choosing Exchanges
Cryptocurrencies are exchanged on crypto exchanges. There are numerous crypto exchanges available at the moment, but not all of them are trustworthy. Some of them may be outright scams, so you should exercise caution when choosing the one that will be the market for your crypto.
As a rule, exchanges based in unregulated jurisdictions and those that do not comply with AML/KYC policies (Anti-Money Laundering and Know Your Customer) should be avoided at all costs. Additionally, if an exchange has been hacked before or has a bad track record, you should avoid it at all costs as well.
The safest way to go about this is to choose a reputable exchange known for its security features. For instance, Binance is one of the safest cryptocurrency exchanges out there. It is also one of the largest exchanges in terms of daily volume.
Always Check the Credentials
Lastly, it is important to note that fraudsters come in all shapes and sizes. They can be people offering a shady investment opportunity or shady-looking exchanges, but they can also be the official representatives of a cryptocurrency.
An example of this would be the fraudulent IOTA exchange set up by scammers who used the name of the legitimate IOTA Foundation. While IOTA has nothing to do with this fake exchange, some users may get confused and accidentally use it. In that case, they will lose their money without getting anything in return.
This is why it’s important to always check the credentials of any exchange before using it. You should make sure that the site you are using is legitimate and that you have access to the real customer support team of the platform. Always use verified exchanges even if they are not as popular as their shady counterparts.
Use a VPN
Finally, we recommend using a VPN when accessing cryptocurrency-related sites or making transactions. This is an effective way to decrease the chances of being attacked. By using a VPN, you will hide your personal information from potential scammers and keep your private data safe from theft and unauthorized access.
Cryptocurrency scams have already become a problem for many crypto traders. It is important to know how to avoid them so that you can enjoy the benefits that cryptocurrencies have to offer. Just follow these few simple rules, and you will be fine!