Scams are not new. If you’ve ever bought a fake Rolex or pretended to be someone you’re not on Tinder, then you know what they can do to your bank account and dignity. But scams involving cryptocurrencies are a whole other story and they’re only getting worse!
Cryptocurrencies are digital currencies that can be traded instantly and without the need for a third party like a bank. It provides an alternative to government-backed currencies. Bitcoin is the most popular cryptocurrency, but other types of cryptocurrencies exist, such as Litecoin, Ethereum, Ripple and more.
Like any other currency, these digital coins have value that can be traded online. But this doesn't mean they're all legit--scammers lurk in every corner of the internet waiting to steal your information and money. Here's how to avoid being taken for a ride by crypto scammers:
What are cryptocurrency scams?
Cryptocurrency scams are similar to the old-school type of fraud. It’s when someone offers something for sale that they don't have. The buyer sends cryptocurrency to a seller, who does not fulfill the order or provide the product or service.
The difference with these scams is that the currency being traded is digital, which means it's more difficult to trace and harder to get back if you do get scammed.
How to avoid crypto scams?
As you're sure to be aware, there are various types of scams in the cryptocurrency market. There are many methods that scammers use and they employ a wide range of deceptive tactics. One common scam is called phishing, which relies on tricking people into revealing sensitive information. If someone sends you a link claiming to lead to your bank and asks for more information, ignore it.
Another type of scam is called 'pump-and-dump.' This occurs when someone buys a stock and artificially increases its price with false statements about the company or product's value. To avoid being tricked by crypto scammers who try to make profits off your back, check out reviews about a coin before investing in it. Investing blindly can be risky--even if you do your research!
What you should know before using cryptocurrencies
There are many ways to use cryptocurrencies, but the most popular are by using them as a form of payment. Websites like Expedia and Dell accept Bitcoin for example, which allows more people to spend their coins without converting them into government-backed currencies. But what makes it important is that these transactions can't be reversed or hacked.
1. A cryptocurrency wallet is the equivalent to your bank account - it stores your digital currency like Bitcoin and gives you access to it within your account. You can only send or receive crypto coins if you have a crypto wallet, so if someone tries to take your coins without one, they won't be able to take anything at all.
2. Be wary of any links sent in emails or messages. Cryptocurrencies should never be sent through an email attachment because this often leads to scams - hackers will set up fake websites that mimic a site you're trying to log into, such as Google Drive or Amazon Web Services, and trick you into entering your login information on their site instead of the real one.
3. Know who you're giving money too! Cryptocurrencies offer anonymity in theory, but this doesn't mean that users are 100% safe from being scammed online - some sites work similar to eBay where sellers offer deals for what's called "overpriced" items with no intention of delivering them (eBay will usually remove these listings). The best way to avoid getting scammed by someone off the internet? Don't give
Cryptocurrencies, which are digital currencies, are often the target of scams, frauds, and security breaches.
In order to avoid getting scammed, it’s important to do your research and take precautions before using cryptocurrencies.
First things first, here’s what you should know before using cryptocurrencies:
-Cryptocurrencies are digital currencies that are encrypted and decentralized.
-Cryptocurrency wallets can be accessed from any device.
-Crypto-related scams include phishing, social engineering, and Ponzi schemes.
-When it comes to cryptocurrency, don’t buy into the hype.
-Fraudulent websites have been posing as crypto exchanges and ICOs.
-The safest way to store your crypto is by using a hardware wallet like Trezor or Ledger.
-Be wary of cryptocurrency exchanges that don’t require you to verify your identity.