Cryptocurrency has gone mainstream over the past decade or so. What was once considered a deregulated digital currency used only by the few is now accessible to everyone.
The evidence is in the breadth of transactions for which it can be used. Crypto is accepted for online banking transactions. You can purchase Bitcoin, Ethereum and other popular coins that can be acquired instantly. Regular, everyday online purchases can be made with it. There are entire sports betting sites dedicated to crypto users, according to OnlineSportsBetting.net. The same goes for ebook readers and audio book listeners.
This list could go on. And on. And on.
Yet, while crypto is more widely known than ever, it is not totally understood. Every step of acquisition is foreign to most people. Opening and monitoring an ewallet, completing purchases, converting currency, and even acquiring crypto in the first place all fall under that umbrella.
As such, crypto scams are on the rise right along with crypto use and acquisition. While the most seasoned crypto users know how to avoid these fraudulent processes, newer and more casual crypto holders are not as clued in. The very idea of having to avoid scams can deter some people from using and purchasing crypto altogether.
With this in mind, we’ve cobbled together a list of the most important tips that can ensure you don’t fall victim to phony crypto schemes.
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Protect and Monitor Your Crypto Wallet
So let’s say you opened your first crypto wallet using coinbase, Robinhood, SoFi, Phantom, or one of the many other options. That’s great! Just make sure you are using a crypto wallet that requires you to create or provides you with a private key. This is your ticket to accessing and moving your funds for the foreseeable future.
To that end, keep your private keys, well, private. If you must furnish a third party with your private key to complete an investment, it’s probably a scam.
On top of that, when you first open your wallet, make sure to further protect your account by testing the waters. For your first transaction, send only a tiny amount, just to make sure everything is copacetic.
If at any point, for whatever reason, you become aware of shady or unfamiliar activity (extra steps, the receiver having a different name, bizarre-looking updates), disengage from the transaction completely. Do not hesitate to log out of and uninstall that particular app, either.
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Don’t Fall for Overly Aggressive Advertising
Virtually every business requires some level of advertising. Crypto wallet and investment opportunities are no different.
Still, you should be incredibly mindful of too much marketing. If you see incessant YouTube ads for a coin, chances are it’s worth being skeptical or avoiding the opportunity altogether. The same goes for social media advertisements. Just because a company or coin is being spammed in your timeline doesn’t mean it’s legitimate. More than ever, it simply proves they are paying for exposure.
Feel free to research any opportunity you may stumble across. However, if an advertisement ever seems too good to be true based on promises or project returns or add-ons, then it’s exactly what it seems: too good to be true, and certainly worth avoiding.
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Beware of the Unknown and the New
Though newer coins and wallets can provide valuable investment or functional opportunities, you should approach them with the utmost caution. In particular, do not get seduced into purchasing fly-by-night coins just because they’re backed by a familiar name.
As one example, consider the infamous “Hawk Tuah” girl, Hailey Weich. After going viral for her person-on-the-street type interview response, she suddenly became a personality overnight. She was a meme. She started a podcast. Then, eventually, she released a crypto coin that turned out to be a scam.
People thought it was a worthwhile investment because of her notoriety. In these situations, though, the person releasing the coin can also be a victim. (For what it’s worth, it appears Ms. Weich was duped herself.) We have seen this happen with various social media personalities, celebrities, professional athletes, the whole nine.
Similarly, you should proceed with caution when thinking of using a new crypto wallet. Don’t ever download an application from a brand or company with which you aren’t familiar. A quick Google search or ChatGPT inquiry can shed light on the track record of any crypto wallet or investment opportunity. If you take a few seconds to anything with which you are not familiar, it could wind up saving you a bunch of money.
