Cryptocurrency transactions are irreversible, which means that once you transmit cryptocurrency to a third party, you can’t stop or reverse the transaction. You must be certain of the legitimacy of any involved third-party services and merchants before sending cryptocurrency to a blockchain address, and only send cryptocurrency to businesses you trust.
AVOID ALL CRYPTOCURRENCY PLATFORMS
You need to avoid all fraudulent cryptocurrency exchanges. Only use reputable and well-known bitcoin exchangers. Check Bitcoin forums and subscribe to legitimate RSS feeds or notifications to stay informed about phony exchanges. Alternatively, for serious investing chances, stick to reputable Bitcoin platforms.
DON’T FALL FOR SOCIAL MEDIA ATTRACTIONS
It’s a fraud if you receive a tweet, text, email, or social media communication instructing you to send cryptocurrency. Even if the message came from a friend or a celebrity posted whom you follow, this is accurate. It’s possible that their social media accounts compromised. Report the scam to the social media platform right away.
BLOCKCHAIN POWERED STARTUPS
Experts advise that while researching digital bitcoin companies and startups, make sure they’re blockchain-powered, which implies they monitor through transaction data. Check to see if they have credible business plans that address real-world issues. Companies should define their digital currency liquidity and initial coin offering (ICO) standards. Genuine people should run the company.
BE CAUTIOUS OF FAKE WEBSITES
Scammers frequently launch fraudulent ICOs, or initial coin offerings, in order to steal large sums of money. Don’t be fooled by these phony email or website offers. Take your time to examine every aspect.
Unfortunately, there are numerous ways for some Internet users to mine or steal cryptocurrency using insecure computing platforms. In this new mark, learn more about staying safe and protecting yourself.
To use an exchange you can trust that doesn’t demand large fees. People who are trying to trade away the money are usually thinking of getting a major chunk out, Make sure you store your bitcoins in an offline wallet, such as a hardware wallet.
“‘Not your keys, not your crypto’ — you’re at risk if you don’t have custody of your cryptocurrency in your own wallet.”
DON’T GO FOR APPS THAT PROMISE GUARANTEE
Don’t be fooled by advertisements or websites promising instant riches by investing in digital coins or tokens. To distinguish between hype and truth, thoroughly examine virtual currencies, digital coins, tokens, and the firms or entities behind them.
There is no guarantee of such thing as an investment or trading strategy. Do not invest if someone claims you there is no chance of losing money.
CHECK THE COMPLETE DATABASE
Check the EDGAR database of the Securities and Exchange Commission to see if a company has filed with the SEC. If that’s the case, go over the reports and double-check any information you’ve heard about the company. But keep in mind that just because a firm has registered its stocks or filed reports with the Securities and Exchange Commission (SEC) doesn’t indicate it will be a smart investment in general—or the proper investment for you.
Scams using cryptocurrencies have become more widespread in recent years, and they use a variety of techniques. Investors and traders must be vigilant in order to avoid becoming security targets and becoming victims of scammers.
The cryptocurrency industry is still in its infancy and is mainly unregulated. This gives crooks more opportunity to swindle investors by using various strategies and techniques to gain access to their wallets or take their hard-earned money by promising enticing but unattainable profits.
This does not make cryptocurrencies any less appealing as investment vehicles, but it does make them more complex.