Business Investing: How To Prevent Crypto Fraud

Scammers are always looking for new ways to get your money. The massive proliferation of solana vs. ethereum cryptocurrencies over the past few years gives them plenty of opportunities to do so.

solana vs. ethereum

Solana vs. Ethereum business investing: How to guard yourself against cryptocurrency fraud

Safeguard your wallet

Investing in cryptocurrency requires a wallet using private keys. If a company asks you to provide your keys as part of an investment project, it is most likely not a legitimate business. Your wallet keys are your own business.

Monitor your wallet app

For the very first transfer, only send a small amount to verify that the crypto wallet app is legit. If you find anything suspicious while updating your wallet app, cancel the update and uninstall the app.

Only invest in assets you understand

If it’s not clear how a particular cryptocurrency works, you should do more research before deciding to invest.

Take your time

Scammers often try to put pressure on you to invest your money quickly, for example with bonuses or discounts if you jump in right away. Take the time to do your own research before directing any funds.

Beware of Social Media Ads

Crypto scammers often advertise their schemes on social media. There they then use non-approved pictures of celebrities or well-known business people to feign seriousness and lure them with advertising gifts or gifts of money. Be skeptical about crypto offers on social media and scrutinize them carefully.

Dubious cold calling

If you are contacted by phone out of the blue with an offer to invest in cryptocurrencies, it is probably an attempt at fraud. Never give out personal information over the phone or transfer money to someone who contacted you in this way.

Do your own research

There are no scams behind the most popular cryptocurrencies. But if you’ve never heard of a cryptocurrency, you should do some research first. Find a white paper to read, find out who issues cryptocurrency and how it works, and look for real reviews and testimonials. You can also check an up-to-date and trustworthy list of fake cryptocurrencies to see if you are dealing with an attempted scam.

If it’s too good to be true

Don’t trust any company that guarantees the success of your investment or wants to make you rich overnight. Be wary of offers that seem too good to be true.

Ultimately, the same applies to cryptocurrencies as to any other financial investment. Never invest money that you cannot get over losing. Even if you don’t get scammed, cryptocurrencies are volatile and speculative. You should be aware of these risks.