The Dangers Of Crypto
Aside from the well-known aspect of crypto volatility, we’re going to focus more on other problems that can arise when you use crypto, such as cybertheft and hacks.
Crypto can be targeted by criminals since it is a job that is completely online and anonymous. Phishing attacks are the most common methods of gaining access to crypto wallets or even trading platforms.
Through phishing, users are tricked into divulging their personal data, such as various details, their password, and the key phrase of the crypto wallet, offering hackers access to their cryptocurrencies – oftentimes without even realizing what they’ve done.
This is why it is important to keep track of the newest crypto threats so you can protect your assets if it comes to encountering them.
How to Avoid Crypto Scams
There are several things which you should keep in mind and check in order to avoid any crypto scams.
For example, run a short research on the project’s leadership. If anybody in charge has a history of dealing with fraud or anything similar, it is better to just stay away from that project as it may be a rug pull.
Don’t join a project just because of a celebrity endorsement. Kim Kardashian and Floyd Mayweather Jr. are currently sued for promoting a crypto project that turned out to be a crypto scam. They probably didn’t even know it was a scam but people lost money on it nevertheless.
If a project promises you high returns, run! A project can offer you high returns, but it is a bit of a gamble. So if someone promises a high return no matter what, it is better to take several steps back, it may not be worth it.
This should go without saying, but watch out for any typos or just incorrect grammar. These are usually red flags that indicate that no more than a few people actually read the whitepaper and no audit was done, suggesting a small operation that could be suspicious.
Rules for Crypto Safety
It is recommended that you work with already-established exchanges. The big exchanges which are known through the crypto community only list a certain number of coins so if the one you are interested in is not on the list, try to find out why.
If you use a decentralized exchange, check the browser app link before you connect to your hot wallet.
Many fake websites which practice phishing may have just one letter changed, two letters swapped between them or replaced by numbers, as opposed to the link used by a trustworthy DEX. Check two or three times the URL address you are working with.
Don’t trust anybody – regardless if they claim to be governmental officials, celebrities, or just random people – who contact you directly asking to be paid in crypto or offering you “an investment opportunity.”
You can receive messages with links on Instagram and Telegram, messages on Discord which claim you’ve won big at a giveaway or even Facebook messages which redirect you to crypto platforms that nobody’s ever heard about.
It is imperative that you don’t access these links and be aware of the fact that nobody will send you 2 ETH if you send them 1 ETH and they don’t offer 3 BTC for free as part of a giveaway.
If you receive any emails or messages from an exchange or a project, also make sure to read everything in detail. It is not uncommon for hackers to send an email that may look like it is from an official account but when you check the email address you can see it is not a legitimate one.
Reject any offer that asks you for an initial tax before you begin investing, especially if said tax needs to be paid in crypto.
The only crypto assets you must own are usually the ones needed for a user card, as it is the case with established exchanges, such as Binance or Crypto.com. In these cases you only need funds in our account anyway so clearly nobody will ask you to send them to another address.
Activate the two factor authentication for any type of crypto wallet or exchange you are using. Keep in mind that not even this offers a 100% protection guarantee, as we saw with the Coinbase hack.
Conclusions
Never invest in a project without doing research about it beforehand.
Anybody can be the victim of hacks or phishing attacks so it’s your duty to know that no website, person, or app, except hot wallets, would ever ask you to divulge your password, private key, or seed phrase.
The crypto assets you own can not be accessed or stolen without the three most important features: the password or PIN, the private key, and the seed phrase.