Crypto currency scams are something that people will always have to watch out for. Thankfully, there are many things that you can do to avoid these scammers! This article discusses some of the methods you can use to avoid crypto currency scams and keep your money safe!
Do your research
When you’re thinking about buying any type of cryptocurrency, whether it’s Bitcoin or an alternative coin (aka altcoin), take your time and do your research. If you invest blindly, without researching what you plan to buy, you might end up with an unusable currency. Learn about exchanges like Coinbase, GDAX and Bittrex; they offer varying levels of security and fee structures. Check out Coinmarketcap for market information on specific cryptocurrencies; there are dozens to choose from.
Know who you are dealing with
Before investing in any cryptocurrency, do your research. Become familiar with every aspect of a project—the good and bad—and understand how it works, as well as who’s behind it. Always go into crypto investments with your eyes wide open. More importantly, be sure to understand exactly what you are getting yourself into before you put money on any line. If you aren’t comfortable doing that work, then don’t invest! Investing should feel comfortable—not frightening or risky.
Beware of faucets
Faucets are a terrible way to acquire cryptocurrency for multiple reasons. They often require a high amount of time and effort, have high payout minimums and many don’t even pay at all. In other words, it’s almost always better to mine or buy cryptocurrency instead of mining faucets. I strongly recommend against it.
Use common sense when participating in ICOs
Before participating in any ICO, you should do some research. There are many online resources that can help you determine if an ICO is legitimate or not. After reviewing an ICO, consider carefully whether it seems like a scam or not. If an offer looks too good to be true, it probably is.