Scams have become very rampant in the online space, and cryptocurrency exchanges are not far from it. Cryptocurrency exchanges have become a very lucrative space for scammers to operate from, as most users are not well versed in technology. The high lure of obtaining high returns on investments has led to many people losing their money.
You can check out BestBitcoinExchange for more information on the various types of cryptocurrencies. Here is a list of common cryptocurrency scams and how you can avoid them.
- Pretentious Websites
- Fake Apps on Mobiles
- Beware of Fake News
- Mail Scammers
- Social Media
- ICO Scams
Pretentious Websites.
Online, fraudulent individuals will always be looking for ways to get money from you. Cryptocurrency exchanges are not excluded from this. A common trick that many scammers try is creating an elaborate website that gives the appearance of one thing, but it’s something else entirely.
The safest method to avoid falling victim to these kinds of tricks is to check out their websites thoroughly before making any transactions with them and making sure that they are registered at places like ICANN (Internet Corporation for Assigned Names and Numbers). You should also capitalize on the use of VPN (Virtual Private Network) to be extra safe.
Europeanbusinessreview advised that you should reconsider delving deeper into the website even when you have seen the small lock icon
Fake Apps on Mobiles
Most of the scams you will find on cryptocurrency exchanges will be on mobile devices. One of the most frequent scams that occur on mobile devices is fake apps. Many apps appear like they mean to help cryptocurrency enthusiasts, but in fact, they mean harm. Research the reviews and comments about these applications before downloading them to your device, and if you’re unsure, avoid downloading them altogether.
Bitcoin News reported that Thousands of individuals have already downloaded fake cryptocurrency apps. To reduce the potential for fraud, highly secure crypto exchange platforms offer hot wallet insurance and also encourage users to utilize two-factor authentication codes and transaction.
One of the best things you can do for yourself is to read reviews and recommendations from other crypto enthusiasts. If you see an app giving something away for free, there is a good chance that its part of a scam. Unfortunately, many cryptocurrency apps do not fit the statement ‘free.’ You have to pay for even a basic level of functionality. One of the worst things you can get from these paid applications is malware. These malicious applications will get on your device, and you will not even notice until it’s too late.
Beware of Fake News
Fake news is another one of the most common scams that take place on crypto exchanges. A website could appear legitimate, but in fact, it’s 100% fake news, don’t be fooled. We all make errors, but making an error once should not be enough for someone to ruin your reputation and money. Therefore, it’s essential to vet websites thoroughly before trusting them with your money. You can fall victim to many scams if you’re not careful, and fake news is one of the easiest to fall for.
To vet a website’s legitimacy, first check if they are registered with ICANN or similar organizations. If they are not, then find out why. If it is an article whose authorship cannot be traced, then it might be best not to trust it. It’s also good to check the date of the article, as most fake news are written in a way that makes them give the impression that they are current news pieces.
Mail Scammers
Email is another avenue that most scammers will use to trick people. Currently, many scammers are sending emails, offering users the chance to earn money from their cryptocurrencies. These emails come in all types of forms, but they always ask for your private information. One way to confirm if an email is a scam is by checking the address it came from. Also, never click on links in an email unless you are sure it’s safe.
Scammers are targeting individuals who are not well-versed in technology, so they can get away with these scams without being caught or noticed until it’s too late. So before you send any money online, make sure that you’re dealing with a trusted source, and making payments through secure channels is always recommended.
Social Media
Talking about cryptocurrency, social media has become the best avenue for scammers to operate from. There are many groups on social media that offer people opportunities to earn money from their cryptocurrencies, and most of them might end up being scams. Kaspersky warns against trusting offers from Twitter or Facebook, particularly when there seems to be an impossible result.
If you’re in a group and you’re not sure if they’re legit, you can always do some research about the people who run the group. For example, if an admin is asking for money with no explanation whatsoever, then there’s a good chance that it is a scam. Likewise, if the admin does not post links with descriptions about their offers, avoid joining their group altogether.
ICO Scams
Another common scam today is the Initial Coin Offering, or ICO for short. Unfortunately, this scam has been around for quite some time, and it is another one of the easiest scams you can fall victim to.
There are many websites that will offer you the chance to earn money from your cryptocurrencies by investing in their ICOs (Initial Coin Offerings). Although many of them seem trustworthy, they will end up asking for money before they release their product or service. Therefore, you should always be cautious when dealing with people offering products or services that are not in existence yet.
According to Nathan Reiff of Investopedia, “the best way to be safe against this fraudulent scheme is to thoroughly check the individual team members of a project before you invest”. Checking the whitepaper thoroughly can also be very effective.
Final words
There are numerous ways you can avoid falling victim to cryptocurrency scams. The best thing you can do is to only trust the information you’re gathering from reliable sources, and never trust an individual or website without doing some research first. The more you research, the safer you will be.
