How to Avoid Cryptocurrency Scams

So. You’ve heard of Bitcoin and you’ve decided to spend time getting involved with cryptocurrency. Maybe you want to invest in cryptocurrency for the future. Or maybe you want to use cryptocurrency to make online purchases without risking your credit card information becoming compromised.

Whatever the reason, there are plenty of reasons to consider exploring the world of cryptocurrency. Cryptocurrency continues to rise in popularity and is considered a more secure method of online payments than credit cards.

However, while cryptocurrency is more secure, that doesn’t mean that you still can’t find yourself falling into scams. Here are some tips that’ll help prevent you from falling into a cryptocurrency scam.

Look for fake emails

One way scammers lure people in is by sending them an email, offering a great price for an initial coin offering (ICO). They’ll offer coins in exchange for fiat money, telling you you’re getting a great deal. However, the cryptocurrency ends up being fake, and you get scammed. Whenever you receive an email from a company, verify that you’re dealing with the company itself and not a scammer. Look for legitimate email addresses and be cautious when clicking on links.

Make smart investments

One thing to keep in mind is that cryptocurrency is a risky investment no matter what, simply because the market is very volatile. Some compare the cryptocurrency industry to the stock market. To help make wise investments and prevent scams, always do your research before opening a new account on a cryptocurrency exchange. Look for news about the cryptocurrency industry daily. You should also avoid investing any more than you’re willing to lose because of how fast the industry evolves.

Avoid giveaway events

Scammers also lure people away with fake giveaway events on social media. They’ll promise you a free item in exchange for cryptocurrency. They’ll tell you to send them coins so that they can verify your address, promising to send the coins back afterward. However, not only will you never receive your free item, but you also won’t get your coins back! Be cautious of giveaways when you see them. If you think it is a legit opportunity, research before sending coins.

Don’t pay for training

If you’re looking for jobs and posting your resume on job boards, be prepared to receive some scam emails! One common scam is that someone will reach out to you, claiming to be from a company and offering you a job, but telling you that you need training before you can start. They’ll tell you if you give them cryptocurrency, they’ll train you, then you’ll be able to start working. Never exchange coins or personal information in such an email.

Unregulated exchanges

Another common scam is that scammers will build a fake exchange site, wait for people to pay with fiat money, and then either close the site or not make the exchange. Always research an exchange site before using it. There are plenty of resources out there, such as Crypto Head, that can help you find legitimate exchange sites. Signs that an exchange site might be fake include bad grammar, inconsistent branding, poorly written social media posts, and unsecure URLs.

Access websites directly

When it comes time to visit exchange sites, always access the site from a direct URL instead of clicking on a link from social media or through email. Accessing websites directly ensures that you don’t land on a fake website. Some scammers create sites that look identical to an actual exchange platform. There will usually be some differences, such as a small variation in color scheme or poorly written content, but if you’re not careful, you end up scammed. Accessing websites directly helps prevent this.

Watch out for malware

Another trick some scammers will use is infecting your computer or phone with malware that then gives them access to your virtual wallet. Once they have access to your virtual wallet, they can drain the account. People make the mistake of clicking on a link in an email or a link on a malicious site, download an attachment, and unknowingly install malware. Always be cautious when downloading files from the internet. Also, make sure you have antivirus security software installed.

Final thoughts

Many people, if they’re not careful, will find themselves victim to a cryptocurrency scam. However, if you do your research and stay alert to the sites and links you’re using, you can avoid falling into a scam. Many common scams that are used to get fiat money are also used in the cryptocurrency industry.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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