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How to avoid fake ICOs and common scams with cryptocurrency

The cryptocurrency world is full of stories about people who either getting hacked for their precious digital currencies, or they are falling into scams and traps.

03.Nov.17 1:13 PM
By Daria Zaytseva


How to avoid fake ICOs and common scams with cryptocurrency

Due to the decentralized and open nature of the cryptocurrency world, protection is not offered freely. It is expected that users will be smart enough not to fall for fraud and traps, but that takes some work.

Here are a few known scams and tips on how to avoid them.

Fake ICOs

The ICO market and related insanity have been unprecedented lately. Scammers have also taken advantage of this insanity by creating fake ICOs.

Fake ICO is not so easy to spot, as some consider themselves legitimate. What you need to be looking for is proof of the endorsements and participation of authoritative figures, as well as a legitimate team.

The Whitepaper is also your approach to determine if the company has a clear plan and idea, or if they simply do not see anything special. Of course, some ICOs are not scams and are legal, but many still remain a trap and something that is best to avoid.

Wallet scams

Since most of cryptocurrency users use online wallets, they are also easy options for scammers that try and use to attack people's cryptocurrency stashes.

There are thousands of online wallets, but it is important that you choose one that deserves respect or that you have thoroughly studied and checked. An additional bonus is one that does not store your private key.

Fraud by email

Because emails are so easily out of order, they are ideal tools for scammers who can use to try pry digital currencies off people in scams.

Email scammers are often represented as wallet suppliers and often seek out people who are easily swinging to give out their private key. Typically, you should never have to pass on your private key, especially not by email.

Fake exchanges

Although there are thousands of purse suppliers, many of them scams and unreportable, the same applies to exchanges. Once again, it's important to be smart and savvy when deciding which exchange to use.

A general rule is that although smaller exchanges can be excellent, it is always better to use the services of large and popular exchanges. This can also help to avoid odd pricing and fluctuations.

As a rule, it is quite easy to detect a fake exchange if you have been in the world of cryptocurrency for some time; but for an absolute beginner it's best to use the popular and well-known ones.

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