Everyone is looking for the best cryptocurrencies to buy, and how to make money in crypto, but only a few are interested in how to avoid crypto scams.
Sadly, a huge number of people have lost money to crypto scams.
These crypto scams come in many forms and are constantly changing to keep up with trends and current events.
According to The FTC, “since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams – that’s about one out of every four dollars reported lost.”
While there is nothing wrong in looking for the best cryptocurrencies to buy, or how to make money in crypto, securing your crypto should remain a top priority.
Because failure to do so, you are likely to lose big.
You don’t want that, do you?
So, in this post, I will share with you important tips on how to avoid crypto scams.
How To Avoid Crypto Scams
1. Do Your Research
One of the easy ways to avoid crypto scams is to be an informed investor/trader.
It does not matter if a billionaire, celebrity, or influencer recommended the coin or company.
Instead of going all in at once, take some time out and research properly before investing your money.
If you are looking for how to start, you can start by searching online for the company or the cryptocurrency name, plus “review,” “scam,” or “complaint.”
You can also check when the coin or the company was created, who created it, why it was created, plus the history of the founder.
Don’t allow FOMO to drive you into losing your hard-earned money.
The last thing you want to do is invest in coins and companies created solely to make their founders rich.
2. Always Double Check URLs and Domain Names
Scammers often copy the URL of legitimate crypto sites and swap out letters or numbers to trick victims.
These fake sites usually have similar but slightly different domain names from the websites they attempt to impersonate.
The fake websites will look very similar to legitimate sites, making it difficult to tell the difference.
So, whenever you visit a crypto website, watch out for misspellings, and make sure the URL is not manipulated in a way to look like the legitimate one.
3. Pick a Reputable Crypto Exchange
Crypto exchanges are a big part of the crypto industry. They are where people buy, store, and trade cryptocurrencies.
Sadly, some crypto exchanges that appear big outside are fraudulent exchanges.
You don’t want to get in business with such exchanges that can disappear with your money.
This is why, to avoid crypto scams, you should store your coins in a crypto hardware wallet, where you have 100% control of your funds.
Another alternative is to make sure you pick a reputable crypto exchange for your crypto needs.
You can check out my recommended crypto exchanges if you don’t know an exchange to trust.
4. Don’t Trust anyone
Don’t trust anyone who contacts you directly offering an investment opportunity, be it government officials or public figures – do not trust anyone.
Rather, I will recommend you treat them with extreme caution.
Another one is fake testimonials, scammers can also show reviews or testimonials by people who have made lots of money by using their program. Whereas those could be paid actors or made-up reviews, you cannot confirm the stories.
Some celebrities and influencers also accept money from scammers to promote their scams – it may sound hard to believe, but it is what it is.
Surviving in the crypto market requires that you trust only yourself.
5. Don’t Share your Password or Two-Factor Authentication (2FA) with anyone
It doesn’t matter if you are certain you are interacting with a trusted party – no company will ever ask you directly or through its agents to share your password or two-factor authentication code.
So, to avoid crypto scams, you must refrain from sharing sensitive information that can be used to gain access to your account or complete a transaction.
When in doubt, visit the company’s official website and contact Customer Service.
The list above may not represent all, but just some of the best tips on how to avoid crypto scams, as I already mentioned that these scams come in many forms and are constantly changing to keep up with trends and current events.
One more thing – the numbers above can’t be taken for granted, so do not underestimate these scammers, even if it looks like it’s going to be hard for you to fall for these scams.
It is better to be safe than sorry.
[READ: 4 Best VPNs For Crypto Trading]
IMPORTANT; you must never send money to anyone you meet online asking to help you invest in cryptocurrency. They are scammers. Crypto is easy, and you can do it all by yourself.
The information presented here should not be used as the sole basis of any investment decisions, nor should it be construed as financial, tax, legal, or accounting advice. I will also advise that you invest in cryptocurrency only what you are comfortable living without, at least temporarily.