Many cryptocurrency scams are designed to be convincing and complex. Here are some steps you can take to protect yourself:
Protect your wallet: To invest in cryptocurrency, you need a wallet with a private key. If a company asks you to share your key in order to participate in an investment opportunity, it is likely a scam. Keep your wallet key confidential.
Watch your wallet app closely: For your first transfer, only send a small amount to confirm the legitimacy of the crypto wallet app. If you notice suspicious behavior when updating your wallet app, terminate the update and uninstall the app.
Only invest in what you understand: If you don’t know how a particular cryptocurrency works, it’s best to stop and do further research before deciding whether to invest.
Take your time: Scammers often use high-pressure tactics to get you to invest quickly, such as promising bonuses or discounts if you participate right away. Take the time to do your own research before investing any money.
Be wary of social media ads: Crypto scammers often use social media to promote their fraudulent schemes. They may use unauthorized images of celebrities or well-known businessmen to create a sense of legitimacy, or may promise giveaways or free cash. When you see cryptocurrency opportunities promoted on social media, maintain a healthy skepticism and do your due diligence.
Ignore cold calls: If someone contacts you out of the blue to pitch you a cryptocurrency investment opportunity, it could be a scam. Never disclose personal information or transfer money to someone who contacts you in this way.
Only download apps from official platforms: While fake apps can end up in the Google Play Store or Apple App Store, it’s safer to download apps from these platforms than from elsewhere.
Do your own research: The most popular cryptocurrencies are not scams. However, if you haven’t heard of a particular cryptocurrency, research it: see if there’s a whitepaper you can read, find out who’s running it and how it works, look for genuine reviews and testimonials. Look for up-to-date and credible lists of fake cryptocurrencies to check for scams.
Too good to be true: Companies that promise guaranteed returns or make you rich overnight are likely scams. If something looks too good to be true, proceed with caution.
Finally, as with any investment opportunity, never invest more than you can afford to lose. Even if you’re not scammed, cryptocurrencies are volatile and speculative, so it’s vital to understand the risks.