Cryptocurrency has revolutionized the financial world, offering unprecedented opportunities for investment and financial growth.
However, with these advancements come risks, as scams proliferate, targeting both novices and seasoned investors alike.
In the ever-evolving world of finance, a new wave of innovation has swept across the globe, and it goes by the name of cryptocurrency.
As a former skeptic, I can personally attest to the innovation in this digital asset class.
What once seemed like a complex and intimidating realm, has me now THINKING OUTSIDE THE BOX for financial empowerment other than traditional finance.
Cryptocurrency has the potential to revolutionize the way society thinks about money, financial transactions, and personal wealth.
By leveraging the power of blockchain technology, cryptocurrencies offer a decentralized, secure, and transparent alternative to traditional banking systems.
The possibilities are endless, from making international payments to earning passive income through staking and decentralized finance (DeFi).
In this blog post, I’ll share my personal journey and guide you through 5 EASY STEPS to AVOID potential SCAMS !
1. Using A Trading Platform to Buy and Sell Cryptocurrency
A CENTRALIZED exchange is a platform you can buy and sell cryptocurrency. So before you go ahead and sign up to any platform, make sure to do research on whether the website you’re signing up to legitimate.
I’ve heard a few stories where people have been scammed signing up to NON-LEGITIMATE website in which they put $100,000 and they LOST IT ALL in a couple of years.
The first rule of thumb is to only put in what you can AFFORD TO LOOSE and DO NOT LEAVE that much money on a centralized trading platform. When you give your personal information, you should ALWAYS take this very seriously !
One way to mitigate this is to join their Discord servers to make sure to see what others are saying about the platform.
A Discord is a social media app you can download on their website.
A second way is to check if the platform is regulated by a securities exchange commission by searching through official websites wherever your jurisdiction is. You can typically find these links on their official website.
Usually if somebody you’re interacting with says you’re going to make a lot of money in a SHORT AMOUNT OF TIME by YOU giving them money, its most likely a scammer and there will be NO recourse to getting your money back if that happens.
If you are you beginner looking to get started, check out my other blog post about how to get started with cryptocurrency !
2. Using Discord Servers As A Source of Information
Before joining any Discord community related to cryptocurrency, it’s essential to thoroughly vet the server to ensure a safe and informative environment.
It is important to be verified on a Discord service. Most online cryptocurrency communities are usually connected to Discord in some sort of way.
Most reputable servers require users and members to verify themselves through a variety of methods, such as Discord Bots or CAPTCHAs, to distinguish between bots and genuine human participants. These verification processes help maintain a healthier community atmosphere and discourage spam and scams.
You will often see verified participants such as admins who are recognizable moderators who actively engage in discussions and keep the community informed.
They also host informative and engaging conversations that can enhance your understanding of the ever-evolving cryptocurrency landscape.
Participating in these online spaces is essential in sharing genuine news, valuable insights, and critical alerts regarding market trends, helping you stay updated and AVOID falling victim to online SCAMS.
A GENUINE community can serve as a first line of defense against misinformation that often gives the cryptocurrency sector a bad reputation !
In conjunction with server verification, scammers will utilize various tactics, including the use of enticing language and fake promises, to trick individuals into clicking harmful links.
Always DOUBLE CHECK links and DO NOT click on any of these links and ONLY TRUST official server links !
DO NOT ACCEPT direct messages people you do not know on any server as well !
As I delved deeper into cryptocurrency communities, I recognized the critical role that verified Discord IDs play in protecting oneself from fraud.
Scammers can easily impersonate legitimate users or community leaders, capitalizing on the informal nature of Discord chats.
Thus, I learned to double check the verified IDs of anyone claiming to represent a project.
Enact on cross-referencing with recognized sources, such as official project websites, whitepaper and official X (Formerly Twitter) accounts. Ultimately, remaining informed and skeptical is your best defense in the unpredictable world of cryptocurrency.
