10 Tips For Staying Safe In Crypto

Where there’s money, there’s fraud, and cryptocurrency is not an exception. In the USA alone, over 80,000 crypto frauds were seen in 2020. A skyrocketing market attracts crowds of gullible newcomers, and, together with poor regulation, that makes it an appealing target for fraudsters.

Whenever any innovation is introduced in the crypto market, scammers are right by. They run fraudulent ICOs, create pump-and-dump tokens, hack vulnerable flash loans and write malicious smart contracts. The crypto market lacks security — but there are good ways to protect yourself, and these tips are easy to follow. In this article, we will describe the typical characteristics of fraudulent projects. Avoiding them will help you prevent money loss.

1. Avoid shiny promises

2. Investigate suspicious founders

Whenever you plan to use or invest in a new project, see what its founders are. If they are tied well to the community and have had partnerships with renowned projects — that’s good. Users of Quadriga exchange in 2019 might not have checked who its founder Gerald Cotten was before putting $215 million into the platform. After Cotten died under mysterious circumstances and all the money vanished, everyone realized how dodgy his past was.

3. Centralized platforms pose a risk

4. Beware of dodgy websites

5. Check social media

6. Verify suspicious claims of influencers’ support

7. Check compliance with the law

8. Recognize empty claims

9. Make sure it’s not only about bringing friends

10. Don’t enter your passwords or seed phrases outside the platform where you use them

Bottom Line

While you can’t affect the former, you can easily avoid the latter. Follow the tips above, do your own research, and you will never fall victim to those who profit from our greed, thrill, and unawareness.

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