Bitcoin News – How To Avoid Fake ICOs, And Crypto Scams ?
November 6, 2017 11:18 am
The cryptocurrency world comprises of those people who are either getting hacked, or they are getting into scams or traps. Because of the decentralized and open source nature of the platform, security is not offered freely. Users are instead expected to be technical enough to not get into any scams, but that takes some hard work.
Following are some of the critical types of scams with tips to avoid them:
- Fake Initial Coin Offerings
The ICO market and its associated platform have been unprecedented in current times. In the form of a crowdfunding exercise, industries have been seeing millions of dollars roll in just a few minutes as people intend to invest in the cryptocurrency.
Though, scammers have also taken benefit of this platform by making up fake ICOs.
Fake ICOs are not easy to detect, as some consider themselves that they are legitimate enough. One should be searching for proof of endorsements and also the participation of prominent figures, a genuine team.
The Whitepaper is also an excellent option to know if the company has definite plans, ideas, or they are just waffling on about nothing specific.
It’s evident that some ICOs are legitimate and not scams, but many are still scams and must be avoided.
- Wallet related scams
As the majority of virtual currency users prefer using online wallets, they also prove to be convenient options for scammers to try and attack cryptocurrency stashes of people.
There are a lot of online wallet options out there, but it is essential to choose one that is reputable, or you should research adequately. A preferable one should be the one that doesn’t store your private key.
- Scams associated to Emails
As emails are easy to be dished out, they are the most targeted tools for scammers to try and pry virtual currencies of people in scams.
Currently, some Blockchain enthusiasts received emails from an address stating to be MyEtherWallet. They were asked to log into a fake version of the site to restrict losing their funds.
Email scammers generally pose as wallet providers and search for people who get easily swayed to reveal their private key. As a strict rule, one should never hand over his/her private key, specifically not through email.
- Fake exchange platforms
Though there are several wallet providers, many of them are scams; the same is applied to exchange platforms. It is again essential to be savvy enough while trusting on an exchange platform to use. Prefer to use big and famous exchange platforms to perform safe exchanges.