Online crypto scams are a persistent threat for anyone looking to cash in on Bitcoin and other cryptocurrencies.
Research from leading blockchain data platform Chainalysis shows that crypto scammers took home more than $5.9 billion from consumers in 2022. Scammers have developed increasingly diverse and elaborate methods to swindle their victims, and here’s what you can do to protect yourself.
1. Only buy crypto from established and reputable platforms
Investing through reputable platforms and registered brokers can help you avoid most crypto scams. Any platforms you find on random websites are incredibly likely to be scams.
They might promise better terms or features than other platforms, but they’re just saying that to get your money. If you want to buy crypto directly, go with one of the leading platforms on the web today.
2. Be wary of any new crypto projects
Getting in on the ground floor of a promising project is one way to gain significant returns. However, it’s also incredibly risky, even in well-established industries.
This is even truer for crypto projects. Most new projects fail quickly, and many are outright scams. Unless you have the considerable tech and finance background to evaluate new projects, you’re better off avoiding them altogether.
3. Don’t give ads on social media the time of day
Social media has become a battleground between crypto scammers and governments worldwide.
Despite continued pressure and multiple lawsuits, social media platforms continue to allow fraudulent ads on their websites. If you see a social media ad or post about a crypto opportunity, keep in mind that there has been no vetting or moderation to determine whether or not it’s a scam.
4. Make sure endorsements are genuine
Have you seen a news story about your favorite celebrity making millions with a quick and easy crypto-investing app? If so, you’ve come dangerously close to a major crypto scam.
Fake celebrity endorsements are a favourite method of scammers, with counterfeit posts, news stories, and websites all dedicated to the scam. Verify any endorsements you see because most of them are fake. Conducting research on websites like Scam Crypto Robots is always a good idea.
5. Don’t believe anything too good to be true
Is a crypto app or platform promising guaranteed returns, auto-pilot trading, or other benefits that are simply too good to be true? Your gut instinct is likely right because these are common scam tactics.
Any platform that promises exclusive loopholes or unrealistic returns isn’t to be trusted. Legitimate platforms go out of their way to highlight the potential risks of any investment.
6. Double check URLs, emails, and usernames
If you use a reputable platform, always check that you’re visiting their official website. Check the URL, and don’t follow links you receive via email.
A common scam involves making websites, emails, and usernames similar to legitimate ones but off by a letter or two. You might think you’re logging into the real thing, but you’re giving your password to scammers.
7. Consider safer ways to invest in crypto
Buying and selling crypto directly is still a somewhat complex, technical, and risky task. If you want exposure to crypto in your investments, consider purchasing stock of a business engaged in crypto ventures.
Many are available today, from project developers to companies that simply hold Bitcoin. You’ll also find various exchange-traded funds (ETFs) with different levels of crypto exposure.
Stay vigilant to avoid falling victim to online crypto scams
These tips should help you avoid most online crypto scams around today.
However, remember that they only work if you follow them diligently. It’s tempting to go against your better judgment to get rich quickly. However, slipping up just once is all it takes to lose big time with online crypto scams.