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How to Protect Yourself from Cryptocurrency Scams?

How cryptocurrency scams work

How does cryptocurrency work?

Cryptocurrency is a digital currency that is based on blockchain technology. It is a decentralized system that is operated by a network of nodes spread across the globe. It is essentially a distributed ledger wherein every computer maintains its own copy of the blockchain, each of which gets updated after any transaction that takes place across the network. This system of money only exists virtually on the web, sans any physical or tangible presence. Crypto is the first successful attempt at creating a viable alternative to mainstream currencies, devoid of any centralized control by governments or powerful financial organizations.

 Also read: A Step-by-step Guide on Security.

Cryptocurrency Scams: Safeguard yourself against them!

Crypto is an advanced currency with obvious benefits, such as direct peer-to-peer transactions and the opportunity for crypto-to-crypto trade on the market. Due to increasing awareness about cryptocurrency, investor interest is on the rise but so are nefarious acts by scam artists. Everything on the internet is prone to cyber attacks, and cryptocurrency is no exception, owing to its online nature. Most victims of such attacks end up in compromised situations because of errors in judgement. By being a little extra cautious, however, it is possible to avert an inadvertent error resulting in financial losses. Therefore, it is important to be aware of such malpractices and use the right safeguards against them. 

Do your research

Carry out independent research about the team behind any crypto project before you bet your buck on it. Be extra careful in case of Initial Coin Offerings (ICOs) to make sure that there are real people backing the initiative with the right intentions. There have been unpleasant cases in the past, such as the one in 2017 where the U.S. Securities and Exchange Commission (SEC) had to shut down PlexCoin which had raised over $15 million on fraudulent claims. Safeguards can include carefully studying the whitepaper to ensure that it addresses all potential doubts of the investor. Any suspected attempt at hiding important information from the investors should be viewed with utmost suspicion. 

Beware of impostors

Among the most common ways of cheating crypto investors is through imposter websites. It is important to ensure that the site that you’re viewing on your browser is indeed the official website that it claims to be. There is a chance that you could be taken to a fake website by being asked to click on a link. Therefore, always double-check for web security features such as a small lock icon and ‘https’ in the site address bar. The internet is a largely unregulated space and that can sometimes go against our best interests. 

Keep an eye out for fake apps

Another common way that fraudsters use is to plant fake cryptocurrency apps in the App Store or Play Store. And while they often don’t get to stay there for long, these apps are capable of achieving considerable downloads in their short existence. One needs to be protected against this scam by staying alert of small signs such as an alteration in the company logo or even a minor aberration in the name of the company.

 Don’t let them spam scam you!

Spam is a great scam tool, so be weary of such illegitimate emails. Stay away from enticing offers that these emails bring for you, especially if they are too good to be true. As a general rule, try not to visit webpages by clicking on links that you are prompted to in these emails. 

Don’t get too social

Social media is a popular platform used by scammers to deceive the public and rob them of crypto assets. As a basic security measure, always question everything that you see on social media, including posts or tweets that demand cryptocurrency payments. Bots and malicious accounts could be employed for promoting crypto fake offers, so be cautious of such misleading content. 

What makes CoinDCX the safest bitcoin app in India?

Crypto assets once lost can be impossible to retrieve, hence, users must be extra careful about what platforms to trust with their cryptocurrency. In such a case, CoinDCX emerges as the obvious choice for both new and seasoned traders, owing to its impenetrable security features. A cold wallet storage that prevents online hacks, withdrawal confirmations, and 2-factor authentication are measures that have been deployed keeping a user-first and security-first approach in mind, making it the safest bitcoin exchange. In addition, complete fund safety is ensured by BitGo. With a loyal user base of 57000+ monthly traders, CoinDCX is the most trustworthy platform for all your crypto needs. 

Also read: New improved Security Features at CoinDCX. 

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