Scams have been around for as long as humanity. Ever since the invention of currency (whether it was bartering or paper money), people have been coming up with ways to get the best deal, cheat others out of what’s theirs, or figure out how they can get something for nothing. Call it human nature or something else, it’s a reality.
The world we live in today is so much more complicated, though. There are scams everywhere you turn, from ads on TV and social media to emails and text messages. Unfortunately, scams in the crypto world are pretty common.
There are a lot of reasons for this, but what you really need to know is how to avoid it. Especially if you’re not familiar with blockchain, crypto, wallets, platforms, or the various cryptocurrencies, it can be difficult to pinpoint a scam when you see it.
Before we get started, let’s review a few things:
Let’s dive in! Here are some of the best ways to avoid getting scammed and losing your crypto!
This is pretty easy. It’s just like in the physical world or in traditional finance. You can’t trust every offer you see claiming you could win $500 if you just CALL NOW! There are a lot of crypto projects out there, and some are much more well-known than others.
It’s easy to get some bad advice or listen to someone who really doesn’t know what they’re talking about. Don’t take your financial advice from the media, internet forums, or celebrities. If they don’t have the credentials they should when talking about crypto, you shouldn’t be listening to them.
Be aware of emails, texts, or phone calls from shady sources. They may even look real, but many times, they’re not. Attackers will send out mass emails claiming to be someone they’re not. These emails contain links to fake websites that look just like the real thing. As soon as you enter your credentials, you’ve given someone access.
Double-check the recipient address, look for misspellings and grammar mistakes, beware of inconsistent formatting, and if anything at all looks suspicious, ignore it. They’re trying to play on your sense of urgency or fear, so don’t let them. Always be on the lookout so you can avoid crypto scams.
Now that we got one of the most obvious (but still very important) points out of the way, let’s move on. Always, always, ALWAYS use two-factor or multi-factor authentication where you can. Use it on your email, any crypto platforms you may be using, your crypto wallet, everything. That way, even if someone does find your login information, there’s still an extra verification step before they gain access to your crypto.
Before they can get into your wallet or your crypto trading account, there’s still a code they need from your email or phone. Unless they physically have your phone, they won’t be able to get this code.
Besides, we hope if you receive a code you didn’t ask for, you may question where it came from or who is trying to access your account and take the necessary precautions to secure the account even further by changing your username and/or password.
In addition to multi-factor authentication for your online access to crypto platforms, you also need to secure your crypto wallet. No matter what type of wallet you decide to use, make sure it’s from a reputable company.
Don’t give your wallet credentials to anyone, just like you wouldn’t share your passwords. It’s common sense, but it’s also all too easy to get comfortable. Also, be sure not to log into your wallet or any of your other accounts using a public network. Doing so will help protect against crypto scams.
As discussed, set up multi-factor authentication for your wallet along with everything else. You may even want to consider using multiple wallets to diversify your assets. If someone gains access to one, they won’t have access to all of your crypto.
Cold wallet storage is also a great idea because it’s not connected to the internet.
Come on, guys. This is Internet 101. Don’t give out any of your personal information. That includes usernames and passwords, security codes, private keys, recovery passphrases, and anything else that could grant someone access to something that belongs to you.
There’s nothing else to say here. Really, just don’t do it.
The absolute best thing you can do is be informed about it. If you want to avoid crypto scams, you need to research platforms, coins, wallets, and everything else you may want to purchase. Here are some things to ask:
Knowing the ins and outs of anything you buy is smart - it doesn’t just apply to crypto. A lot of crypto projects are new and haven’t been reviewed yet. Sometimes it’s best (especially as a beginner) to stick with the ones that have been around for a while.
If you do want to branch out, just know and understand the risks.
No one can possibly know everything. That’s why we’re here to help! Bitcoin Depot offers thousands of BTMs where you can quickly and safely perform your transactions. Finding the closest Bitcoin Depot BTM will allow you the security you and your crypto deserve.