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How to Stay Away from Cryptocurrency Scams

If it’s good enough for Jack Dorsey, Elon Musk, and Tim Cook to win big in the crypto game, shouldn’t it be good enough for you? If you’ve got some cash to burn, we’ve got a guide to help you get started. However, you may lose your retirement assets to a cartoon dog or a “currency” attached to a popular streaming TV show with a few mouse clicks.

Cryptocurrency is a volatile market, with shifting prices, coin-based frauds, and disinformation from influencers, so be cautious. According to the Federal Trade Commission (FTC), cryptocurrency scams cost US customers more than $80 million in the six months between October and March 2020. The heists continue; just this month, the creators of the Squid Game cryptocurrency made off $3.38 million.

ALSO READ: Shiba Inu Ranks as the 12th Biggest Crypto by Market Cap in the World

While some frauds are easier to recognise, others are more subtle. And, because crypto doesn’t have the same safeguards as conventional currencies like the US dollar, once that money is gone, it’s gone for good. Here’s what to be on the lookout for, as well as how to prevent being conned.

How to Stay Away from Cryptocurrency Scams

Best Modes for Avoiding Crypto Scams

How can you avoid being a victim of a cryptocurrency scam? Before you go all-in on Bitcoin, Ethereum, or other digital currencies, there are a few things to think about.

  • Don’t believe everything you’re told. Examine any claims made about investment, especially if they appear too good to be true or promise huge returns in a short period of time. The 2020 Twitter breach screamed a hoax from the start.
  • Do not believe anybody who contacts you personally, whether it is a government official, a prominent personality, or a stranger, and asks for bitcoin payments or offers you an “investment opportunity.”
  • Never give out your bitcoin wallet’s private key or seed phrase to anybody, and keep that information offline in a cold wallet.
  • Whenever feasible, enable two-factor authentication on your cryptocurrency wallet and exchange. However, as we witnessed when Coinbase was hacked, this is not a foolproof method.
  • Check the URLs of websites twice and three times. When trying a phishing scam, scammers would replicate the URL of a valid site and replace letters and numbers, such as a “l” for “1” or a “0” for the letter “O.”
  • Any offer that needs an upfront cost, regardless of the amount, should be rejected, especially if the price must be paid in cryptocurrencies.

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