Avoiding Potential Cryptocurrency Scams

With cryptocurrency becoming more popular around the world, people are using its popularity to scam people. Therefore, traders have to be very careful when purchasing cryptocurrencies. Otherwise, they may end up losing their money. Many people cannot afford to lose money so it could be financially crippling. Prevent this from happening by ensuring that you’re only dealing with reputable dealers and exchanges. The good news is that it isn’t difficult to avoid potential cryptocurrency scams.

You just need to know what you’re doing and who you’re dealing with. Below, you’ll learn more about cryptocurrency scams and you’ll find tips for avoiding them.

Biggest Scams

In 2022, cryptocurrency investors have been scammed out of billions of dollars. One of the most stunning scams took advantage of the Ukraine war. In March, the government of Ukraine decided to start a promotion for cryptocurrency donors. The country offered to airdrop crypto into the wallets of individuals who had donated. When someone donated to Ukraine, they would receive something free such as an NFT or cryptocurrency token. However, many people started sending minuscule sums to receive the freebie.

As a result, Ukraine backtracked on the decision and refused to airdrop freebies to donors. Another scam happened at the end of March when Axie Infinity was hacked. Surprisingly, the company behind the cryptocurrency game didn’t realize it $615 million had been stolen until it was far too late. Once a flaw was found on the Ronin blockchain, hackers were able to use it to steal money. Sky Mavis only discovered the issue when a user attempted to withdraw their funds to no avail.

Since the liquidity wasn’t available, they could not withdraw the money. Other scams this year include Day of Defeat and the stolen Bored Ape belonging to Seth Green. Suffice to say, millions have been stolen this year alone. It is essential to take steps to protect yourself from these scams.

Research Is Required

Before investing in cryptocurrency, people should visit websites that สอนเทรดคริปโต. After you’ve learned how to trade cryptocurrencies, it is time to begin investing. Although you’ll want to rush the process, you shouldn’t. If you do, there is a risk that you’re going to buy bad cryptocurrencies. Instead, you need to carefully research these investments to ensure that you’re going to have the potential to make money. Whether you’re buying into ICOs or purchasing Bitcoin, you should carefully research your options first.

Make sure that you’re not throwing away good money.

Be Careful Of Fake Websites

You have to be careful with fake websites. While there are many viable ICOs out there, others are scams. The purpose of the website varies. Some are setting up phishing scams so they can steal your information. For instance, you may be asked to log into your exchange account. Once you’ve done this, the website will steal your account. Before you know it, your Bitcoin will be missing. Other websites are going to steal your money.

If you deposit money into your account, you may never be able to withdraw it. Make sure that you’re dealing with reputable, trustworthy websites. Otherwise, you could lose everything.

Phishing Emails

If you’ve visited several cryptocurrency websites, you may receive emails about crypto. You have to be careful when dealing with these emails because they could be malicious spam. It is never a good idea to respond to unsolicited emails. You could be giving your private information to a scammer. If you give your information to a scammer, they’re likely going to drain your account and steal your money. Suffice to say, you have to be careful when dealing with cryptocurrency-related emails.

Make sure that they’re coming from legitimate websites. Otherwise, you could lose your money.

Pump & Dump Scams

Finally, you should be cautious about pump and dump scams. Whether you’re reading forums or social media, you’re likely going to see information about cryptocurrencies. Some people will promote specific cryptos on these platforms. If someone says the price is going to increase rapidly, you might be eager to take advantage of it. However, it could be a scam. The tip might be part of a pump and dump scam. The scammer will convince you and other traders to push the price of the cryptocurrency higher so they can sell and make money. Be careful when accepting tips on social media.