As with everything that is money-related, there are plenty of scams involving cryptocurrencies out there. Some are phishing scams, and others involve money transfer fraud.

There are even fake sites and applications that pretend to be legitimate companies to steal from you. It is a good idea to make sure that you are aware of the possible scams before you invest, so you can protect your money as much as possible.

The best way to protect yourself is to store your coins in a cold or offline wallet. Never share details of your wallets with anyone either and keep your passwords or ‘key’ written down somewhere offline also.

Fake exchanges

These sites are set up specifically to con people out of their money by appearing to be a genuine exchange. They usually offer very attractive rates and discounts to attract new customers and simply take everything invested. It is really important to make sure that an exchange is actually a real company and check out its reputation online from multiple sources.

Free giveaways

Anything that involves free giveaways is more than likely a scam. These scams often require users to pay a small fee or deposit before getting their ‘bonus’ and never pay up. Even worse than that, they can ask for your wallet details and drain your account.

Malware

Just like a regular virus, these can end up on your computer and copy your details. One type of malware alters the public address you are sending coins to so that it, unknowingly to the user, is sent to the scammer’s account. Be careful and always double and triple-check addresses that you send money to. Install decent anti-virus software and if possible, keep your details on an external hard drive and keep them safe.

Phishing emails and websites

This is not unique to cryptocurrencies but can have an impact on them. Never answer or follow instructions on any unsolicited emails requiring you to input your passwords or details. You can usually tell if these are scams from looking at the sender’s address, as mostly they are slightly different from the actual company’s correspondence address. Most crypto companies do not contact you unless you have asked for something specific. Forward suspicious emails to the support of the company.

Any site that claims to have insider information on crypto

If a company claims to make you a fortune for a tiny deposit in a short time, it is not a genuine business. Considering experts are even reluctant to state any absolutes when it comes to cryptocurrencies, it seems highly unlikely that a business you have probably never even heard of before can. If something sounds too good to be true, it usually is.... A SCAM.

Thank you for reading this article I hope this helps.