As the popularity of cryptocurrencies has risen across the world, so has the creativity of scammers looking to target inexperienced crypto traders and investors.
But even if you’re not a brand new crypto user, don’t think you’re immune to falling for shady schemes.
It’s difficult to stay on top of the latest news on crypto fraud and theft.
Cryptocurrency scams are becoming more sophisticated but there are ways to avoid becoming a victim.
How to Protect Yourself from Crypto Scams
8 Tips to Protect Yourself from Crypto Scams
Here are 8 helpful tips you can take to protect yourself from crypto scams.
1. Never share your wallet’s seed phrase.
If you are asked to share the seed phrase of your crypto wallet, to participate in an investment opportunity, or to “restore” or “load” your account, it’s a scam to steal your holdings.
Don’t fall for it!
Never share your seed phrase or private keys with anyone. Even if yo mama asks for it.
Mom asks for seed phrase
And remember to keep your seed phrase in a safe place.
2. Do your own research.
If you’re unfamiliar with a cryptocurrency and don’t know what makes it unique, do your homework.
Protect Yourself from Crypto Scams
Search online using the company name as well as the cryptocurrency name, and add “review,” “scam,” or “complaint” to your search.
Pay attention to the results and don’t just skim the content. Online reviews may have come from fake profiles.
Always do your own research (DYOR) before you risk any money.
3. Ignore urgent requests.
Scammers try to use high-pressure tactics to get you to send your money quickly.
For example, they may offer discounts or bonuses if you act now. Or they may pretend to be a friend in an emergency who needs money sent as crypto.
Urgent Message Scam
Watch for heavy sales pitches to “Invest now!”. It’s probably a “pump and dump” scam.
Urgent payment requests are a big warning sign. If you receive these types of requests, just delete the messages and ignore them.
4. Be suspicious of social media posts.
Social media is the most profitable method used by scammers than any other method of reaching people.
Crypto scammers often use social networking apps like Twitter or chat apps like Telegram and Discord to promote their scams.
They may claim that influencers or celebrities endorse or support their projects, or are even investors. Posts may include photos or screenshots. But this is all fake and all lies. Do not believe the hype.
When…not if, you see the heavy promotion of a new cryptocurrency or other crypto projects on social media, be skeptical and DYOR.
And if someone appears on your social media and rushes you to start a friendship or romance, watch out! Be aware of romance scams.
5. Ignore random DMs.
If you get a random direct message (“DM”) from a stranger who is trying to pitch you a crypto investment “opportunity”, it’s a scam.
Never transfer your crypto or provide any personal information to anybody who makes unsolicited contact with you.
Random message scam
Even if it’s not a total stranger and you know the person, remain suspicious.
Either that person has been convinced by a scammer and is now trying to get you to participate OR their phone, email, or social media account has been hacked and the hacker is impersonating your friend.
6. Make sure the website address is correct.
When visiting a crypto-related website, always double-check the website’s address (“URL”) before entering your information.
Double check URL
If you’re unfamiliar with a cryptocurrency’s website, get the URL from an official source, such as the cryptocurrency’s official Twitter account.
You can also use well-known price-tracking websites for cryptocurrencies such as CoinMarketCap or CoinGecko. Simply search for the specific cryptocurrency and look for the link to their official website.
Whenever you receive ANY messages, whether via email, text, chat, or DM, always check the spelling of the URLs in any links before you click! And watch out for URL redirects, where you’re subtly sent to a different website with a similar design.
7. Download apps from official mobile app distribution platforms.
When using crypto mobile apps, only download from official mobile app distribution platforms, also known as “app stores”.
For iOS devices, this would be the Apple App Store. For Android devices, this would be the Google Play Store.
App Stores
If you’re asked to download a mobile app outside the App Store or Google Play Store, which is known as ” sideloading“,
I highly recommend against it. These apps have NOT been reviewed by Apple or Google.
For example, you could be downloading and installing a fake mobile wallet. Once you send any crypto into this wallet, it will be immediately transferred to a wallet that definitely won’t be yours.
Be leery of requests to download apps to fix issues or that allow access to your device.
8. Avoid anything with “promises” or “guarantees”.
If someone “promises” high returns, that’s a scam.
And if they “guarantee” returns, that’s also a scam.
But if they promise and guarantee high returns with zero risk, that’s legit.
I’m kidding! Of course, that’s a scam!
Legitimate investments that can guarantee high returns with no risk do not exist. You’re better off trying to find a pot of gold at the end of a rainbow.
Pot of Gold
See glowing testimonials or awesome-sounding success stories? They’re probably fake.
If something sounds too good to be true, it is.
