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How To Spot And Avoid 4 Common Crypto Scams

 

With the tsunamic wave of digital currency and its quick adoption, there seem to be so many complex concepts that surround its operations and transactions. From multiple kinds of crypto such as Bitcoin, Binance, Ethereum, Litcoin, Dogecoin, and so on, to several functions of crypto such as trading, exchange, savings and online payments.


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Due to the high rate of scams and fraud experienced in cryptocurrency exchanges, several people see investment in crypto as a bad investment. Most often, crypto experts often advise that investors should always invest in crypto startups whose operational mode is blockchain-powered and cloud-powered for easy tracking of transactions and real-time data.

Furthermore, experts have also advised that companies should specify their liquidity and ICO rules. Cryptocurrency start-ups should be ready to be run by real people who are truly offering real solutions. In this article, I am going to highlight four common cryptocurrency scams and how to avoid them.

  1. Imposter Websites

The most common scams in the cryptocurrency world are imposter websites, which even the best of crypto experts and as well greenhorns can fall victim to. Countless websites claim to offer solutions such as Bitcoin trading, crypto savings and crypto exchanges and so many of them, resembling original and valid start-ups.

One of the ways to avoid being a victim of these numerous fake cryptocurrency websites is to carry-out technical background checks such as if there isn’t a small lock icon indicating security near the URL bar and no “HTTPS” in the site address, you have to be sceptical about such websites. Nevertheless, don’t be deceived by the sophistication of these scam websites which often take the identity of original and popular websites. Be sceptical about cryptocurrency sites that redirect you to another platform for payment. For example, be careful of attackers websites whose website URL replaces ‘o’ with zero. Avoid such websites.

  1. Fake Mobile Apps

With several FinTech start-ups littering the market and internet space, predator start-ups often use apps to create a sense of validation and genuineness in the minds of crypto traders and users. However, simply because a start-up owns an app doesn’t make it valid for a crypto business. There are hundreds of scam apps on Google Play, Apple App Store and iOS app store. Although, it is been established that cryptocurrency stakeholders often identify these fake apps are brought down, however, people still trade with these scam apps because thousands of people have already downloaded these attack apps according to Bitcoin News.


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The best way to avoid being a victim of a fake app is by reading reviews for these apps that are made available on the app store and spot red flags such as recurring complaints of scams, poor services and general low ratings by users. Also, look out for misspellings and copycat apps that want to appear like well-known and valid cryptocurrency start-ups.

  1. Scamming Emails

Beware of unsolicited emails that look valid as though from a legitimate cryptocurrency company. It is advised that you should know your digital currency books before investing in any cryptocurrency start-ups or carry-out trading, savings or exchanges. There are cases where these scammers use logos and trademarks of popular brands to craft their emails.

It is important to open websites and see if they are related to genuine, popular cryptocurrency companies. If it redirects you elsewhere other than official websites of popular brands, avoid any transaction with these emailed sites. Be sceptical about emails that call for initial coin offerings (ICO) which wants you to either trade or buy coins. You might fall victim to crypto fraud if you aren’t well-groundedd in the business of cryptocurrency.

Furthermore, never do business with crypto that has no real people working for it and providing real life solutions. Also, if these companies are not in the federal government recognition books or have been blacklisted by the regulatory bodies of the state.

  1. Noise Tweets And Bandwagon Social Media Updates

There is so much noise on social media where people are forced to make decisions to buy or trade under pressure. Most of these Tweets and posts claim expert advice. Some of these twitterers are influencers and celebrities who know next to nothing about cryptocurrency. Some of these influencers are recruited by crypto scammers to do paid adadvert. Furthermore, there are a lot of impersonation bots that are malicious, asking Twitter users to invest coins in several shitcoins and altcoins. Taking such action might be injurious.

A Final Word

If you are interested in investing in cryptocurrency, it’s advised you seek expert advise, learn the intricacies of crypto on various platforms, including YouTube, look for verified and respected teachers to tell you what cryptocurrency is all about in the most simplistic terms. Also, rather than relying on social media for crypto knowledge, it’s advised to read expert reviews on both academic and industry journals and magazines.

Featured Image Source: Bitcoin News


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Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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