Quite a lot to take in, isn’t it? What can I say? The world’s a wonderful place; the question is now how can one protect himself against these threats. Check out these awesome tips.
Research, research, and even more research
The best way to avoid cryptocurrency fraud is to do your homework before investing your crypto coins. There’s plenty to choose from – in fact, there are over 500 online exchanges.
So, in order to avoid being scammed, take your time to research the exchanges: read their blogs, look at the conversion rates, gains, ICOs, over-the-web security protocols. For extra safety, you could shoot an email to support or a company’s representative to ask about the exchange.
Figure out a way to store your cryptocurrency
Buying and trading crypto coin is only the first step. Next along the lien would be figuring out a way to store your digital assets. So far, there are two ways to store cryptocurrency: working through exchanges and digital wallets.
Exchanges work very much like traditional banks: they offer deposits, accounts, and, of course, charge fees for deposit management and transactions.
As for the second storage method, digital wallets are to cryptocurrency what Revolut and Payoneer are to fiat currencies. Evidently, the decision’s entirely up to you.
Know the tell-tale signs of fraudulent ICOs
As you might have figured out by now, fake ICOs are a scammer’s weapons of choice. Of course, none of this would be possible without someone naïve enough to believe this stuff.
Anyway, in the case of ICOs, you can easily figure out if the project’s legit or fake by taking a closer look at the white paper for signs of forgery. These include:
Fraudsters are more likely to copy an entire white-paper and pass it as their own rather than writing the whole thing from scratch. Just copy-paste the whole things into Google and the search button. If
NO TEAM MEMBERS
Most exchange presentation websites feature a media section that contains info about the members of the team. Look for any inconsistencies: incomplete descriptions, stock photos, odd-looking contact details.
The websites would look like they were made in a hurry. You know what I’m talking about.
Since these websites were made for one purpose and one purpose only, it’s obvious that the person or persons behind the scheme won’t spend time worrying about details such as blog posts, landing pages, or newsletters. Take some time to read a post or two. Lack of proofreading alone should be a major red flag, one that may point out that the website is, indeed, fake.
STAFF RELUCTANT TO ANSWER TOUGH QUESTIONS
Even the most experienced scammer cannot dupe a crypto-savvy user. So, if you decide to get in touch with a member of staff, start asking questions. The more technical they are, the better. A legit employee will be in the position to answer every question related to the product, whereas a scammer might eschew them.