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4 Ways To Avoid Cryptocurrency Scams

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Scams are getting increasingly widespread, especially as the popularity of cryptocurrencies is growing. Here are four methods to avoid cryptocurrency scams.

Cryptocurrency investment

Source: Pexels

The world is marching towards the digitalization of currencies. Every financial decision revolves around the impending digitalization drive of the global economy. With the growing pace of digitalization comes a rise in scams. With technology penetrating all sectors of society, new technology scams are on the rise. An investor needs to know about scams breathing down their necks before making any investing decisions.

Cryptocurrency Scams

Cryptocurrency started as a medium of exchange digitally, with no cash involved in the transaction in a virtual environment. But with technology-enabled cryptocurrency, scams play their role too. There seems to be a swarm of scams on virtual setups, such as cryptocurrency.

How do you recognize a cryptocurrency scam?

  • The first sign of a cryptocurrency scam is when a seller asks you to pay in cryptocurrency. It may leave no room for a buyer to get back his money in case of a dispute. It indicates a scam.
  • When consultancies, to provide a service, ask for money in cryptocurrency, this too indicates a fraud.
  • Tall claims from sellers on cryptocurrency appreciations with no backup evidence indicate fraud.
  • Promise money or cash against cryptocurrency is one indicator of online fraud.

These are the ways to detect cryptocurrency fraud. An investor should know these common signs of fraud before putting their money down in cryptocurrency.

We have listed four ways to avoid cryptocurrency scams to help cryptocurrency buyers. It helps them safeguard themselves from online scamming activities around cryptocurrency.

1. Recognize fake web addresses

One of the most common and practiced scams happens through fake websites and dark webs. Scammers often using unethical means to build fake websites to deceive buyers. The most common way to avoid such websites is to analyze the URL address of the website. A legit website will have a properly structured URL with HTTPS at the start. The fake ones will have HTTP with no S, which means these websites are not secured.

2. Avoiding scams in the name of freebies

Social media has gained popularity as the most used platform for digital communication, thus making it ideal for conducting scams. Imposters try to scam people by posting fraudulent contests, giveaways, promotions to lure prey into the name of reputed companies. A proper background check of these claims and the website is necessary to avoid the trap of these frauds.

Cryptocurrency scams
Source: Freepik

3. The process of phishing

Phishing is an illegal process practiced by scammers to obtain the personal data and credentials of unassuming buyers. Sensitive and personal details are used to conduct monetary scams leveraging the leakage of personal data. Sharing details on authentic websites can reduce the risk of phishing from scammers.

4. Recognizing fake online applications

As fake websites are on the rise, counterfeit applications are too. One of the primary tools of scamming cryptocurrency investors is these applications. Every investor should know how to differentiate between a fake and legit application to prevent online frauds and scams.

To conclude, online scams in cryptocurrency are becoming a common phenomenon, yet people fall prey to them. The sound information and pro tips listed above will help investors invest in legitimate sources and prevent cryptocurrency scams.

References:
https://www.ftc.gov/news-events/blogs/data-spotlight/2021/05/cryptocurrency-buzz-drives-record-investment-scam-losses
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