Is bitcoin a safe investment option
Top 4 cryptocurrency scams and how to avoid them
Anyone who deals with the field of cryptocurrencies will quickly notice that these transactions are associated with some risks. We're not even talking about how volatile the market for these currencies is. There are many different scams in the online world and cryptocurrencies are no exception. If you want to invest in startups and stock exchange platforms, you must be aware that you can lose all of your investments.
According to experts, you should therefore opt for cryptocurrencies and associated providers that are based on blockchain technology. Because this is how the transaction data is logged in detail. Additionally, make sure that companies you invest in have a solid business plan in place to solve real problems. It is also important that these companies can prove their liquidity in the corresponding currency and compliance with the ICO rules (Initial Coin Offering). Last but not least, there should be real people behind the provider. If the company you choose does not meet these requirements, you should reconsider your choice.
Below is a list of popular cryptocurrency scams and how you can protect yourself from them.
1- Fake websites
Even if you follow a tip from someone who is knowledgeable about cryptocurrencies, you can end up on a fake website. There are a surprising number of websites that mimic the sites of legitimate startups. On these pages, however, the small lock symbol in the address line that indicates the use of the HTTPS protocol is missing - a clear warning sign.
Because even if the page looks exactly like the original, you may be redirected to another platform when paying. For example, you click on a supposedly legitimate link that leads to a fake URL with a zero instead of an "O". Of course, the relevant platform will not take you to the investment option that you actually decided on. To avoid this problem, always enter URLs manually in your browser. Also, you'd better double-check the address before hitting Enter.
2- fake apps
Another popular scam is fake apps that can be downloaded from Google Play or the Apple App Store. Because even though these apps are often found and removed quickly, they can still cause financial damage. According to Bitcoin News, thousands of users have already downloaded such fake apps for cryptocurrencies.
While the risk for Android users is higher, investors with other platforms should also be aware of the risks. Does the description or even the name of the app have any obvious misspellings? Does the branding look strange, e.g. B. because of different colors or a wrong logo? Look out for signs and, if in doubt, reconsider downloading the app.
3- Weird tweets and other social media posts
If you follow stars and managers on social networks, there is a risk that they are in truth copycat. The same goes for cryptocurrencies, where malicious bots impersonate legitimate accounts. Don't trust offers you get on Twitter and Facebook - especially if they're too good to be true. Because fake accounts can be found everywhere.
If someone asks you to pay for cryptocurrencies on these platforms - even if they are only small amounts - you will probably not see that money again. Even if you believe that this offer is legitimate because other users are also reacting to it, remember: These users can also be bots. So you need to be extremely careful here.
4- Fraudulent emails
Even if email looks like it came from a legitimate cryptocurrency provider, be careful. Is the email the same as any other communication, including the logo and branding? Can you verify that the email address really belongs to the alleged company? It is precisely in order to check such factors that you should choose a provider with real people behind it. Because in this way you can contact these people directly in case of doubt. In addition, never call up links to go to the relevant pages.
Cyber criminals often advertise fabricated ICOs in order to steal significant amounts. Do not fall for the corresponding offers in emails and on websites. Instead, carefully review the listing details.
Unfortunately, there are numerous methods that cyber criminals can use to exploit insecure computing systems to mine or steal cryptocurrencies. So do plenty of research on how to protect yourself before investing in this new market.
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