Amid the rising popularity of Cryptocurrency, a possibility has opened up where hackers could exploit the loopholes present in the market and scam a lot of people worldwide.
The industry experts have warned that if there is a large number of people getting attracted to Cryptocurrency, it would also attract hackers and scammers to take advantage of the loopholes present in the industry.
It was already estimated by some people that in January and July this year, in significant Cryptocurrency, more than $650 million was targeted in frauds, thefts, and hacks.
Due to a lack of proper understanding of this technology, it is also estimated that there are more scams, hacks, and thefts which are yet to be reported.
Cryptocurrency, just like any other industry, is not totally immune to increasing scams and thefts.
The investors are therefore warned by the industry experts that while they are investing in these digital assets, they should first understand the risks involved in trading.
In order to keep their investments safe, a trader should fully understand the technology and the scams, hacks, and thefts which are possible due to loopholes associated with it. The trader should also learn from common mistakes made by others and the potential pitfalls.
Some of the few tips and suggestions by the experts are enumerated below:
1. The investor itself should thoroughly research the crypto or any digital asset an investor is investing in. The investor should begin with the crypto project’s official website. The investor should also research its current backers, developers, and founders; also, it should be researched that where the project is available for the investor to buy. These little things would help make the investor clear his doubts on whether they should buy the asset or not.
2. Another tip from experts is that the investor should always download the exchange or trading apps through verified sources only. Downloading apps from unverified sources might lead the investor to get tricked by several scammers. However, these apps are easily identified and removed, but it does not mean that these fake apps will not be there on the internet. The investor should thoroughly check the app’s interface, look for spelling mistakes, and should ask themself whether the branding is flimsy or the brand has an incorrect logo.
3. Just like fake apps, there are fake websites too that are made by scammers. Investors who are beginners should ask or take some advice from people who have been in the crypto industry for a long time and should learn from them how to identify fake or impostor websites. The investor should also beware of phishing emails.
4. At last, the investor should protect their wallets. There are two keys all wallets carry, one is public, and the other is private. It should be ensured by the investor that no matter what, the private key should not be accessible by the public, other than themself. There are cold wallets in Cryptocurrency that are the safest way to keep your private keys.
Despite taking all these steps, there are still chances of possible scams and thefts, and the investor should always be careful before downloading or surfing on any website.