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Scared Of The Crypto Scams? Here Is What You Need To Do

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Scared Of The Crypto Scams Here Is What You Need To Do

Anything that involves technology comes with its drawbacks. Its biggest flaw is its vulnerability to cybercrimes when it comes to cryptocurrency. As the whole system of crypto works on the internet, there are great chances of becoming a victim of cybercriminals.

With the popularity of crypto rising with every passing day, it is becoming quite an interesting topic for scammers. As the cryptosystem is high-tech, it attracts highly sophisticated scammers that are pulling extensive hacks to turn crypto to their advantage.

Make Smart Moves; Keep The Scammers At Bay

If you are a new investor who has recently ventured into the world of crypto investment, you need to play smart! This means that you should keep your investments in crypto less than 5% of your entire portfolio. Doing this will keep you safe.

Even if the market crashes all of a sudden, you won’t end up losing much. This smart step of yours will help you set your finances in the right direction and manage them in case of emergencies. A cryptotrader software will help you manage the coins easily.

Another smart move that will keep your finances safe to some extent is saving a set amount for your retirement and investing in traditional investment funds. You can use whatever is left to place your bets on the crypto market. This way, you will have the security of some amount being safe somewhere, while the rest is out there in the crypto world.

Avoid Crypto-Only Payments

One major way the scammers cheat the crypto traders is by asking them for crypto-only payments. This means that while buying something if a retail business asks you to pay only in Bitcoin or Ethereum as it doesn’t accept the cash payment, this is most likely a scam.

The crypto market is still developing and is not as credible as regular cash, debit, or credit payments are. Hence, if someone forces you to pay in crypto, there are chances that he is trying to hoard onto that particular cryptocurrency. Once he can capitalize it as a part of a greater network, its value will skyrocket, affecting the market’s volatility.

Staying Away From New Gaming Trends

Like the recent ‘squid game’ scam, developed by sophisticated coders, cheated a lot of investors, many new ones can also come into the scene with new ideas. The idea of creating new games and connecting them to the blockchain is quite risky. One never knows whether it is a scam or a really rewarding game.

A newly minted coin, popularized by scammers, is the novel way to attract investors. Those who are new in the world of cryptocurrency and have no deep knowledge about the working of cryptocurrency may get excited about the prospects of buying new coins and making great profits out of them.

Once many buyers get interested in it and decide to buy it, the demand goes up, which increases their prices as well. Eventually, the scammers sell them off at exorbitant prices and then vanish altogether. This leads to the investors losing all their money instantly. This is the most regular method scammers use to cheat the newcomers in the market.

Vulnerability Of The World Of Cryptocurrency

Even the most advanced ones, Cryptocurrency experts, are aware that the crypto world is a new one and has a lot of risks. Anyone who becomes a part of it gets vulnerable to fraud and theft. While dealing with volatile assets, the chances of losing them all within five minutes are high!

Conclusion

The cryptocurrency system is regulated by a majority of users who abide by the rules and regulations. There is no centrally controlling authority that can check the scammers and scrutinize them. Hence, frauds can’t be protected, and there is no real insurance backing the blockchain.

The only way to keep yourself protected while investing in cryptocurrency is by taking every step cautiously and avoiding all the potential sellers with red flags. Avoid anyone who pledges to multiply your money within days, someone who looks like a fake celebrity, or anyone who puts into a contract forcing you to keep crypto for a definite period.

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