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Avoiding scams

Don’t get caught in the crypto web

The exciting, yet volatile world of cryptocurrency comes with inherent risks, and scams are unfortunately prevalent. But fear not, informed vigilance can be your shield! Here are key points to remember: 

Promises of guaranteed profits: If something sounds too good to be true, it probably is. Be wary of anyone promising guaranteed returns in crypto, as the market is inherently unpredictable. 

Unsolicited offers: Legitimate investment opportunities rarely come knocking on your door (or inbox). Ignore unsolicited messages, calls, or social media promotions about crypto investments. 

Sharing private keys: Your crypto wallet’s private keys are your gateway to your funds. Never share them with anyone, no matter how convincing the story. 

Pressure and urgency: Scammers often create a sense of urgency or pressure to act quickly. Take your time, do your research, and never feel rushed into making a crypto investment. 

Unrealistic returns: Don’t fall for promises of overnight riches. Crypto is volatile, and significant gains are rarely achieved quickly or easily. 

Fake platforms and websites: Be cautious of unfamiliar platforms or websites offering crypto services. Always double-check URLs for legitimacy and only use established, reputable exchanges. 

Pump-and-dump schemes: These scams involve artificially inflating a cryptocurrency’s price through coordinated buying, then dumping it once others invest, leaving them with losses. Be wary of sudden price surges and do your own research before investing. 

Do your research: Before investing in any cryptocurrency, thoroughly research the project, its team, and its technology. Understand the risks involved and only invest what you can afford to lose. 

Diversify and secure: Don’t put all your eggs in one basket. Diversify your crypto portfolio and prioritize secure storage solutions like hardware wallets for your private keys. 

By staying informed, exercising caution, and following these tips, you can navigate the crypto landscape with confidence and avoid falling victim to scams. Remember, responsible investing and a healthy dose of skepticism are your best defense. 

About This Author


Ross Bentzler

Ross Bentzler is Executive VP and Information Security Officer for Alpine Bank. Ross has worked in the information technology field for two decades, focusing on information security for 13 years.

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