Cryptocurrency has certainly been an incredible technological advancement. however, like most things run on the internet, there is always a risk. Hackers and scammers are becoming more and more sneaky. Because it is even possible to buy Bitcoin with credit card it’s essential that you always keep an eye out. In this article, we are going to talk about some of the common cryptocurrency scams that you should watch out for. Let’s get started!
Fake exchanges
One of the biggest cryptocurrency scams currently on the web is the creation of fake exchanges. These websites might look real; however, they can steal both your funds and identity when you enter in information.
To avoid these exchanges, research reputable sites before you start investing. You should also make sure you are never pressured by any of their representatives, and never download suspicious applications on your phone.
Phishing emails
While phishing emails are typically associated with banks, they have also made their way into the cryptocurrency world. These emails might look like they are from an exchange or wallet provider; however, they are a scam to get your information.
To avoid these scams, remember never to disclose your private key. It would be best if you also kept an eye out for suspicious URLs or links included in the email that will take you to false websites. Spelling mistakes are also a good indicator that the email is not genuine.
Ponzi/Pyramid schemes
Ponzi and Pyramid schemes are different but do fall under the same tree. Their main goal is to con you into believing they are offering a great deal. Once invested, the money you pay is then often given to initial investors and so on. So if you buy bitcoin in USA, Ponzi and Pyramid Schemes are something you should always look out for. If it seems too good to be true, it probably is!
Fake social media accounts
Similar to phishing emails, fake social media accounts are created to try and encourage others to invest in specific scams. For example, an individual might post how they made $100,000 in just a few weeks using a particular method. However, when you often look into this, it is often another way to steal your information. To avoid this, never click on any suspicious links, and report the individuals to the website.
Unregulated brokers
If you use a broker or financial advisor to manage your investments, you must make sure they are experienced and professional. Unregulated brokers can scam individuals by offering them advice that is not in their best interest. For example, they might pressure you into investing in a particular cryptocurrency, causing you to lose finances. To avoid this, always check that they are from a regulated company, and never say yes to something without getting all the facts first.
And that’s it! These were six common cryptocurrency scams that you should watch out for. As an extra precaution, you should ensure that all of your digital devices have cybersecurity software installed on them and keep your funds secure in a digital wallet. This way, you can prevent scams and keep both your identity and money safe. Good luck!