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How to Stay Safe in Crypto



Stay Safe in Crypto

Image by Tumisu from Pixabay

If you get involved with anything financial, there are a number of things that you should do. One of them is to make sure that you receive the product or service that you want. However, you also have to ensure that you stay safe, as well.

This applies to any type of traditional financial service, but it also applies to cryptocurrency. Unfortunately, there are some untrustworthy people and entities that are involved with crypto. You have to make sure that you stay safe when you are doing anything involved with cryptocurrency. Keep reading to learn how you can stay safe when it comes to cryptocurrency.

Don’t Use a Shady Exchange (like FTX)

At this point, you have likely heard about the FTX scam. Quite a few people lost money in the FTX scam and it was big news in the realm of cryptocurrency for a while. In fact, the founder of FTX, Sam Bankman-Fried, is facing federal charges at this point. It is possible that he will face jail time as a result of his actions.

The FTX scandal was terrible, but it also demonstrates an important point when it comes to staying safe in crypto. One of the things that you need to do to stay safe is to make sure that you do not use a shady cryptocurrency exchange. You should do whatever you can to check to ensure that a cryptocurrency exchange platform is legitimate before you use it. Otherwise, you can risk losing quite a bit of money.

It is best to only use respected and well-known cryptocurrency exchanges. If an exchange is reputable, it will have a website, a significant social media presence, and verifiable employees. A reputable crypto exchange also has a history in the cryptocurrency community and among researchers, as well. You can use this resource for more information about how to identify and avoid cryptocurrency scams.

Don’t Get Caught in a Honeypot Scam

You may have heard of a crypto honeypot scam before now. If not, the simple version is that a honeypot scam allows the scammer to steal your crypto a little bit at a time. Honeypot scams are quite common among people that act in bad faith and steal cryptocurrency from others. Thankfully, there are a number of ways that you can avoid honeypot scams.

One of the best ways is to use a honeypot checker to ensure you don’t get involved in any crypto honeypots. The honeypot checker will let you know if there is a possibility that your token is a honeypot. That way, you can keep your funds safe and steer clear of any scams. You should use a honeypot checker to ensure that you do not get involved in a honeypot scam.

Don’t Get REKT on Scam Tokens

Another thing that you can do to stay safe in crypto is to avoid scam tokens. Scam tokens are fake tokens that people create in order to steal cryptocurrency from others. You should research any cryptocurrency token before you accept it. You can do this by researching the team behind the token by using resources such as Twitter and Google search.

If you notice a project that has a significant number of social media followers but barely any management, you should proceed with caution. That is often a sign of a scam token. You can also check to see how many exchanges host the token in question. If only a few exchanges host it, then it is likely a scam token. It is best to avoid any token that you think could be a scam.

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