Tips on How Not to Get Scammed in Crypto
Table of Contents
Cryptocurrencies are taking the world of finance by storm. This growth is so astonishing that cryptocurrencies are now a major investment for many citizens across the globe. However, given the popularity they’ve garnered over the last few years, cryptos have become an easy target for hackers and con artists.
With crypto scams increasing by around 516% in 2020 alone, the community of beginner investors continues to doubt its vulnerability. While the concerns are genuine, taking the right measures can prevent one from falling victim to such crypto scams.
But what are any measures that can keep you safe from scams?
Well, continue reading to find out more.
But Are Cryptocurrencies Safe?
There is no denying the fact that many people have lost fortunes because of crypto scams from all over the world. News reports suggest that crypto scammers managed to successfully hoard a record of $14 billion in 2021 alone. Further, 2021 also saw a 23% year-on-year increase in cryptojacking.
However, these instances were often the result of complacency on the investor’s part. Taking appropriate safety measures can actually prevent people from falling for such scams. Blockchain technology takes all measures to ensure the safety of investors, but fraudsters always manage to find a way around it.
Why Do People Fall Prey To Crypto Scams?
The primary reason people become the victim of crypto scams is the lack of awareness among investors. Fraudsters understand this very well, and they are never shy of using this to their advantage. This allows fraudsters to generate extensive gains with no effort whatsoever.
Fraudsters often lure people who are not very well-versed with the working principles of cryptocurrencies with appealing schemes.
These schemes are generally known for offering unrealistic returns on the investment before the scammer finally decides to sweep your account clean.
There have also been instances where shady coins were used to manipulate the price of cryptocurrencies. Cheap tricks like these allow the fraudsters to determine the coin’s value instead of the market. Thus, naive investors fall prey to the appealing return proposition promised by these shady coins and evidently couldn’t make money, they lose a ton of money.
Avoiding Crypto Scams Like a Pro
According to experts from the field, there is a simple principle behind avoiding crypto scams. Whenever you come across a proposition that promises returns that are just too good to be true, consider it a big red flag. Earning huge returns from crypto investments is not impossible, but it takes both time and effort.
Unfortunately, the proposition of spending both time and effort does not impress many, resulting in them opting for the shortcut. Nevertheless, this shortcut often costs them much more than would be expected. However, these scams can still be avoided by adopting certain measures that include:
1. Market Research
Before one gets into a crypto investment, it is important they swallow the hard pill and accept that crypto is complex. In addition, the fact that cryptocurrencies are relatively new does not help much. Hence spearheading crypto investments with little to no idea of how the market actually costs can cost people dearly.
Thus, it is highly recommended that you carry out extensive market research and understand the market. Make sure to dedicate both time and effort, and crypto will certainly reward you as long as you are patient enough to reap those rewards.
2. Establishing Investment Goals
Never forget the reason you developed an interest in crypto investment in the first place. Once you have that goal in your head, you need to devise an investment plan that will help you reach closer to that gradually.
Be certain about the returns you wish to gain through your investments and take measures that will help you gain those returns. Also, make sure to define if you want a long-term investment goal or a short-term one. This will help you augment your investments accordingly.
3. Find a Reliable Platform
There is no shortage of crypto trading platforms that will do their best to entice you with appealing offers. But wait! Before you rush to reap the benefits of those offers, take a deep breath and ask yourself if such returns are feasible. As long as you can answer that question without being dishonest to yourself, your chances of falling prey to crypto scams diminishes significantly.
Additionally, make sure to research the trading platform before choosing one. Read up on online reviews, seek consultation from experts, talk to people who are using the platform, and then make an informed decision. Platforms like Coingate accept crypto payments and are also known for their reliability. Thus, make sure to find a platform like this for your crypto investment.
Investing in crypto is an appealing proposition for many as there are chances you can gain extensive returns in a very short span of time. However, never rush into these decisions because greedy scammers are prepared to feast on your fortunes like a stealthy hunter in the wild. Therefore, take your time and leverage the aforementioned information to avoid crypto scams.