There are many popular cryptocurrencies in the market, such as bitcoin, dogecoin, Ethereum, etc. if you are investing in any of the cryptocurrencies, you must do it wisely. Investing in cryptocurrencies is associated with risks. Moreover, if you become a victim of Cryptocurrency Platform, you may lose a significant amount of money. Here you will be introduced to a few popular cryptocurrency scams as well as ways to avoid them.
- Business opportunity scams
You get offers from fraudulent websites to invest in certain businesses and get good returns for the investment. You will be asked to do a transaction, but once you do so, you will lose the money forever.
- Imposter cryptocurrency scams
In such scams, a cybercriminal tries to convince the victim by posing as a trusted source. In this source, they will ask you to do a transaction or trade in cryptos. The cybercriminal may request the transaction under the disguise of a credit card agency, bank, government authority, etc. You must verify the website and should not proceed if you have doubts about the website.
- Extortion cryptocurrency scams
Extortion or blackmail scams are also increasing in number. You may get emails stating that someone has compromising personal information about you such as videos, photos, etc. Do not pay heed to such emails and report them immediately to avoid any scams.
- Fake apps
Before downloading any app, you must verify it. Downloading fake apps may lead to cryptocurrency scams. Skilled cybercriminals can create a replica of popular apps and allure you to download them. You will lose your money when you download them. Verify an app from authorized sources before downloading them.
What are the ways to avoid cryptocurrency scams?
If you can spot various cryptocurrency scams, you can avoid them and invest safely. These are some ways to avoid scams in the cryptocurrency world.
- Do enough research
New cryptocurrencies keep emerging and currently, you can see over 18,000 cryptocurrencies present in the crypto market. Before you invest in a particular cryptocurrency, you must do enough research. If you are not aware of a particular cryptocurrency exchange, try to search for it and gather as much information as you can. You must check the transparency of these exchanges and the ICO rules. If needed, reach out to the exchange where you will get all your doubts clear. You must also check if the particular exchange uses blockchain technology or not.
- No need to pay in cryptocurrency transaction
Cryptocurrency is a decentralized currency and it is not under the regulation of any centralized authority such as a bank or government. If you use a trusted online platform for cryptocurrency transactions, you do not have to pay any intermediate fees. If you are asked to pay any fees or commissions to a third party, consider it a warning signal of a scam.
- Ignore urgent requests
If you receive urgent payment requests during your cryptocurrency transaction, it is a significant red flag of cryptocurrency scams. Do not respond to these requests and it is better to delete them.
- Beware of “get-rich-quick” offers
Get-rich-quick offers are very tempting. Cryptocurrency investments cannot come with guarantees and you cannot make quick money by investing in cryptocurrencies. If you are given such offers, consider these offers as scams and it is better that you avoid such proposals.
- Report scams
If you feel you have been targeted for a cryptocurrency scam and get some unusual proposals, you must immediately report these incidents to the respective authorities. You can report such scams to these undermentioned authorities-
- Securities and Exchange Commission
- Federal Trade Commission
- Commodity Futures Trading Commission.
Conclusion:
If you are new to the world of cryptocurrencies, you must do enough research to know various terms and how cryptocurrency trading works. Even if you are a new cryptocurrency trader, there is nothing to worry about when it comes to cryptocurrency trading. There are many online cryptocurrency trading platforms available that allow you to perform trading securely and without any hassle. You can learn how cryptocurrency trading happens and avoid cryptocurrency scams by using online apps. There is no need to monitor the market closely as these online trading platforms teach you cryptocurrency concepts and help you perform transactions anytime, anywhere.