ALBAWABA – Amid the ongoing release of new cryptocurrencies—digital currencies in which transactions are verified and records are maintained by a decentralized system using cryptography, rather than a centralized authority, many scammers are constantly seeking to exploit investors. In this article, we will walk you through some tips and highlights to help you better protect yourself and your investments.
Cryptocurrencies scams
The cryptocurrency market is growing by the minute, especially with the constant surge and release of new currencies. This has led to an increase in scams, with scammers constantly attempting to exploit investors.
It is important to note that cryptocurrency transactions are typically irreversible, meaning once a payment is made, it cannot be reversed or refunded in the same way. Therefore, experts advise investors to double-check the sources they choose to invest their money with.
Gabriele Asaro, Head of SEO, and Research at Instaxchange.com, a licensed provider of financial services, offering fast and secure fiat-to-crypto, crypto-to-fiat, and online exchange operations, says users and investors must follow a simple and vital list of precautions before they decide to invest their money.
Notably, around $575 million was lost between 2021 and 2022 due to investment scams. (Shuttertsock)
“Crypto can be a safe and secure currency. Millions of people are beginning to use and become knowledgeable about how it works, yet there will always be scammers looking to make money maliciously. Fraudsters love jumping on popular coins as it is a great way for them to trick citizens out of their hard-earned money,” said Asaro.
1. Examine pump-and-dump
Cryptocurrency scammers often manipulate the prices of cryptocurrencies or stocks to convince people to invest.
Once the price is artificially inflated, they suddenly drive it down significantly, leaving investors with substantial losses.
2. Do not send cryptocurrency to strangers
Asaro further advises users and investors to never send cryptocurrency to strangers or people they do not know.
Many scammers establish fake relationships with others and ask for money to cover hospital bills or travel expenses.
Asaro emphasizes that people should never send money to someone they do not know or have met in person, no matter the circumstances.
3. Be cautious of investment scams
Notably, around $575 million was lost between 2021 and 2022 due to investment scams.
These scams typically involve fraudsters posing as high-profile celebrities or figures, convincing people to invest their money and cryptocurrencies.
Investors must exercise caution and carefully verify the identities of the individuals they are dealing with.
“It is unfortunate that many fall victim to scams and even more so that experienced users would dedicate time to taking advantage of those newer to crypto. However, it is easy enough to ensure you do not lose money by remembering to verify sources, check if a site is trustworthy, and never send money to a person you have not met in real life,” added Asaro.
