In Crypto trading or investment , it is necessary to know how to escape digital currency challenges, as far as Cryptocurrency and digital currency scams are concerned, one should always stay away from any investment plan that appears unclear and not well explained. Before giving any money to a website/mobile app, know the company and founders before investing and ascertain the level of recognition of such a scheme.
If you are looking to invest in digital currency, there are necessary precautions you should keep in mind as an investor, in order to escape some of the challenges that currently face the thriving of digital currency, here are some of these precautions:
Beware of Fake Crypto Investment Platforms
You must avoid all fake cryptocurrency exchanges. Stick to the reputed and recognized bitcoin exchanges only. Check cryptocurrency forums and subscribe to authentic RSS feeds or notifications so you receive the news of fake exchanges on time or stick to trustworthy platforms for genuine crypto investment opportunities.
Mining Scams
Take extra precautions in identifying fake mining scams. One way to identify the fake ones is by their lofty promises. They promise unrealistic returns on your investment and never mention the hidden fee that applies to these returns. These servers are smart designs to take money from unsuspecting investors. Always be vigilant while signing up for cloud mining servers and think about the security of your data on your system before you go online on a shared server.
Avoid Pump and Dump Schemes
It is very common for scammers to buy a new altcoin in bulk. It increases the market price of the cryptocurrency momentarily and triggers FOMO (fear of missing out) among other investors. As soon as new investors begin investing in the new coin and the prices shoot up higher, the scammers sell their share of coins for a higher price. Learn how to avoid emotional trading and avoid pump-and-dump schemes by choosing more popular and stable crypto options like Bitcoin only.
Malware
It takes time for new investors to get a hang of the whole concept of cryptocurrency and this has given several malware programs the chance to evolve. However, malware programs now pose newer and bigger threats to people.
To avoid this, you must ensure that you update your antivirus and system firewall and ensure that you visit a secure and trustworthy platform that does not prompt auto-download of .exe files or require you to download suspicious attachments.
Also Read
