As you get involved in the new digital monetary mechanisms known as cryptocurrencies , it doesn’t take long to recognize that there is risk involved in these transactions. And we’re not referring to the volatility of the market.
Scams are everywhere online, and cryptocurrency exchanges are no exception. If you are considering investing in different startups and exchange platforms, consider the chances of losing your cryptocurrency investments.
If you want to look for digital cryptocurrency companies, experts recommend that you check that they operate on blockchain , which means that they keep detailed track of transactions.
Additionally, check that they have solid business plans that solve real problems. There should be real people behind the company. If the startup you are researching does not have any of these characteristics, consider your decision more carefully.
Below we've outlined the most common scams and ways to avoid becoming a victim as you join the exciting future of cryptocurrencies.
Common Bitcoin Scams
1. Imposter websites
You may be advised by someone with a lot of experience, and yet you accidentally end up on a fake website and become a victim of scam. There are a large number of websites created to look like genuine and valid startups. If there is no small lock icon near the URL bar indicating security and there is no “ HTTPS ” in the site address, think twice.
Even if the site looks identical to the one you think you're visiting, you may be directed to another platform to make the payment.
Here's an example: you click on a link that looks like a legitimate site, but the attackers have changed a zero instead of an "o" letter, creating a fake URL. Then that platform doesn't take you to the cryptocurrency investment you had already researched.
In such cases, it is best to carefully type the exact URL of the site you wish to visit into your browser. Double-check this as well.
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2. Fake mobile applications
Scammers are also tricking cryptocurrency investors by using fake apps that can be downloaded through the Apple App Store or Google Play. Even though these fake apps can often be found quickly and removed, it doesn’t mean they aren’t affecting many bottom lines. Fake cryptocurrency apps have been downloaded by thousands of people, Bitcoin News reports .
While this is a higher risk for Android customers, all investors need to be aware of the possibility. Are there spelling errors in the copy or even in the app name? Does the branding look unreal with odd colors or a different logo? Make a note of it and reconsider the download.
3. Bad tweets and other social media updates
On social media , by following celebrities and executives, you can't be sure they aren't imposter accounts. The same is true for cryptocurrencies, where malicious bots posing as fakes abound. Be wary of offers coming from Twitter or Facebook , especially if they seem to offer an impossible outcome. Fake accounts are everywhere. Even if someone on these platforms demands a small amount of your cryptocurrency, they probably won't be able to get it back. Just because it seems like more people are responding to the offer, don't assume they aren't bots. You have to be very careful.
4. Fraudulent emails
Even if it looks like an email you've received from a real cryptocurrency company, be very cautious about investing your digital currency. Is it really the same email, and are the logo and branding identical? Can you confirm that the email address is legitimately associated with the company? Being able to prove this is one of the reasons it's important to select a company that has real people working for it. If there's any doubt about an email, check with someone who works there. And never click on a link in a message to access a site.
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Scammers often advertise initial coin offerings as a way to steal substantial funds. Check these offers carefully and don't be fooled by fake websites and emails.
Unfortunately, there are many ways that some internet users exploit unsecured computer systems to mine or steal cryptocurrency. Before you start investing in cryptocurrency, make sure you learn more about how to stay safe and protect yourself in this emerging market.
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