Now that crypto has become more popular than ever, there have been reports in social media and in the local news about scams that left users & investors with a bad experience. And it’s annoying that people are blaming crypto for it which is a poor excuse for their lack of research or education about the matter.
As digital currencies continue to grow in popularity, they are reaching a higher profile than they ever have yet at the same time the fraudulent schemes around cryptocurrency and digital coins have continued apace. With some levels of cyber-criminality being managed relatively well in parts of Europe, many consumers are still not immune to crypto scams.
Some crypto scam examples worth noting for discernment include asking for money without any proof, increasing the threshold with each e-mail, and high-pressure emails requesting urgent action and refunds.
The line between success and failure is blurred, we wish to come across as accomplished people in today’s society. Scams still lead to huge financial losses. It might be hard for you to recognize such scams in time and change your course of action about what you need.
The following are some of the top cyber frauds with the highest financial loss:
- phishing
- email spoofs
- unsolicited e-mails
- Internet job scams
- car “lotteries”
- chain letters
- “missed minimum charge notices” payment plans contributing to overdraft fees or bank account seizures (e.g., identity theft)
- virtual games/contests leading to consolation prizes that incentivize bad behavior such as not paying taxes)
- fake billing systems & services disrupting communications channels such as iCloud backups and Gmail archives)
- ICO that appears too good and legitimate at initial stages but later on turns out worst than scams such as Mt Gox & Bancor Wallet Token Exchange
So, before investing in any kind of crypto project, here are some tips that will help you make the best judgment before your next move:
1) "DYOR" - Do Your Own Research
Anyone who is considering trading in cryptocurrencies should examine their understanding and perspective on the risks before jumping into investing.
Before you make an important decision that would be largely personal, it is necessary to research and understand the pros and cons of that decision. There is no way you can go with a decision now if you don't know how much cryptocurrency will make sense for your personal financial prosperity down the line.
By performing due diligence on the company's past performance, you will understand how much certainty they create before making any large investments or commitments.
2) Learn about the technical side of the crypto project
A lot of crypto projects are using their whitepaper as an online business plan. A clean, correct, and professional-looking whitepaper can benefit you when you are in your search to find all the things you need to build and more importantly learn more about ICO investing.
A whitepaper is not just one of a copywriter’s many job duties but is also important to investors as a way to decide if you're looking for leading-edge opportunities.
In order for your paper to be meaningful, you have to have something tangible and it has to be able to influence someone's life positively. There's nothing wrong with just creating documents and providing professional recommendations. But by doing so, you are also sacrificing your potential of reaching more people with your business.
The first guideline should be that the paper has got something substantial and real at its basis that makes an impact on society positively in terms of business or someone’s life or significantly advances society in general.
3) Deal with the right Crypto Exchanges
Everyone desires either financial freedom or wealth. However, you face many risks with these because it takes an immense amount of time and luck. The best way to avoid these risks is to use reputable exchanges such as Kraken, Coinbase Exchange, and Poloniex. They are known for not offering fake coin offerings and scams.
These exchanges have strict listing requirements in order to allow the company that they represent, to utilize their services with integrity. Coinbase will only list tokens on the exchange if there is a pre-established use case and a working prototype of their product or its first release in a new market along with detailed distribution plans recorded as part of an audited account audit before they will list anything on their site.
4) Secure your Private Keys!!!
Stay organized, educated, and most importantly aware of how easily stolen Bitcoin private keys could take away all the money you thought you had saved.
A multitude of precautions should really be taken by transacting cryptocurrency, especially since personal identities can be stolen with 3rd party personal information, data breaches, and thefts. The underlying value of virtually everything is derived from its monetary value so there is always a risk that can be destroyed instantly with the theft of one private key(s).
Static protection measures include password strength tests on small scales which are not very reliable. So other security measures like key recovery techniques for successful mistakes which erase cryptographic material to recover your account should be considered by anyone who’s transacting crypto exchanges in higher amounts.
Having a secure private key means that you’re as close to “being your own bank” as an individual can possibly get.
You don’t give this set of personal keys and passphrases to Apple when they process your credit card. You don’t even tell the credit card companies that they hold this power over you.
Growing your own wealth in cryptocurrency is not as hard as it sounds, especially with some major cryptocurrency investments lately. There are many reasons for looking into the world of crypto even if you don't think it's an investment opportunity at first glance One reason that many people are studying right now is the potential of cryptocurrencies in regard to financial freedom. Cryptocurrency investment strategies allow investors to learn specific significant patterns or sequences as an indicator of likely future returns on their fund.
Although many recent blockchain trends in social media and personal lives may seem attractive, investing in cryptocurrencies or ICOs can be risky. In the age of the internet, it’s easy for scams to exist, so protect yourself by creating a team of long-term friends you trust, and don’t let these virtual currencies eat away at your finances.
Although everything seems to be going great at first, you need to know that most promise never becomes reality. Johnson Kenneth this is especially true with investing. Most people hope that their investment will last for a long period of time, but we all know that isn’t possible. As with any type of work, you might find yourself getting frustrated at some point.