Remember, legitimate cryptocurrency projects will typically share information within their verified & official channels !
3. Look for the Blue Check Mark on X (Formerly Twitter) As a Legit Source
X serves as a primary platform for current cryptocurrency trends and information. Many projects utilize X to communicate and engage with their communities. A blue check mark next to a Twitter handle signifies its authenticity, confirming that the account is verified.
When you’re navigating through vast amounts of social media noise, try focusing on verified accounts provides assurance about the reliability of the information shared.
Again DOUBLE CHECK any links and any replies to official accounts typically are SCAM LINKS !
DON’T worry if you click on any of these by MISTAKE. The worst part of this is actually connecting a cryptocurrency wallet to the website and YOU allowing the permission to accidentally DRAIN your wallet empty !
Misinformation can lead to impulsive decisions with dire financial consequences. By following verified accounts, you are more likely to receive accurate updates and insights from reputable sources.
However, even when following verified accounts, it’s wise to stay vigilant. Double-check any critical claims or announcements against other reputable sources or the official project website to ensure the information’s validity by communicating in Discord servers as well !
4. Be Careful of Connecting Wallets to DApps
A Decentralized Application is a software program that runs on the blockchains or any peer-to-peer network.
Decentralized Applications (DApps) provide exciting opportunities within the cryptocurrency ecosystem by offering services ranging from decentralized finance (DeFI) and airdrop opportunities.
However, connecting your wallet to these platforms could POSE significant risks.
SCAMMERS may create malicious DApps that appear legitimate to lure unsuspecting users into connecting their wallets, compromising and draining personal funds if YOU CHOOSE to ALLOW your wallet to connect to the website.
ALWAYS double check especially if you’re looking into ALLOWING and connecting to a website to make sure if the send and receive to are the correct address.
Before linking your wallet to any DApp, conduct thorough research. Check for community reviews and insights about the platform’s credibility through Twitter (which is now X).
By using TRUSTED and WELL-REVIEWED decentralized applications and protocols, you can greatly REDUCE YOUR RISK of falling victim to SCAMS.
5. Avoid Blind Signing Transactions
BLINDING SIGNING occurs when you approve transactions without reading or understanding the detail thoroughly.
It’s like approving and consenting to any online application without reading a policy or the terms of condition in detail.
It’s natural to NOT have to read thoroughly but in this its regarding YOUR OWN MONEY !!!
In the cryptocurrency world, a seemingly innocent transaction could potentially lead to unintended consequences. By approving transactions blindly, you may be granting permissions to malicious applications, ultimately putting your assets at RISK !
In any cryptocurrency ecosystem, you can always check the wallet address by going to the ecosystem’s blockchain explorer. An example of this is Cardano Scan for the Cardano blockchain and you search up someone’s address to make sure it’s legitimate !
Sending your funds to a wallet address that not existing could potentially make you LOOSE YOUR FUNDS PERMANENTLY !
5. Conclusion: Staying Ahead of Evolving SCAM Tactics
Scammers are constantly devising new and more sophisticated methods to EXPLOIT unsuspecting investors.
Just like in your everyday life you might receive SCAM text messages from people you DO NOT KNOW.
To stay ONE STEP AHEAD, make it a habit to regularly review and update your knowledge of the latest scam tactics and warning signs. Be proactive in adapting your strategies and the technological landscape evolves.
By adopting practices such as double checking links, knowing transaction intricacies, and verifying identities. With this significantly enhanced my safety while trading and investing.
The crypto landscape can be fraught with danger, but armed practical strategies and awareness, anyone can safeguard their journey.
By embracing these 5 proven strategies, you can significantly reduce your risk of falling victim to crypto scams and safeguard your valuable investments.
Remember, the crypto world offers immense opportunities, but it also requires vigilance and a proactive approach to protect your financial future.
By sharing these insights, I hope to empower others to carefully tread in this exciting domain and be able to cultivate a safer community for everyone involved.