The cryptocurrency market is still in its infancy, and many people are getting wet. As a result, there are several scams that are currently targeting new investors in the space. It is essential to be aware of these scams, so you do not get caught up in one.
3 Tips to Avoid Being Scammed in Crypto
Here are three strategies you can use to steer clear of fraud in crypto:
1. Ignore Pump and Dumps
Pumps and dumps are common in cryptocurrency market, as they were in the stock market before them. A group of people will buy up all the coins of a certain coin at a low price, driving up its value. Then they will sell off their coins, causing the value to plummet for everyone who bought into it at a higher price than what they paid. Unfortunately, many people fall victim to this scam every day because they do not know how markets work or how pumps and dumps work.
2. Research Well
Before buying any cryptocurrency, do your homework by doing extensive research into its history, how it works, and its future potential. The more you know about the company or coin you buy, the less likely you will be taken advantage of by scammers who want to rip off unsuspecting investors like you.
3. Do Not Give Your Private Keys Away
Never give away your private keys or passwords for any reason — not even if someone claims they are from an exchange or wallet service and ask for them as part of a “verification” process or something similar. Many phishing websites have been popping up lately that look legitimate but are not; they are just trying to steal your funds by tricking you into revealing your private keys.
Well, there you have it: some of our best tips to avoid being scammed in crypto and keeping your crypto on the up and up. These strategies may seem simple—and that is because they are—but implementing them will help you make better decisions when handling your digital assets, which is no small feat. After all, nothing is more important than protecting what matters most in your life.
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