Essential Tips to Avoid Crypto Scams

Crypto Frauds

The cryptocurrency market and it ecosystem is full of lucrative investment, but frauds and other security flaws continue to hinder the system. Therefore, it's most essential to learn how to avoid crypto frauds in our community.

In this post, I've discussed ways to protect yourself from falling victim to cryptocurrency fraud and how to keep your personal crypto information uncompromised.

Ways to Avoid Crypto Frauds

Here are security tips to protect and keep your yourself from falling victim to crypto scams.

Beware of Phishing Emails

This is the first security tips I will be discussing in this post because sending of phishing emails is one of the common ways scammers obtain your crypto information which can be used to get access to your cryptocurrency wallet.

Therefore, to avoid crypto frauds, be conscious of thieving emails and mind the kind of link you click click in Email. Hackers are getting more sophisticated in their attempts to gain access to sensitive information via phishing.

Fraud phishing emails are often appear like a reputable or real businesses which will make them difficult to spot. However, you can identify them via the following;

  • Before clicking on any link in received email especially a mail sent to spam folder, verify the domain name of the company. 
  • Confirm and verify any email that request confirmation or submission of sensitive information.
  • Treat any attachments from unknown emails with suspicion because they can contain malware.
  • Move fraud email to spam folder if detected, or you can either block them.

If you can make use of those security tips highlighted above, you will surpass any Phishing Emails.

Use a Programme to Clean your Digital Footprint.

Using a Programme to cover your activities on the internet is another way to avoid crypto frauds. Almost everything you do on the internet is on record. In other words, information you enter on social media accounts, things you search for on Google, Bing or Yahoo, login details, and so on are all stored.

Hackers may use these to crack your private and personal data. Therefore, your crypto assets’ safety is at risk. So you should block this internet loophole at all means to avoid crypto fraud.

However, you can hide your digital footprint using a virtual private network (VPN). This way, you hide and clean your internet tracks and also prevent third parties like hackers from monitoring your online presence.

Determine the Validity of ICO

Investment and Trading are two different crypto phenomenal entirely. However, Initial Coin Offering (ICO) dived into the trading realm since they are mostly used by those with low trading experience.

In other words, there are lots of promising ICO artist out there. So it's hard for inexperienced traders and investors to resist their allure and this is where they fall victim to crypto scam.

However, you can use the following to spot out not-genuines ICOs;

  • Verifying the ICO has sufficient resources, a workable implementation plan, and an accurate financial model.
  • Inquiring about code or examples that have been posted to a hosting service like GitHub.
  • Do research on deals that look too good to be true.
  • Ensure the ICO’s creators you want to invest or trade with have established an actual escrow service to handle investor funds.
  • Go through their social media pages for legitimate.
  • Do research about the company history.

Turn on Two Factor Authentication

You can limit the use of your API keys simply by turning on two factor authentication. This improve the safety of your online presence and limit the excessive usage of your API key which may leak if it wisely used.

In other words, it's advisable to enhance the security of your crypto wallet with another piece of information such as two-factor authentication other than passwords.

However, using SMS 2FA isn’t advisable nowadays because there is possibility for interception. Instead, crypto experts recommend Google Authenticator, surprisingly, the software works even without an internet connection.

In addition, limiting access to your API keys from specific IP addresses is also important if you’re engaging a third-party app to facilitate and aid your trades. That way, even if someone discovers your keys, they’ll be unable to access your account.

Don't store all your Asset at a Exchange

Hackers also fraud cryptocurrency platforms and exchanges. In 2019, scammers compromised Bitrue - Singapore Cryptocurrency Exchange Platform, and stole almost $4.2 Millions worth of Bitcoin

Therefore, if such an establishment crypto platform could be scammed, you have to be careful and distribute your crypto assets to two or three trusted exchanges.

Mostly, hackers target cryptocurrency exchange platforms and their security vulnerabilities, many of their user accounts will be frozen or perhaps compromised as a result. However, trust no Exchange with your tokens. Instead, put it away and distribute it in a secure wallets.

The followings are examples and recommendation of secure wallets that can be used to store your crypto assets:

  • Cold wallet
  • Hot wallet
  • Paper wallet
  • Mobile wallet

Crypto Forensics recommends a cold wallet(also known as a hardware wallet). In it, your keys are safely stored in a non-connected device and non-internet connected device. In other words, thanks to a Secure Element (SE) chip.

Final Thought

Use any strategies to keep your self away from cryptocurrency fraud and hacker's fraudlent activities. Hacking skills is getting even more advance, but taking basic security measures will keep you a step ahead in your crypto journey.

Morichgan

Hello! My name is Morichgan . I'm a content writer. I write stories about Finance, Businesess and Technology. Contact me via the contact page. Thanks.

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