Do you think about cryptocurrencies like bitcoin, Ethereum, Solana, Dogecoin, Cardano electra. The crypto scam associated with digital currencies? Now in this blog, we will discuss various scams involved in the cryptocurrency market, and how to avoid them to generate the best possible gain rating.
Let’s know about cryptocurrencies:
WHAT IS CRYPTOCURRENCY?
Cryptocurrencies are digital currencies that work on networks. Anyone can start buying and selling cryptocurrencies via their phone, computer or any device from anywhere. Also, the transactions of cryptocurrencies are recorded on a public ledger called blockchain nodes. It is considering a secure option for transactional storage as it does not include any central server or bank institutions to record transactions; it all works on a Decentralised Finance.
HOW PEOPLE CAN USE CRYPTOCURRENCY?
There are many reasons why people use cryptocurrencies.Cryptocurrencies have seen tremendous growth all around the world in recent years. The scale of people interested in cryptocurrencies is also massively increasing. People prefer to use digital currencies for many reasons today, like buying, selling, trading and investing, quick payment, avoiding transaction fees and bank charges.
Besides trading and investing, cryptos expect to be utilized in the future to make payments as well. Many big brands like Microsoft, Starbucks, Amazon, PayPal, Pizza Hut and so many other real estate companies have already started accepting cryptocurrency payments.
HOW DO PEOPLE GET CRYPTOCURRENCY?
A cryptocurrency ATM, a website, an app or an exchange are all places where you can purchase cryptocurrencies. Some people generate cryptocurrencies through a labor-intensive process known as mining, which necessitates sophisticated computer hardware to resolve extremely challenging maths problems.
Now let's explore the scam risks involved in digital assets and how we can avoid them.
HOW SCAMS BE DONE WITH CRYPTOCURRENCY?
Although there are several rewards and earning opportunities from digital currencies, the risk factor also runs parallel.
Today, we will discuss various scams involved in Bitcoin, Dogecoin, Ripple, Solana or any Altcoin trading and how one can avoid the possibilities of market scams.
HOW TO AVOID CRYPTOCURRENCY SCAMS?
Cryptocurrency scams are a common practice among scammers, who constantly develop new techniques. Some things to know to avoid crypto scams :
INVEST ONLY WHERE THERE YOU KNOW:
Before deciding whether to invest, it is important to take a break and conduct further research, if the operation of a certain cryptocurrency is unclear to you. Without full knowledge & understanding do not invest. It may be fake.
1. DYR (DO YOUR RESEARCH:
The most used cryptocurrencies are not scams. To learn more about a cryptocurrency you haven’t heard of, do some research on it. Check to see if there is a white paper you can read, learn who manages it and how it functions, and look for unbiased reviews and endorsements. To check for scams, locate a reliable current list of fake cryptocurrencies.
2. PYW (PROTECT YOUR WALLET:
If you buy digital currencies & store them in a crypto wallet, you will make sure that it protects. You do not share your wallet’s login information with anyone and stay from using public WiFi when using a wallet. In addition, using several wallets and even offline cold storage devices can be a good idea.
3. SELECT A REPUTED EXCHANGE :
Users must select a reputable exchange for trading or investing in cryptocurrencies. It is always advisable to look for an exchange with a good market reputation & a good user base in the industry. Moreover, the users must seek information like the transaction fee & security measures- two-factor authentication & cold storage.
Some exchanges charge higher fees from others, affecting your profits. Ensure you understand the fees associated with each transaction
4. BEWARE OF PHISHING SCAMS:
Mostly crypto phishing scams target information relating to online wallets. Often crypto wallet private keys, targeted by scammers. Which require access to funds within the wallet. They operate in a similar way to previous phishing scams, associating with the fictitious websites mentioned above. To entice recipients to a specific designed website where they ask to provide private key information, they sent an email. The cryptocurrency in those wallets is seating by hackers when they know this information.
5. KEEP YOUR PRIVATE KEYS PRIVATE :
You need to avoid sharing your private keys with any third party. Never share your password with someone else. Your private keys use to access your cryptocurrency wallets and make transactions. This can give them full access to your cryptocurrency wallet and transactions.
ABANDON COLD CALL :
It’s probably a fraud if someone reaches you out of the blue offering you a chance to invest in cryptocurrencies. Never give anyone who contacts you in this way your personal information or money.
SOME CRYPTO SCAMS 2023
1.SCAM BY TEENAGERS: Two teenagers from Rajasthan were allegedly defrauding individuals through a telegram channel in the pretence of cryptocurrency trading. The victim transferred ?45,000 with the assurance that would get ?90,000 in return.
2.MAN & HIS FRIENDS DUPED OF ?36.1 LAKHS: In Pune, ?36.1 lakhs on the promise to double his investment in 100 days. Three people collectively invested still did not get returned.
WHAT YOU CAN DO IF FALL INTO CRYPTO SCAMS
If you have already made a payment or given out personal information, it’s critical to take swift action to avoid being a victim of a crypto scam. Instantly inform your bank or official portal. Also you can report a social media crypto scam to the appropriate social media network. You can report crypto scams to the appropriate government agency in your area, such as the federal trade commission in the US depending on where you live. Other countries also have their articles.
All about, these are the common scams involved in the cryptocurrency market. Every crypto enthusiast is highly advised to never believe in hearsay, then research carefully before getting involved in such activities. As mentioned, scams are the biggest crypto scam.With these suggestions in mind, you can keep your money secure even when cryptocurrency fraud is rife.
By - Monika Gupta