The growing Crypto market places have allowed traders to deal in a wide range of cryptocurrencies. New marketplaces are developed every day. Also, new cryptocurrencies are introduced more often, giving more opportunities to crypto traders to earn lucrative profits.
All seem good from the front view, but if you have close attention to the data released by the Federal trade commission, you will be a little worried about investing in cryptocurrency online.
According to the FTC, thousands of people daily fall into the crypto scam. In the year 2021 alone, there were more than 46000 cases registered under cryptocurrency fraud. Different methods make users buy fake cryptocurrency or steal their wallets. All of these scams account for over $1 billion worth of loss.
As the demand for cryptocurrency rises, more high-level scammers are entering the game. When such data gets public, it increases the scarcity in the market. Investors are more worried about the development of such scams, with no way to stop them.
These scammers target mass users who follow common parts while trading in the crypto market. Identifying these scammers is tricky because every action is done through digital platforms. So there will be no trace of the attack after the money is lost.
The only way to secure your assets is to be aware of crypto scams so you will not become a victim.
#1. Research the company
When new crypto coins are introduced, wait to purchase them. The marketer will portray the currency as highly demanding in the group. But if you do your homework, you can identify the currency’s actual demand.
Doing research is vital before you invest in the cryptocurrency market. Sometimes the new launch will be backed by fake volatility to increase the market’s demand. Be aware of such activities because the crypto price will tank down abruptly after a few days of growth and touch the actual market price.
#2. Wallet security
Use only a secure platform to store your cryptocurrency. Almost all top crypto companies offer wallet services where you can buy and sell your cryptocurrencies. Some companies may charge fixed maintenance amount to provide you with the service. In contrast, others will have transaction-based charges. Whatever plan you choose for the wallet, ensure the website is authentic and trusted.
#3. Multiple authentications
Crypto companies are doing everything to keep hackers away from the platform. Multiple authentications for login and trading are the best way to secure your assets. OTP-based logins are more popular for securing your digital account. The hackers will never have access to your password plus the mobile OTP, which ensures the safety of your account.
Many new ways are introduced to keep the crypto wallet secure. Check what services your platform offers and obtain the service to prevent the thief from getting access to your digital account. Enable the features before you start dealing in crypto trading.
#4. Fishing pages
In many cases, the hacker does use fishing pages to trap crypto users. They make a similar-looking page that resembles the original crypto platform. These fishing pages will ask you to log in to your account to get bonuses or the best deal on the crypto. But when you observe the URL closely, you will find something fishy in the website’s name. Change in a few words will not be easily recognizable, but if you closely attend to the URL, you can identify the problem.
Staying alert about fishing is the only way to secure your crypto wallet. When you enter the username and password, your credentials are stolen, and the hacker will have access to your wallet. Once the hacker has your login credentials, he can move all your currency to his account, and you will have to deal with a significant loss.
#5. Fake Apps
Stay away from fake applications and marketing messages. There are several mobile applications out there that claim they give you the best deals on crypto investment if you use their platforms. The app uses lucrative deals to capture investors’ attention and manipulate personal information.
Fake applications also take your credentials to access your wallets. If you manage to access your wallets, the investment will be wiped out overnight, leaving you with nothing. So do not fall into the trap and be alert about the crypto scam. Always go for authentic application offers by reputed companies.
Top companies in the crypto business ensure the user’s privacy is maintained and data is stored on a secure server so no one will have access to it other than the authentic user. The app market is rising; thus, these hackers are leveraging the benefit of app users to perform crypto fraud. Do your research to find what users are recommending.
The Crypto industry will grow further, and more people will join the trading in the future. Therefore, hackers are already developing effective hacking mechanisms to fool people. Investors must be aware of the changing realm to stay in the safe zone. Your presence of mind will determine which side you fall on. So, follow the guidelines to stay safe while dealing in the crypto industry.