Preventing Crypto Scams: 7 TipsSimone
What sounds too good to be true often is.
Combine this cliché with the proverb 'a forewarned man counts for two' and you immediately understand why we wrote this article. Crypto scams are unfortunately the order of the day, and people sometimes lose the perk they were so happy with, but sometimes even home and hearth. Do you want to invest money in crypto, to hopefully reap the benefits later? Then read this article with 7 tips to prevent crypto scams.
What is crypto?
Let's start at the beginning. Because, what exactly is crypto? Cryptocurrencies, often referred to as crypto(s), are digital money. The word says it all: currencies. Crypto can therefore be used to pay, but is different from tangible money such as the Euro. Cryptos can only be found online in the form of an encrypted code. You can think of it as a kind of password. Crypto contains a digital value, which is separate from the determined currency. Instead of a currency, there is an algorithm behind the value of this digital currency. In addition, the crypto currency can be used more and more as a payment method.
For many people, crypto has been known since the advent of Bitcoin, still one of the most well-known cryptocurrencies. However, there are now many more cryptos on the market and there are almost countless platforms through which these coins can be bought and traded. In addition, the Stablecoin has also secured a place in our contemporary financial society. With Stablecoin, the value of the digital currency is not linked to an algorithm, but rather to measurable values, such as the price of gold.
When is it a crypto scam?
If you invest your money in crypto, it is never certain that you will get your desired return from it. In fact, investing in crypto is in all cases a gamble. You hear stories of people getting rich from it, and that is certainly possible. But don't see golden mountains in front of you. Besides the fact that you can lose money yourself through a bad bet, there are also scammers on the market. Due to the digital aspect of the coin, staying anonymous is easy and creating your own coin is also possible without too many problems. Unfortunately, this has created a popular place for criminals. There are a number of crypto scams that we see more often. We are happy to list a few for you:
A common overarching signal is that the platform or website is difficult to reach after a while. You will no longer get hold of anyone, and you will no longer receive a response to your emails. Moments later, the platform has completely disappeared from the sky and the scammers have run off with your money for good.
7 tips against crypto scams
Of course you want to avoid the above at all costs. No one wants to be scammed and lose their hard-earned money to scammers. We share 8 tips that will help you recognize scams in time, so that the chance that you become a victim of crypto scams is greatly reduced.
Tip 1: Watch where you put your money
It may sound very simple and obvious. But watch where you put your money. Do your research, Google the platform and your contact person and read if there are experiences from other people. Is the platform new and the promises too good to be true? Or do you receive an offer that makes you think: this is not possible? Then don't go along with it.
Tip 2: Make use of reputable parties
Buy crypto? Then don't do this on platforms, also called exchanges, that don't look professional or where you read bad (or no) information about it. In the Netherlands, for example, you can safely use crypto.com (our choice) or bitvavo, Coinbase and crack. All platforms that are safe and professional, have many reviews and have been around for a while. These platforms are suitable for starters to experienced crypto investors. Bitvavo is the market leader in Europe and is also positively known in the Netherlands for the Dutch support they offer. Curious about experiences from other platforms? Then check trust pilot. Here you can find many platforms, including user reviews.
Are you a true beginner? Then is Blox a good option. This is a simple 'exchange' app with few options, which makes it easy. You can also pay out at the touch of a button. A good and safe basis to start with crypto. On the other hand, you do pay higher costs for actions that you perform via this platform.
Tip 3: Got offers over the phone? Do not!
Are you being called to invest in crypto? Real exchanges do not do that and then it is often fraud. Again, these are offers that sound too good to be true, and they are. They are often temporary 'actions' in which you immediately have to make a choice and often even immediately have to perform an action. The way for criminals to get away with your cryptos, and therefore money. Don't get carried away with a (too) good offer.
Tip 4: Check with a professional
Are you still fairly new to the world, are you about to make large(r) investments or do you want to have your bitcoins exchanged for money? Involve a true professional in this process to make sure you don't miss anything. We are one of those professionals who can help you with this. We have experience and expertise in crypto research. We have knowledge of different crypto currencies, and can investigate how they came into existence, who are behind them and of course check their security. Do you want to have your bitcoins paid out in cash? Then we can also assist in this with our verified, honest buyers.
Tip 5: Learn to be patient
Crypto success, like many other successes, does not happen overnight. The golden rule is to have patience and not to panic at every trough and to cash in at a peak. You have to be patient if you want to make a success of trading in crypto. Does it stress you? Then crypto is not suitable for you.
Tip 6: Always document everything properly
As with all financial matters, it is important that you have your administration in order. Document your affairs well. If it ever comes to an investigation, at least you have everything in order. In addition, it is also nice for yourself to always be able to see which path you have walked. Document the transactions, but also all communications. You never know when it will come in handy.
Tip 7: Don't let yourself be (too) afraid of crypto
And lastly, don't be put off. Crypto is a great opportunity in a relatively new market. When you know what you are doing, you do not bet amounts that you cannot afford to miss, you delve into the parties you work with and ensure that you remain up-to-date and sharp, crypto can also yield very nice things.
Crypto is a great opportunity, as long as you use it wisely
The conclusion is that you don't have to be afraid to trade in crypto, but that you do need to know what the risks are. And that you should not let yourself be ensnared by the scammers who unfortunately find themselves in this world. Also remember that crypto research possible, and that every transaction is always traceable. Unfortunately, this often takes a lot of time, and is also an investment. So it is best to make sure that you follow the tips and do not end up in this situation. Does it happen? Then we are there for you. Good luck and have fun too!