Cryptocurrency scams on the rise: Here's how to remain safe

New Delhi: The advent of cryptocurrencies has given hackers the opportunity to take advantage of blockchain flaws and defraud millions of people all around the world. If the online crypto sector continues to draw new users at an unprecedented rate, the number of hacking incidents will rise in the next days and weeks. Between January and July of 2021, large cryptocurrency thefts, hacks, and fraud are estimated to have cost more than $650 million. Many more are still to be reported due to a variety of factors, including a lack of sufficient technological understanding.

Cryptocurrency, like any other industry, is susceptible to fraud and theft. On the other hand, advise investors to thoroughly comprehend the risks associated with dealing in digital assets. The best thing a trader can do to protect their capital is to become aware of potential hazards and typical blunders committed by others.

Here are a few tips:

1) Research thoroughly

Whenever possible, investors should devote time to thoroughly investigating the cryptocurrency or other digital asset they wish to invest in. They might begin by visiting the official website of the cryptocurrency initiative. Find out more about the company's founders, developers, and current backers. Find out where you can purchase the project. These should provide an early sense of whether or not the project is viable.

2) Imposter websites

Do not be fooled by fake websites. A surprising number of imposter websites that look just like the official website are created on a regular basis. Amateur investors frequently fail to distinguish between legitimate and phoney investments. If you're unsure, ask individuals who have worked in the sector for a while. Phishing emails should be avoided at all costs.

3) Fake mobile apps

Another line of defence is to only download crypto trading or exchange apps from trusted sites. Scammers frequently use bogus apps to deceive investors. Despite the fact that phoney apps are swiftly recognised and banned, they are not going away anytime soon. Look for glaring spelling errors in the copy or the app's name. Consider whether the branding is fragile or whether the logo is wrong.

4) Pay attention to smart contracts

Smart contracts are codes on the blockchain that carry out a set of instructions. Although they are technical, they usually aid in the understanding of a crypto project's overall potential. There could be flaws in the project if there is a problem with the smart contract.

5) Keep your wallet safe

Finally, take care of your pocketbook. Every wallet has two keys: a private and a public key. Under no circumstances should the private key be shared with the public. Wallets, however, have hazards, and cold wallets are usually the safest way to keep private keys.