As cryptocurrency continues to rise in popularity, so do scams. In 2023 alone, over 300 fake crypto projects were recorded, with $4.5 billion lost to crypto investment scams.
This is a time when cryptocurrency buyers and investors must protect themselves and their digital assets from scammers.
In this article, we’ll explore eight ways you can protect yourself from crypto scams.
7 Ways to Avoid Crypto Scams
Do Your Research Before Investing
Don’t rush into investing in something you don’t understand. Always do thorough research first. When it comes to cryptocurrency, you need to look before you leap as it’s better to take your time and conduct extensive research than to rush in and regret it.
Seek verified expert advice before before you invest in any cryptocurrency. Don’t let a sense of urgency push you into putting your money into an unverified investment.
Do Not Share Your Private Keys With Anyone
Sharing your private key is like handing over your crypto, as it gives full access to your funds. If anyone asks for your private key during a cryptocurrency exchange, it’s a red flag. They are likely trying to scam you and take all your money.
If There’s No Risk, It’s Probably a Scam
The cryptocurrency market is highly volatile, meaning you could gain or lose money. So if someone guarantees huge returns with no risk, it’s a scam. Don’t fall for promises that sound too good to be true.
Beware of Unsolicited Calls
Scammers often give “crypto investment advice” through unsolicited phone calls. They make it seem like you’ll miss out on a great opportunity if you don’t act immediately. This is an attempt to exploit your fear of missing out (FOMO).
Remember, legitimate investments don’t pressure you into acting on the spot.
Ask Plenty of Questions Before Investing
This is why doing your research is so important. The more informed you are, the better questions you can ask, which increases your chances of detecting a scam. Don’t be afraid to dig deep and question everything before investing.
Beware of “Free Money” Offers
Crypto scammers often pose as celebrities or influencers, claiming that if you send them cryptocurrency, they will double it and send it back. In reality, this is a sham. Once you send your crypto, you’ll lose access to both the fake celebrity and your money.
Be Cautious on Dating Sites
Dating sites are a popular hunting ground for crypto scammers. They pretend to be interested in a genuine relationship, but eventually start offering “crypto investment advice.” Some may even subtly ask for your digital wallet details. Once you share this information, your money is gone for good.
Cryptocurrency scams are rampant, and there’s no sign of them slowing down. To avoid falling victim, ensure you take every possible precaution to secure your assets and stay vigilant against scammers.
