How to Stay Safe in Crypto Trading: How To Avoid Getting Scammed

How to stay safe in crypto trading

1. Stay away from ICOs that require a big investment to acquire their coins or tokens. You shouldn’t send money to a person or a company you don’t trust, regardless of how much they promise to reward you. For example, BlackCoin’s biggest competitor, BlackCoinDEX, promises to provide massive returns to investors in exchange for their money and skills. Even though BlackCoin’s main team is disputing the legitimacy of BlackCoinDEX, investors are advised to consider the project seriously before making a decision.

2. Also beware of mysterious websites promising instant investments in crypto-based projects. Though these websites may be legitimate, you’re unlikely to receive a refund if the project doesn’t meet its financial goals, since the payouts are made in a cryptocurrency such as Bitcoin.

Blockchain is the key

The three leading cryptocurrency wallet providers – Coinbase, Blockchain, and Bitstamp – allow users to convert dollars into digital tokens for cryptocurrencies such as Bitcoin, Ethereum, and Zcash. For everyday folks, these services make cryptocurrencies easy to use. However, each of these companies also serves a business clientele. In other words, you need to have a good understanding of how these businesses operate to know the difference between what’s good for the customer and what’s good for the company.

Scammers are all over the place, and they use every trick in the book to try to get people to part with their money. It’s important to keep in mind that security is just as important for crypto wallets as it is for anything else.

What is a scam?

The harm that a cryptocurrency scam can do is serious, and if you fall victim to one, it’s a real crime. With scammers, there are no rules or regulations. The victims are often confused and unaware, and the illicit cash is not always spent for good. Scammers may put your money into a Ponzi scheme or invest it into hard-to-trace “pyramid schemes” that don’t exist, leaving the victim with nothing.

How to stay safe in crypto trading: tips

For most crypto scams, experts warn that it’s wise to avoid taking out any more money than you actually need. Like all investment decisions, it’s crucial to think through the risks.

Despite how easy cryptocurrencies and blockchain technology make it to reach your bank accounts, there is a reality check.

How to avoid getting scammed?

CoinStak’s main goal is to help traders avoid getting scammed. Founded in July 2017, CoinStak has an extensive knowledge of the cryptocurrency market and a team of experts who are ready to help you understand the global crypto market and all the different options available. CoinStak also provides tools that help traders keep track of their wallets and bitcoin accounts.

To make crypto trading safer, CoinStak also provides investors with a full platform with industry-related news, services, tools and tools to report a problem. CoinStak is also currently investing in startups that have smart contracts and shared ledgers to enable companies to gain trust, audit and enforce agreements on the blockchain.

Conclusion

Cryptocurrencies and crypto exchanges have become a much more prevalent part of our society over the last few years, but they still remain highly unregulated and unsafe.

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