5 Ways To Avoid Crypto Scams
It is sad how rampant these crypto scams are, and they have kept people on the edge of their seats, which is why it’s essential to know ways to avoid scams in cryptocurrency.
According to the Federal Trade Commission, over forty-six thousand people were reportedly involved in crypto scams in 2021 and collectively lost about $1 million.
The constant crypto scams have made people apprehensive about the crypto industry and investing in crypto.
Despite this, Nigerians have continued to lead in the adoption of cryptocurrency in Africa, and by 2030, it has been predicted by data from Merchant Machines that Nigeria will be at the forefront of worldwide crypto adoption.
While new scamming tricks continue to pop up now and then, we must learn how to keep an eye out for red flags.
To learn five different ways how you can avoid cryptocurrency scams, keep reading.
5 Ways To Avoid Crypto Scams
1. Only Invest In What You Understand:
Let me bring up a typical scenario…you are lounging around with your friend, and they pipe up and tell you about this new crypto project, whether a coin or even a crypto exchange platform. They talk extensively about it, sell you lots of dreams and even guarantee you 100% or at least a very high ROI. Now, you do not understand what cryptocurrencies are or how they work, but because you trust your friend’s judgement, you give him some money to invest for you anyway. Remember that someone might have also approached your friend with the exact speech and dreams. Before you know it, it fell through, and you have been scammed by unknown people.
It is essential that you only put money into what you understand. Yes, we know that crypto is getting all the buzz lately, and everyone has been singing its praises, but you should only commit to it when you know you understand what it entails.
2. Test Out Crypto Wallet Apps:
When trying out new cryptocurrency wallet apps, a tip is to send a small amount of money to it first. Think of it as a test and only send the amount you are comfortable losing. If you are not comfortable with the least amount the wallet accepts, it is best to avoid pressuring yourself and putting in more.
3. Keep Your Private Keys Safe:
Your private keys give you ownership and access to your funds in a crypto wallet. Once someone gets a hold of it, they can make away with your assets. So, you must keep your private keys safe, secure and out of reach.
4. Check For Suspicious Website URLs:
It is relatively easy to create a website and is widely used for scams. You must double-check website URLs before providing sensitive personal information or even trying to convert your bitcoin to naira. A tip is to check if the URL starts with HTTPS and NOT HTTP.
5. Do Your Own Research (DYOR):
This is one of the essential tips in crypto that cannot be overemphasized. It is vital that you take time to carefully research everything and anything you are getting into in the cryptocurrency industry. Whether it’s a new coin, any of the bitcoin applications, or a staking platform, just anyone. Everything might look promising initially, but not all glitters are gold, remember?
Before you put money, time and effort into anything, make sure you do your findings and carefully analyse them to see if it is legitimate or not and if it is something you want to be involved in.
Now you have learnt some tips and ways to avoid being scammed in the crypto industry. Remember to keep your eye out for red flags and do not just hop on a project because it is being popularised and even endorsed by celebrities; always make sure you thoroughly research before diving into anything.
This article is written by Somebody From Breet. Breet is an over-the-counter crypto trading app in Africa where users can sell their crypto, convert it to cash and withdraw it to their local bank account in less than five minutes.