Prevention Is Better Than Cure: 5 Tips to Avoid Crypto Fraud When Trading in 2021

There isn't a single lucrative business in this world that doesn't attract the attention of scammers. Almost every cryptocurrency exchange has its "full-time" experienced scammer. Below are useful tips on how to overcome scams in 2021.

Scams are more frequent COVID -19 times

Previously, CoinIdol, a global blockchain news outlet, reported that crypto investors lost about $80 million to scammers in the first quarter of 2021 alone, based on a recent report from the Federal Trade Commission (FTC). In 2020, over 80,000 crypto fraud cases were recorded in the US. The numbers could be even higher elsewhere in the world. Crypto fraudsters never rest and are constantly looking for better ways to steal on the web.

The different types of crypto fraud include phishing, a type of crypto fraud where the fraudster tricks victims into clicking on email links or text messages to get important information such as credit card details. Another common type of crypto scam is crypto fraud and examples include crypto crimes such as money laundering, fraud Initial Coin Offerings (ICOs), Ponzi schemes, among others. Crypto scams are unlawful deceptions meant for the personal gain of the scammers. Another type of crypto scam is crypto thefts and hacking. In February, scammers hacked Stakenet's crypto wallet and walked away with over $40,000 in crypto. 

But can traders get away with crypto fraud?

The above crypto fraud scenarios sound scary, right? But traders and the larger cryptocurrency community can deal with scammers in the digital financial market. 

"Too good to be true" offers are potential fraud avenues

When browsing the list of traders to do business with on crypto exchanges, it's best to choose those with extremely exciting offers with a bit of caution, otherwise a fair course with an authentic trading partner makes more sense. It is a good idea to compare the offers on the platform and work out the differences. Most crypto traders set the offers 10% higher or lower than the prevailing market price.

Reviews 

Most scammers have little crypto in their wallets and are just waiting to scam more from innocent crypto traders. An established trader should not only have small transactions but also be able to catch the big fish. While the number of positive reviews is important, transaction volume also matters. It is quite common for scammers to create multiple crypto accounts, load them up with a few tokens, and make transactions to generate positive reviews or simply get their fellow scammers to write positive feedback. Generally, numerous positive reviews from both sellers and buyers encourage traders.

Crypto exchanges are safer

Some scammers send emails with their crypto wallet addresses to get interested crypto traders to pay. This is extremely risky. Safer transactions take place within crypto exchanges under the control of an escrow agent. Conversations within crypto are safe, accurate, and fast. When trading on crypto exchanges, the terms and conditions for using the platform must be read carefully.

Becoming a crypto billionaire is a process

There is no such thing as "making a quick buck" in crypto trading. Crypto millionaires and billionaires have toiled to reach their current status. The small differences when you invest in crypto add up over time and pay off. Trade patiently and safely. Instead, spend more time researching market behaviour.

There are numerous ways that scammers try to cash in on crypto on the web. Scammers are sleepless and will do anything to get rich without working. If you are unsure how to handle a suspicious situation, you can contact CoinIdol by sending an email to info.coinidol.com.