Bitcoin has grown rapidly in 2017. And for a period of time there was a large black market of illegal activity for it. Now that there is more regulation involved with the cryptocurrency security of individuals is a point of interest to investors, yet a breach can still happen to anyone.
What are some potential scams that the average bitcoin buyer may run into?
One of the more prominent methods for keeping bitcoins is through an online wallet. Using the right wallet will help protect you from this potentially risky public storage space. The addition of two way authentication and other forms of identification make wallets much safer.
Be wary of fake exchanges. Using the more popular and well known exchanges will decrease the likelihood of being scammed. The larger exchanges also help in reduce the chances of random price fluctuations. This however does not mean that the smaller exchanges are not safe.
Initial coin offerings can be one of the more adventurous ways to use bitcoins. When invest into one verifying the legitimacy is the most important aspect. Verifying the involvement of people listed as well as endorsements is key. However the largest risk for ICO investments is the risk of failure. ICO are meant for start up businesses, and the only way to collect on the investment is for it to succeed.
Everyone gets spam emails at one point or another. And sadly the bitcoin world is no exception. Signing up for online services with your email can leave footprints for 3rd party ads, and in turn for people interested in your cryptocurrency. Verifying the spelling and names of your inbox will help prevent any breaches of information.
Web and application developers utilize programs that will support their project, and example of that is Slack. In Slack testers and investors alike can communicate with the developer team. Scammers sometimes use automated programs to send emails out to users impersonating the actual developers. They will ask you to click a link which will lead to a phishing site, opening all your log-in information to the scammer.
Staying safe in the digital age requires the knowledge of what to look out for. With cryptocurrency on the way up there will be more scammers than before. Protect your information the best you can with this knowledge.