Are you considering getting into trading cryptocurrency? It’s easy to see why.
The platforms are often more affordable, make it easier and faster to exchange money, and rely on easy-to-use interfaces that those who are just learning to invest can take advantage of.
However, it’s not without its downsides. The currency can take some patience to work with if you want to earn any significant income, and like most types of investments, it can be easy to fall victim to scams if you aren’t careful.
Luckily, understanding what to watch for can help you trade safely.
OKX Crypto Exchange and other exchange platforms do their best to ensure their tradeable coins are safe, but because anyone can create one (there are even tutorials on the internet), it’s not a perfect science.
Knowing who is sponsoring the coin, you’re interested in trading can help weed out would-be thieves from legitimate cryptocurrency creators.
Go beyond simply learning the name of the founders, too. Verify their identities, look into their background stories, and determine whether there is anything evil in their backgrounds. If there is, find another coin to invest in.
You can also investigate the coin itself with tools such as smart contract audits. These audits look into the coin to ensure no malicious codes could enable would-be criminals to steal your money.
If you cannot find enough information on the coin or its founders, keep looking. Anonymous coins are often exit scams or rug-pull scams meant to allow anonymous people to steal your investment and run.
Know how to watch for phishing scams
Like any other technology, cryptocurrency exchanges and other crypto-based platforms can fall victim to phishing scams.
Phishing occurs when a cybercriminal creates a website that looks exactly like the actual website but is not safe and means taking your money without you ever seeing a return on your investment.
Always verify that the URL you’re visiting is the one you mean to be on. Also, look for slight spelling discrepancies or differences in the domain extensions, such as using .net when the actual website uses .com.
Crypto phishing also tends to target online wallets. You must have a private key to access the funds in your online crypto wallet. In addition to fake websites, they may send fake emails that appear to come from your usual websites.
Never click an email or text link to input your wallet access keys. Instead, always navigate the website to ensure you aren’t unwittingly giving a scammer your information.
Go with your gut
From fake apps and crypto exchanges to dating-based scams and Ponzi schemes, there is a wide variety of crypto scams. Remember that it probably is if something seems too good to be true. Always go with your gut.
When you know what to look out for to avoid being scammed, trading cryptocurrency can be an excellent small-time investment that can help you get your foot in the door with creating a financial portfolio.
Doing your research, doing what you can to avoid phishing scams, and following your gut feelings will help to protect you.
Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.