5 Crypto Red Flags To Look Out For
Crypto investment has enjoyed significant growth in recent months as political environments have become more welcoming. This has seen crypto values increase, and more businesses than ever before have made moves to accept crypto as a payment method.
As with any investment, those interested in crypto will have to exercise caution and keep an eye out for potential pitfalls.
Crypto Benefits
Crypto investment holds a lot of benefits, including the potential of seeing massive returns if cryptocurrencies rise in value.
As well as being a great investment opportunity, it has also become a popular way to carry out online transactions, especially when they involve other countries.
Cryptocurrency transactions are typically quicker and have lower fees than fiat currencies. Using crypto also removes the need for unfavourable exchange rates to impact the value of a transaction.
The use of blockchain technology improves transparency and security, and it also makes it easier for consumers to remain anonymous online. Keeping sensitive personal information and bank data secure is a challenge for the modern consumer, with so many retailers and service providers requiring this.
Crypto offers an alternative to these, and the list of 99Bitcoins best no KYC crypto casinos is a perfect example of this, allowing consumers to place bets online without providing ID or bank details. This significantly reduces the risk of information falling into the wrong hands.
Crypto Red Flags
With so many benefits, it was inevitable that cyber criminals would target crypto investors in one way or another. Consumers are advised to stick with reputable crypto exchanges and remain vigilant for potential scams.
Unfortunately, cybercriminals are constantly updating their sophisticated techniques to try and catch people out.
Promises that Seem Too-Good-to-be-True
Anyone investing in cryptocurrencies will have hopes that it will perform well and produce a good return on investment. This can make it easier for scammers to target them by hyping up investment opportunities or making promises that they can’t deliver.
Anone investing in cryptocurrencies should do their due diligence and research the crypto opportunity thoroughly. In addition to checking the whitepaper and road map for the project, consumers can also research who is involved and how well it has been received online.
Looking at external and independent reviews, as well as gauging its social media presence should help to identify genuine opportunities.
Unsolicited Advice
Another popular scam sees people offering unsolicited advice in an attempt to get people to invest in poor opportunities that won’t have good returns, or fake cryptocurrencies. While this might seem like an obvious tactic, many cybercriminals have become masters of deceit.
There have been instances where people have been scammed out of savings by people on social media. Many of these are long con type scams where people befriend others on social media, typically about topics with nothing to do with crypto or investment.
They can then spend months building a relationship, regularly communicating and building trust gradually by sharing details about their personal life. By the time they begin to implement the scam, they will have already built a bond, and they can then mention something in passing about making money from crypto.
As the conversation develops, they can send a link to a fake website that is designed to look legitimate. Starting small, the fake site would show growth before they are encouraged to invest larger amounts.
Endorsements from Celebrities
Celebrity endorsements work for a range of products, but how much do they really know about investing in cryptocurrencies? Sponsorship deals are a way for celebrities to make money, and they are under no obligation to learn more about the crypto they endorse, or for investors to get a return on it.
Another worry is that high-quality AI can now be used to mimic celebrities, so they might not even know about being used in an advert.
Payment or Key Requests
If you are approached by someone with an investment opportunity who is looking for payment upfront, access to private keys, or is putting time limits on when you can invest by, alarm bells should be ringing.
While there will be an element of time-sensitive investments, you should never feel pressured into buying cryptocurrencies before you have had an opportunity to research it properly.
Fake Crypto Exchanges or Wallets
All that glitters is not gold, and all sites that look legitimate are not necessarily so. Following links online to crypto exchanges or wallet options can be risky, especially if the link is not from a trusted source.
Cyber criminals can spend a lot of time and money creating fake sites that work in the same way as legitimate alternatives. This can lull consumers into a false sense of security and result in them making multiple investments before they realize.
The opportunity to enjoy a good income through digital assets is appealing to many, but proceeding with caution is advised.