How To Avoid Cryptocurrency Scams
At the moment, cryptocurrency has got the world divided. While its proponents claim,
cryptocurrency will usher in a new digital future, detractors often raise security issues that have
haunted exchanges and traders in the past. Over the years, various scams and hacks have rattled
the industry. While there is no denying that much needs to be done in this area, in many cases, it
is the trader’s negligence that gives hackers the window of opportunity to execute their plans. To
help you stay safe when trading cryptocurrencies, we, in this post, impart a few tips to avoid
common scams. Take a look.
1. Research thoroughly
Before opening an account with a cryptocurrency exchange or trading a particular altcoin,
conduct a thorough research. Learn everything you need to know about the exchange including
its operational history. Read trader reviews regarding exchanges and new products. To keep
abreast of the changing regulations and trends, visit forums by and for cryptocurrency
2. Avoid placing altcoins on an exchange
Instead of placing all your altcoins on an exchange, consider transferring them to an offline
wallet before signing off for the day. If time wastage is your excuse to not adopting this practice,
let us tell you that it does not take much time to transfer altcoins back to your exchange. If you
do not have any intentions to exit early, upgrade to a cryptocurrency hardware wallet. Before
starting to use an Android wallet, research thoroughly, as the market is flooded with fake ones.
3. Watch out for signs of fraudulent Initial Coin Offerings
Over the years, ICOs have gained traction. There is something in it for everyone. While
blockchain startups conduct ICOs to raise funds, investors can reap profits once the crypto
project starts producing good returns. That said, many ICOs are nothing more than a part of an
elaborate plan to dupe traders.
To steer clear of losses, only invest in ICOs with a credible team at the backend. Never rely on a
company that tries to avoid questions. Go through the content on their website thoroughly and
make sure there is no difference between what they say and promise. Avoid dealing with
companies that try to rush you into a decision.
4.Steer clear of impersonators
Many scammers create fake social media profiles similar to that of key industry figures. Watch
out for such profiles. Never share your private wallet keys with someone you don’t know or
can’t trust, even if they try to lure you by offering an unrealistically high ROI. If an impersonator
approaches you, report the account to the social media platform.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.