Cryptocurrencies have exponentially grown in popularity over the nine years since the launch of Bitcoin, the first ever cryptocurrency. As such, criminals have devised cunning ways to steal cryptocurrency from unsuspecting individuals. Here are some suggestions of ways in which one can avoid cryptocurrency scams:
#1. Keep all keys and passwords in a safe location.
Coin wallets usually have two keys: a private key and a public key. A public key is used to transfer funds while a private key is used for accessing a cryptocurrency wallet. A private key, as the name suggests, should be kept private. At no single time should a coin wallet holder share a wallet’s private key with a third party.
#2. Use a two-factor authentication method for your wallet.
A two-factor authentication secures a cryptocurrency user’s wallet account from hackers. Upon login, the two-factor authentication mechanism sends either an email or a text containing a one time password to a user’s phone. Because of the additional layer of security, it becomes hard for a hacker to access the wallet even after cracking the password. The hacker would still need to have access to your phone.
#3. Choose a third-party cryptocurrency service carefully.
Before settling on a wallet service, a cryptocurrency user should conduct thorough due diligence. While there are many legitimate cryptocurrency wallet apps out there, there are some that are out to scam unaware coin buyers. Since the launch of the first cryptocurrency back in 2009, investors have lost billions of dollars through fake wallet scams.
#4. Conduct research before investing in a cryptocurrency company.
Cryptocurrency scammers typically launch their companies with colorful adverts specifically designed to woe investors as fast as possible. The company then collects funds under the guise of trading in cryptocurrencies to the detriment of its investors who end up losing their hard earned money once the fraudulent company vanishes in thin air.
#5. Only download wallets from a company’s website.
Malware developers are able to code malware that has the logo and name of a legitimate wallet app and upload it on to google play store. When an unsuspecting coin holder downloads the “wallet app”, his coins are easily stolen from his wallet. This mimicry tactic can be avoided by strictly following the download link provided by the wallet app’s parent company.
All in all, cryptocurrency users who have read through the above tips will have a much easier time in securing their hard-earned coins than those who haven’t yet.