Cryptocurrencies are a polarising topic. Some love them while others totally hate them. Undoubtedly the number of users has grown significantly in 2021, but also the number of scams out there. In this second part of the column started last week, we will see more ways to avoid the most common scams in crypto.
5. Protect your personal information
It is crucial to be careful not to disclose personal information, such as your wallet address or private keys, to anyone you do not trust. Scammers may try to trick you into revealing this information in order to steal your funds.
Make sure to keep your personal and financial information private and be cautious when sharing it online. Use strong, unique passwords for your accounts and wallets and enable two-factor authentication to add an extra layer of security.
6. Seek advice from a financial professional
If you are considering investing in cryptocurrency, it may be a good idea to seek the advice of a financial professional. They can help you understand the risks and potential rewards of investing in cryptocurrency and provide guidance on how to protect your assets.
A financial professional can also help you to create a diversified investment portfolio and provide guidance on how to manage your risk. This can be especially helpful for those who are new to investing or who are not familiar with the cryptocurrency market.
7. Be wary of unsolicited offers
If you receive an unsolicited offer to invest in cryptocurrency, be cautious. This is especially true if the offer is from someone you don't know or if it seems too good to be true. It is best to do your own research and make your own investment decisions rather than relying on unsolicited offers.
8. Avoid unfamiliar websites
Be careful not to enter your personal or financial information on unfamiliar websites. Scammers may try to trick you into visiting a fake website that looks legitimate in order to steal your information. Only enter your information on websites that you trust and be sure to double-check the website's URL before entering any sensitive information.
9. Use strong passwords
To protect your accounts and wallets, it is important to use strong, unique passwords. Avoid using the same password for multiple accounts and consider using a password manager to help you create and manage strong passwords.
10. Enable two-factor authentication
Two-factor authentication (2FA) adds an extra layer of security to your accounts and wallets by requiring you to enter a code in addition to your password when logging in. This code is typically sent to your phone via text message or generated by an app. It used to be something to consider as an extra layer of security, but nowadays it has become absolutely essential.
Enabling 2FA can help to prevent unauthorised access to your accounts and wallets and can be an effective way to protect your assets. Be sure to set up 2FA on all of your accounts and wallets that offer it.
By following these tips, you can help to protect yourself from crypto scams and ensure that you are making informed, well-thought-out investment decisions. It is important to remember that investing in cryptocurrency carries risks, and it is always important to carefully consider the potential rewards and risks before making any investment.