Many investors fall into a scam while transacting money to a third party. Once the blockchain validates the transaction, it is irreversible. Hence, the need to be cautious before making any transaction.
Recently, investors tend to buy Ripple more than other cryptocurrencies. The main contributor to this is because Ripple has a reduced chance of being a scam victim than Bitcoin. Bitcoin is the top cryptocurrency, but cybercriminals keep lurking around it.
Hence, below are the most popular crypto scams you should avoid.
Technical Support Scam
The tech industry has plenty of impersonators. Cybercriminals deceive investors by offering a customer support service. It could be through a phone call while extracting the victim’s personal information.
These cybercriminals are experts in using their engineering skills for fraudulent activities. However, people who buy Rippleprotect their wallets with authenticating means such as 2 FA. Hence, do not give out your public or private key to anyone.
Fake investment is the most common among others. Many people hear of cryptocurrency but have little idea of its operations, while others are too lazy to trade themselves.
What the investment scammers do is lure people into giving money. They promise to trade on their behalf, yielding a high return on investment.
In case you are uncertain about how to start investing, pause for a while. Read and research more on it, and connect with a mentor.
To avoid these Ponzi schemes, make findings of the organization you are investing in, and choose a trusted and registered platform. If you find any Ponzi scheme investment, you can contact the Federal Trade Commission or any other investment regulators in your state.
Fake Cryptocurrencies and Bitcoin Exchanges
There are plenty of Bitcoin exchanges out there, and to avoid falling victim, choose an exchange platform that has gained ground in the Crypto industry.
Today, many currencies claim to beat Bitcoin blockchain technology and provide a wide profit margin for investors. However, they convert the money into their account.
A popular exchange that ended up scamming people is BitKRX. You can buy Ripple and secure your account by researching if big investors use the same currency exchange. If need be, contact a financial advisor before making a decision.
Founders of legit new cryptocurrencies are often a co-founder of an existing currency. Hence, consider the currency founders to determine if it is fake or not.
ICO and Defi Scams
Cybercriminals create a fake Initial-Coin-Offering (ICO) platform, asking investors to deposit into it. Sometimes, they publicize aggressively and even use celebrity faces. Hence, if you are not discerning, you will likely fall for the trap.
The fake ICO wallet is usually compromised, leading scammers to all your private and sensitive information. Although the rate of ICO scams reduced in 2018, it has not completely gone down.
Defi, known as decentralized finance, is the latest cryptocurrency scam.
Defi is an innovative approach for cryptocurrency. Its rug pull action involves stealing investors’ funds through Defi avenue.
Scammers bring in a smart contract and promise to offer investors compound returns on investment. Avoid being greedy with unusual ROI promises. Begin with basic trading before diversifying. A strategic way to start is to buy Bitcoin at the early investment stage and buy Ripple shortly after. However, you can buy Ripple earlier if you do not have enough financial capital yet.
Fake Mobile Apps and Social Media Scams
Mobile Apps and social media are the quickest places to scam a lot of investors. Unfortunately, many people fall for it.
Scammers understand the quick trick with celebrities and big investors. Do not fall for a fake or an imposter account. Some of them may ask for some amount of cryptocurrency in return for something greater. No matter how big the promise seems, stay away as much as possible.
Social media scams also include fake testimonies. Humans easily fall for stories and testimonies, and scammers understand this as well. They form a team that continually lies to the public about their services.
Investors have had a rollercoaster ride with Bitcoin over the years. With the sudden switch in price, people wonder if a high percentage of investors would not eventually buy Ripple.
You can secure your Ripple account by registering on a reputable trading platform like Bitvavo. If your digital asset is competitive, you should be extra careful as you have many opponents looking out for your fall. Lastly, if an investment plan appears too good to be true, it is mainly not true. Hence, trust your instinct in this case.