Cryptocurrency is becoming a trendy way of investing, despite the value depreciation it has seen since the beginning of 2018. A lot of speculations are rife on the subject of cryptocurrency, especially to the certainty of the future of digital currency. Amidst the thoughts, many optimists are still sure of its favorable fortune and even invest in it. Especially, new cryptocurrencies which are just being introduced into the market, as there is a tendency to rise in value and high return, unlike already established cryptocurrencies.
However many have fallen victims of the rotten eggs of scams in an attempt to invest. The news of crypto scams has continued to trail the media of recent. Here are some helpful tips to avoid fake investment and scams.
Conduct A Research Before Investment
Before investing in any cryptocurrency, investigating about the crypto is very necessary, more especially because of fake and dubious ICO sales by scammers. ICO is an investment opportunity offered by new projects looking for those who will invest in them by purchasing their coins/tokens with the promise of a high return in no distant future.
One of the many fake ICO that has rocked the crypto world of recent is that of Plexicoin ICO; the bubble was later burst by Securities and Exchange Commission (SEC) after it was discovered that the founder is a scammer. The scam was broken after he had raised $15 million. So do proper research before dabbling into any crypto.
Be careful of Strange Redirection on Cryptocurrency Sites
Presently there are so many fake exchange sites out there, and equally with fake reviews online. Anyone can quickly fall victim to different ads redirection online. In June 2018 police arrested four persons for allegedly creating fake crypto exchange platforms.
To stay safe, whenever you are visiting any crypto site or exchange site, check the browser address correctly and from time to time to be secure in conducting a transaction.
Seek the opinion of the cryptocurrency community
Either as a new trader or a veteran investor before injecting your fund into any cryptocurrency, wisdom demands that you seek the idea, views of the crypto community about. There are many experts in the crypto community that can decipher and know the characteristics of scam, much especially as it pertains to the Ponzi scheme.
Through social media and also forums, discuss on a particular cryptocurrency project, one or two may have some guidelines to keep you safe.
Not All Cryptocurrency Wallet Apps are Safe
It is not all wallet apps that are safe for keeping your cryptocurrency. Many wallet apps make your cryptocurrency storage prone to hacking, which can lead to a loss.
To be on safer side, storage in a cold hardware wallet is better, as it helps you to keep it safe and can be connected to the internet whenever it is needed.
Be Careful of Social media referral links
As the social media can serve as a platform to decipher scams in cryptocurrency likewise, it can be a Waterloo to fall into a wrong hand with fake links leading to a site showing people receiving cryptocurrency into their account for doing absolutely nothing. Most of such are scams because they don’t fulfill their promises. But gather investments from people showing fake evidence of providing people cryptos.
To avoid those, avoid adverts of once in a lifetime opportunity or things that are just too fantastic to be true. Stay safe!
Hasty Decision Makes You Vulnerable
Making nasty decision makes you vulnerable to scams, especially with offers that are too true. Also never invest more than you are willing to lose because even the best projects could go wrong. To stay safe off cryptocurrency scams, be wise in your decision making by being careful.