Cryptocurrency is a digital currency that only exists online. It’s been around for about 10 years and has recently become more popular as people have started to realize its potential benefits. The cryptocurrency market is growing at an exponential rate with the potential to change the way we transact business across the world. Unfortunately, due to its popularity and rapid growth, it has drawn in some unsavory characters who are trying their best to scam people out of money. If you are new to the world of cryptocurrency, then there is a high chance that you have been scammed by an exchange. For those who don’t know what an exchange is, it is a website where people can buy and sell cryptocurrencies. Unfortunately, many exchanges use their customer’s money for their own gain and end up stealing from them.
There are many different ways you can avoid being scammed when investing in or trading cryptocurrencies. Some of the ways are:
1. Make Sure The Website You Are Using Is Secure And Trustworthy –
Never use a website that doesn’t have security certificates and don’t forget to check them. Check the URL on your browser, it should be “HTTPS://” not just “HTTPS”, which means that all information you submit is encrypted with SSL encryption for full protection. If there are any spelling or grammar errors on the website, steer clear. If you are ever asked to do something strange or out of character that doesn’t seem right then don’t be afraid to walk away. Check for other users’ feedback through third party websites like scamadviser and ripoffreport before using any exchange service. There are popular websites like Kraken and Binance, but if you are choosing binance then make sure to go through binance review once before making a decision.
2. Take A Look At The Site’s Terms Of Service –
You should always read the Terms of Service for any website before you sign up, submitting your personal information or starting to trade. There are some amazing deals on certain websites; however, there may be hidden costs later down the line that mean you lose more than what you actually gained in the first place. Don’t take their word as law, always look into the information that they have given you and see if there are any conflicting messages or different details.
3. Find Out How Long They’ve Been In Business –
It is always good to check how long the website has been up for because if they are new, then there may be some technical difficulties that you need to work through. It’s not a bad thing to be new, but it can also mean that they lack the experience necessary to provide you with the best service. You should always check to see how long a company has been in business and what their reputation is like. If there are some negative reviews on specific websites or about certain company practices, then this should always ring alarm bells with you.
4. Check If There Are Any Complaints About Them Online –
You can also search for complaints about the company on Google, which will give you an insight into what sort of things they have done to other people. If there are complaints about a company online, then you should always take this seriously and look into them. And if you notice that there are a lot of negative reviews about the company in general, then this should be another reason to steer clear.
5. Use Two-Factor Authentication For All Exchanges And Wallets –
If you are looking to hold your cryptocurrencies in a wallet, then it is highly advised that you use multiple authentication factors. You should always make sure that every single employee has two or more different ways of authenticating themselves before they can access any information from an account. Otherwise, this could lead to a complete breach of security.
6. Check To See If It Is Regulated By Any Government Agency :
Do some background research on the exchange or company before making any transactions to ensure that everything is legal and within compliance standards.
7. Check The Regulations In Which They Operate :
If an exchange or company is regulated, then it will typically be listed on their website. Look for this information before you make any transactions with them to ensure that everything stays legal and within compliance standards.
8. Look For A Physical Address Of Their Headquarters –
A legitimate business will have a location where they operate from. They should be able to provide this information on their website.
Conclusion
With the popularity of cryptocurrency on the rise, it is important to be aware of some common scams that are happening. These scams can be carried out both online and offline and usually involve a lot of money. Because cryptocurrencies like Bitcoin have become so valuable, these types of crimes will continue to happen until people know how to protect themselves from them.
