Investing in crypto currency can be a tough system to navigate. There’s a lot you need to watch out for and protect yourself from in the online world. Ryan Derousseau, author of THE EVERYTHING GUIDE TO CRYPTO CURRENCY, shares some tips on avoiding online scams.
The scams don’t just show up during the ICO. Instead, because of the lack of knowledge about the crypto space, the high amount of enthusiasm, and the limited traceability of stolen coins, they’ve become the targets of scammers looking for quick bucks just as much as those looking for the huge payday. These scams vary widely, both in style and the size of expected returns, but they typically take one of these forms:
- Email scams: If it’s from a Nigerian prince needing your bitcoins, delete the email. It’s an old trick, but one that still somehow works.
- Fake exchanges: It’s exactly as it sounds. A site pretends to be an exchange offering low fees and great opportunities, then steals your cryptos as soon as you commit.
- Hacks: Every once in a while, a hacker will target unsafe coins or exchanges, walking away with millions of value in coins.
- Malware: Hackers use holes in the code to steal your cryptos.
- Ponzi schemes: A promise of riches using a crypto structure, only to disappear as soon as the money forked over runs out.
- Ransomware: You click the wrong link, and there’s someone threatening to release information about you, unless you send bitcoins.
While it may seem easy not to fall for these types of tricks, there’s a reason that hackers and scammers keep going back to the same tactics: they work. It’s why once you have a crypto exposure it’s time to protect it from the bad players.
For more advice on crypto currency check out THE EVERYTHING GUIDE TO INVESTING IN CRYPTO CURRENCY by Ryan Derousseau!
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Excerpted from The Everything Guide to Investing in Crypto Currency by Ryan Derousseau. Copyright © 2019 by the author. Used by permission of the publisher. All rights reserved.