Cryptocurrency trading has recently garnered a lot of traction. While cryptocurrencies began as a technological experiment, they have since grown into a global phenomenon. There has been a dramatic increase in cryptocurrency investment and trade. However, with the growing amount of cryptocurrencies accessible for trading, investing and trading in cryptocurrencies might be intimidating.
Cryptocurrency exchanges provide a valuable venue for purchasing and selling digital assets. However, many of these exchanges are still unregulated and vulnerable to fraud. Scammers have created fake cryptocurrency exchanges and manipulated trading volumes on ostensibly credible exchanges to entice potential investors and defraud them. Users may be harassed, cryptocurrency withdrawals may be denied, exorbitant fees may be charged, or your entire investment may be lost.
Experts advise only using trustworthy exchangers to avoid these frauds. Before creating an account on an illicit website, you should learn to recognize the signs.
1. Check to see whether you’re on the right site
Scammers have preyed on cryptocurrency traders in recent years by creating phony website landing pages that look identical to the real thing. The imitated exchanges, like the-newsspy.app, are well-known. The sites collect information about you, including passwords, which can be used to send money from your real wallet.
Look for the green ‘HTTPS’ tag in the address bar just before the URL of a real website when logging into an exchange. Fake websites almost never bother with ‘HTTP’ authentication. Furthermore, the rates of counterfeit swaps are not updated in real-time. By manually entering the exchange’s URL into the address box, you may be certain that you are on a legitimate website. A more natural approach is to add the frequently visited pages to the toolbar of your bookmarks.
2. Verification Process
Many of us find the process of signing up for any service to be tedious and frustrating. But given that it could take up to several days to verify your identification, you should approach this process from a different perspective to secure your money. Genuine exchange platforms implement rigorous verification processes to guard against money laundering and other types of scams for both the exchange and its consumers.
Before a user may withdraw or deposit money, the great majority of cryptocurrency trading platforms demand some type of ID verification. However, you may be able to maintain your anonymity in some legitimate deals.
3. Don’t fall for guaranteed rates of return
A risky investment is a cryptocurrency. Although it may be less dangerous than other investments or give better rates of return, there is always a chance that you could lose your money with this investment. Guaranteed rates of return are usually a red flag for fraud. Even if an exchange could seem promising, if it offers a 100% guarantee, red flags should go up.
It’s usually true if something seems too good to be true. Apply the same common sense principles while using a digital currency as you would when trying to purchase a car online. It’s always advisable to double-check a transaction, even if it makes sense.
4. Look for security features
It goes without saying that a safe crypto exchange is necessary. Keeping coins in exchange is putting your money in the hands of another person. Investors typically walk away empty-handed if the exchange is hacked or a worker steals coins.
Most exchanges have a section of their websites dedicated to explaining their security procedures. While it might be challenging to determine which cryptocurrency exchange is the most secure, given that no exchange is completely secure, you might want to focus on those that have been operating for the longest period, have the most users, and have experienced the fewest issues.
Consider platforms that provide the following when considering security:
- A great initial step to preventing password hacking is 2-factor verification (2FA).
- A “KYC” policy (know your customer). This promotes platform integrity and is currently a legal requirement for the majority of exchanges.
- A method of storing data where the majority of the data is kept in cold, offline storage.
- Advanced, multi-layered protection is frequently upgraded to counter the most recent threats and attacks.
5. Fake mobile apps
If you’re not vigilant, ignoring the warning indications on fraudulent apps is simple. These frauds typically instruct victims to download harmful software, some of which seem well-known.
Everything might appear to function as expected once the consumer downloads a malicious app. These programs, however, are made deliberately to steal your cryptocurrencies. In the cryptocurrency industry, there were numerous instances where people downloaded fraudulent apps whose creators pretended to be a well-known crypto organization.
When a user is given an address to fund their wallet or to receive payments, in this case, they are sending money to the fraudster’s address. Of course, there is no way to reverse a transfer of funds after it has been made.
These frauds’ ranking positions also contribute to their exceptional effectiveness. Despite being malicious, certain apps can achieve high rankings in the Apple Store or Google Play Store, giving them the appearance of being legitimate. Only download from the official website or a link provided by a reliable source in order to avoid falling for their tricks. When utilizing Apple Store or Google Play Store, you may want to verify the publisher’s credentials.
6. Handling the customers
Even the best cryptocurrency exchange app can occasionally experience issues. Particularly new customers could have several inquiries about the fundamentals of cryptocurrency and how the exchange functions.
Customer help may be required immediately, especially if money is on the line. Fast-moving cryptocurrency markets make it risky to wait days for a response from customer service.
Investors should therefore research the standing of an exchange’s customer care team. Do they react promptly? Are consumers satisfied in general? Does the transaction make a point of highlighting exceptional customer service?
There is no shortage of methods available to dishonest actors for stealing money from trusting bitcoin consumers. You must always be on the lookout for scams being employed by these parties if you want to avoid falling victim to the most prevalent ones. Always make sure you’re using official websites or apps, and always remember that if an investment seems too good to be true, it generally is.