Cryptocurrency

All You Need to Know About Crypto Scams

crypto scams

The crypto market has reached new heights and set new records. As it gains momentum and reaches a wider section of people, it comes with its risks. After all, there is a reason cryptocurrencies are called dangerous investments and it is because of their volatile nature and increasing fraud. Scammers have started taking advantage of their growing popularity. To ensure secure transactions, it is mandatory to do your research and read about the website or platform you are buying and selling at.

Well, to beware of these fraudulent methods, one must be aware of them. It is crucial to educate yourself before you buy cryptocurrency, just to stay on the safer side. To help you out, we have compiled a list of the top 3 scams to know about to stay safe.

Types of different scams

  1. Giveaway

One of the most common ways of scamming is through giveaways on the internet. They are usually in the form of fake websites, messages or Twitter posts saying they are giving away a certain amount of digital coins for free. However, there will always be a catch. Either a third party link will be attached where you might have to enter your personal information or it will ask you to send you crypto coins and they will be doubled. These are fake messages generated using bots and anonymous profiles.

  1. Investment

The hardest scam to identify is the investment schemes. Using hoax websites and initial coin offering projects, scammers build communities offering Ponzi schemes and investment opportunities. They try to create traction around their projects and digital coins in the market to attract new traders. Additionally, they claim high returns and a chance for you to be the first buyer of new currencies whose prices could soar in the future. The one most important pointer to remember is that, if it seems like a great deal that is too good to be true, it isn’t safe and secure.

  1. Phishing

The next on the list are phishing scams. As the use of social media and the internet grows in our lives, people have started taking advantage of this by posing as employees or investors. Additionally, they set up websites imitating startups and investing platforms to steal private information and data. In the case of crypto coins, it becomes necessary to stay vigilant and ensure the websites you visit are safe and secure. As private keys and wallets cannot be recovered, if you phished all your digital assets will be gone.

How to protect yourself from scams

  • While downloading a cryptocurrency wallet in Indiaremember to read reviews and check customer ratings to ensure it isn’t a fraud.
  • While visiting crypto linked websites, always check that they have the HTTP and a lock on the URL for security reasons. Before buying or selling, look for trustworthy and recognised websites.
  • Never click on third party links that you may receive through emails or messages. They send lucrative offers to attract buyers but end up phishing them.
  • Before investing in a digital coin, check if it is listed on reliable platforms and is covered by popular crypto websites.

Conclusion

From the looks of it, the digital currency market is only going to increase in the future. With the launch of new coins and advancements in technology, it is important to stay aware and cautious about where you invest your money. Cross-check and research cryptocurrency exchange in India before giving your personal information. These scams and frauds are going to be there, the only thing that can be done is to stay aware.

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