Tips on How to Avoid Cryptocurrency Scams

The amount of money changing hands in the global cryptocurrency market is increasing exponentially, moving towards $1 trillion in value. Not surprisingly, this large amount of money attracts people running scams. Cryptocurrency is a loosely regulated environment, and it’s global, so criminals and unscrupulous individuals have found ways to dupe investors and avoid prosecution and other negative consequences. Investors should follow these guidelines for avoiding cryptocurrency scams:

Find Reputable Investment Vehicles

There are hundreds of Bitcoin and cryptocurrency exchanges and wallet providers in the marketplace, which makes it difficult for investors to weed out the disreputable from the legitimate. Millions of recent cryptocurrency investors use services such as Coinbase, which enables credit and debit card purchasing. Coinbase allows users to create secure wallets and rely on the technology offered by an established and reputable firm. Avoid picking a wallet provider or exchange that hasn’t been around for a few years. Also, perform a quick online search to see if an exchange or wallet provider you are considering has been the subject of a breach or other security problem.

Some fake exchanges and wallet providers will create websites and landing pages that look like legitimate outfits, but are actually counterfeit. It’s a form of phishing scheme where the crooks simply want personal information and payment data. Investors should not be so eager to cash in on cryptocurrency gains that they forget common sense and the need for proper due diligence.

Avoid Most ICOs

Initial Coin Offerings (ICOs) are a way for companies to raise (potentially massive) funds through the offering of their own cryptocurrency token in exchange for cash or another established currency. These ICOs offer the promise of returns for investors, but they’re also fraught with scammers. It’s relatively easy for scammers to create a fake company and generate interest in a technology or service in advance of a fraudulent ICO. The Securities And Exchange Commission (SEC) and other agencies are clamping down on ICO fraud by halting funding rounds and exposing scammers with criminal backgrounds.

Watch out for Crypto-Malware

Hackers have developed malware that infects a user’s computer not for the purpose of stealing credit card or personal data, but to actively steal Bitcoin. This malware works by taking the user’s wallet credentials or interrupting and stealing future transactions.

Another type of malware sits silently on computers and smartphones, infiltrating web browsers and using your processing power to conduct cryptocurrency mining for the hacking organization. This stealthy type of attack can involve hundreds of thousands of machines and provides the hackers/miners with a powerful tool to generate cryptocurrency.

Avoiding cryptocurrency scams means doing your homework and staying away from “too good to be true” claims. One way to gain more exposure to cryptocurrency is by investing through IRA companies that securely offer long-term-focused investments in Bitcoin, Ethereum, Litecoin, and other established cryptocurrencies.

Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Social Realities, Social Casualties
How Tyga Achieved a Net Worth of $2 Million
10 Things You Didn’t Know about Albertsons CEO Robert Miller
Will a Company like GameStop Be Around in 20 Years?
Can You Pay Off Student Loans With a Credit Card?
How Does Layaway Actually Work?
When Should You Start an Allowance for Kids?
10 Benefits of Having an Indigo Credit Card
Storyball: The World’s Smartest Screen Free Toy
OKO: Simple Solution for Better Smartphone Photography
The 6 Most Disturbing Data Breaches of 2018
A Trillion Dollars: In the Palm of Your Hand
The 10 Best AccorHotel Properties in Europe
The 10 Best Omni Hotels in the United States
The 5 Best Places to Get Pizza in Columbus, OH
10 Things To Do In Fort Worth, TX for First Time Visitors
10 Things You Didn’t Know About the Lexus LC 500
The History and Evolution of the Infiniti Q50
The History and Evolution of the Bentley Arnage
10 Things You Didn’t Know About the Cadillac CT6
The Top Five Hugo Boss Watches Available Today
The 10 Best Pilot Watches for Under $500
The Five Best Doxa Watches on the Market Today
The Five Best Vestal Watches on the Market Today