According to analysts, 2022 was the worst year for crypto hacking.
A staggering $3.8 billion was stolen from crypto enterprises!
Scammers have also had a field day.
They are targeting crypto investors as if there is no tomorrow!
If you have cryptos… trade cryptos… plan on becoming a crypto investor…
YOU NEED TO PROTECT YOURSELF FROM THESE CYBERCRIMINALS…RIGHT NOW!
The types of scams currently in operation make up a pretty long list:
- Cloud Mining
- Fake Websites
- Fake Apps
- Fake Celebrity Endorsements
- Fraudulent Initial Coin Offerings (ICOs)
- “Pump n Dump”
Now before you get disheartened… the way to avoid such scams and hoaxes doesn’t take much more than common sense.
How To Avoid Common Crypto Currency Scams And Frauds?
One of the first things anyone should do when entering the crypto space, is a fairly obvious one…
Do some research!
Better still, go on a cryptocurrency course .
While the technology around cryptos might be complex, it doesn’t take much to get to grips with the basics.
One of those basics, is that cryptos, ever since they were launched, have never been regulated.
That means there has always been a greater risk attached to trading and investing them than say stocks or commodities.
Having said that, governments around the world and financial authorities are now getting more involved with cryptos.
Regulations are now being imposed.
Nevertheless, cryptos by nature are volatile as they are still a relatively new investing asset.
They have only been around since 2009 with the launch of Bitcoin.
Even then it wasn’t until 2017 that the price of Bitcoin started to explode.
When you learn cryptocurrency history, you will know the past 5 years have been incredibly volatile, the price rises, and falls highly dramatic, to say the least.
It is in your best interest to really look into the whole crypto domain and study it carefully, so you know exactly what you are getting into.
We know what the attraction is, because we are trading and investing cryptos all the time, every day, it’s what we do.
But we can do that because we know everything there is to know about cryptos and that is also what we provide as a service: EDUCATION.
Who Are They? Can They Be Trusted?
These are the questions to ask when researching a crypto and crypto company you might be interested in buying cryptos from.
You need to check everything you can about the company issuing the coin.
Check their blockchain network/platform.
How long have they been operation?
Who are the founders?
What is their mission?
You also need to ask these questions of the trading platform you are thinking of using to make your investments through.
How real are they?
Read the small print thoroughly. Scrutinise it to death!
Because you may end up paying hefty fees, more than you should be.
Again, you can protect yourself by being very thorough with your research when you learn crypto trading.
We always are.
Don’t blindly take someone’s advice. People can think they know what they are talking about when really they have no clue.
Never follow someone’s advice without first looking deeply into what or who they are promoting.
How Secure Is Your Wallet?
As of writing, there have been a string of hacking incidents involving crypto exchanges over the past couple of years.
Billions were stolen, and some of the exchanges went bust.
Therefore it has been our recommendation that investors move any cryptos they have on exchanges to a secure, private wallet.
Exchanges have been popular because they are easier to use than wallets.
And there are certainly some exchanges, such as eToro, that are reliable and stable.
A wallet is basically a kind of vault or deposit box.
Only you have the key.
But it is still essential to trust the company providing your wallet capabilities.
Again, know all you can about this company and blockchain it is founded on.
AND NEVER REVEAL YOUR KEY TO ANYONE!
Because like real keys, you can lose your wallet key.
And that would not be good… but is not completely disastrous.
Depending on who you use, there will be special steps to take to retrieve your key and wallet.
Knowing what to in the event of any trouble or scamming is something you definitely need to know when setting up your wallet.
Again, it’s all in the detail and careful, thorough scrutiny of your wallet provider is crucial.
You can also use multi-factor authentication to keep safe and secure.
Other Safety Tips:
Prevention is always better than having to deal with inconvenient remedy, so you can help yourself by spotting cryptocurrency scams before falling for one!
Red flags should be waving furiously if you come across…
- A company or someone promising guaranteed returns
- A crypto company’s white paper is missing from their website
- OTT crypto marketing
- Non-existent founders and team members
- They’re offering FREE money!
What To Do If You Suspect You Have Been Scammed?
No matter how careful you think you have been in avoiding crypto scams, there is always the chance you might have been a victim without knowing it.
So, if you have the slightest suspicion always act quickly if you have made a payment or disclosed personal information.
If you are the victim of a social media crypto scam, you can report it to the relevant social media platform.
If you have:
Made a payment to a dodgy crypto site using a debit or credit card or via bank transfer, contact you bank immediately.
As a general rule, it is a good idea to change your usernames and passwords regularly as an additional security measure.
Without doubt the best way to avoid common cryptocurrency scams is by only investing in things you fully understand.
And the best way to get fully informed and educated is by going on a crypto trading course.
Here at Investment Mastery, we provide exactly that for ANYONE wishing to learn about this exciting trading and investing asset.
Because you don’t need to be a rocket scientist to understand cryptos – just the help of expert mentors, educators and coaches.
You can get introduced to some of the finest by joining IM Insider.
IM Insider is FREE and gives you access to so many useful guides, videos, books and forums to kickstart your learning about stocks and cryptos and other investment assets.
Simply subscribe here.