Common Cryptocurrency Scams and How to Avoid Them
As you become involved in the new digital monetary mechanisms known as cryptocurrency, it doesn’t take long to recognize there’s risk involved in these transactions. And we’re not talking about the volatility of the market. Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibilities of losing your cryptocurrency investments.
When you’re looking into digital cryptocurrency companies and startups, experts recommend that you confirm that they’re blockchain-powered, which means they track detailed transaction data. Also, check that they have solid business plans that solve real problems. Companies should specify their digital currency liquidity and ICO rules. There should be real people behind the company. If the startup you’re investigating lacks some of these characteristics, think through your decision even more carefully.
Here’s in a look at the more common scams and ways to avoid becoming a victim as you join the exciting future of cryptocurrency.
1- Imposter Websites
You might also be following a strong tip from any person with a lot of understanding however nevertheless become a victim by means of accidently visiting a faux website. There’s a stunning range of websites that have been set up to resemble original, legitimate startup companies. If there is not a small lock icon indicating security close to the URL bar and no “https” in the website online tackle think twice.
Even if the web site appears equal to the one you assume you’re visiting, you may also discover yourself directed to every other platform for payment. For example, you click on on a hyperlink that appears like a official site, however attackers have created a pretend URL with a zero in it rather of a letter ‘o’. That platform, of course, isn’t always taking you to the cryptocurrency investment that you’ve got already researched. To avoid this, carefully type the actual URL into your browser. Double take a look at it, too.
2- Fake Mobile Apps
Another common way scammers trick cryptocurrency investors is through fake apps available for download through Google Play and the Apple App Store. Although stakeholders can often quickly find these fake apps and get them removed, that doesn’t mean the apps aren’t impacting many bottom lines. Thousands of people have already downloaded fake cryptocurrency apps, reports Bitcoin News.
While this is a greater risk for Android users, every investor should be aware of the possibility. Are there obvious misspellings in the copy or even the name of the app? Does the branding look inauthentic with strange coloring or an incorrect logo? Take note and reconsider downloading.
3- Bad Tweets and Other Social Media Updates
If you’re following celebrities and executives on social media, you can’t be sure that you’re not following impostor accounts. The same applies to cryptocurrencies, where malicious, impersonating bots are rampant. Don’t trust offers that come from Twitter or Facebook, especially if there seems to be an impossible result. Fake accounts are everywhere.
4- Scamming Emails
Even if it appears precisely like an electronic mail you obtained from a legitimate cryptocurrency company, take care earlier than investing your digital currency. Is the e-mail the specific same, and are the brand and branding identical? Can you affirm that the e mail tackle is legitimately linked to the company? The potential to test on this is one motive why it is essential to pick a employer that has actual humans working for it. If you have doubts about an email, ask anyone who works there. And by no means click on a hyperlink in a message to get to a site. Scammers frequently announce faux ICOs, or initial coin offerings, as a way to steal full-size funds. Don’t fall for these faux electronic mail and website offers.