Crypto Basic Universal Recomendation – 2022
( Wild Wild West / Crypto )
I) 'Not your keys, not your coin'
'Not your keys, not your coin' essentially means that
if you do not have control over your private keys,
then you do not actually 'own' your crypto.
The well-known saying was popularized by Andreas Antonopoulos:
“Your keys, your bitcoin. Not your keys, not your bitcoin.”
II) Use a Cold Wallet for your main Coins Reserve, The most recommended for this purpose are Ledger or Trazor.
III) Diversify your investment,
Don't put all your eggs in one basket, Invest only the capital you are willing to lose.Think long term.There is no such thing as sudden overnight success. Educate yourself and find a good mentor.
IV) Don't be fooled by scams, the crypto world is now like the wild wild west, a fertile ground for a variety of scams,
Now I will talk about the most popular scams for now, I hope this information will help you to avoid falling into some of them and so you can make better decisions when deciding to invest.
Ponzi
schemes
Ponzi schemes pay their older investors out of the earnings of new investors. Bitcoin will be used by cryptocurrency crooks to entice new investors. Since there are no reliable investments, the strategy is a money-making scheme that goes in circles.
The promise of enormous riches with little risk is the core allure of a Ponzi scheme. However, there are always dangers associated with these investments, and no profits can be guaranteed.
Fake cryptocurrency exchanges
Scammers might entice investors with claims of a fantastic cryptocurrency exchange or even extra bitcoin. However, there isn't really an exchange, and the investor doesn't realize it's a scam until they've already lost their money.
To avoid an unfamiliar exchange, stick to well-known cryptocurrency exchange marketplaces like Binance, Coinbase, Crypto.com, and Cash App.
Before entering any personal information, do some research and look for information on the exchange's repute and legitimacy on industry websites.
Bitcoin investment schemes
Scammers approach participants in bitcoin investment schemes under the pretense of being seasoned "investment managers."
As part of the scam, the so-called investment managers make extravagant claims about their success investing in cryptocurrencies and assure their victims that their investments will be profitable.
The con artists demand a payment up front to begin.
The crooks then simply steal the upfront payments rather than make money.
In order to access someone's cryptocurrency, the con artists may also ask for personal identity information under the pretense that they need it to transfer or deposit money.
The use of phony celebrity endorsements is a different kind of investment scam.
In order to make it seem as though the celebrity is endorsing a significant financial benefit from the investment, scammers take authentic images and superimpose them on false accounts, advertising, or articles.
These assertions come from sources that seem credible because they use well-known brand names like ABC or CBS and have polished websites and logos.
But the endorsement is a fraud.
Rug pull scams
In rug pull schemes, fraudsters "pump up" a new business, nonfungible token (NFT), or coin to attract investors.
The con artists simply vanish with the money after obtaining it.
These investments' software forbids anyone from selling bitcoin after buying it, leaving them with a worthless investment.
The Squid coin scam, which took its name from the well-liked Netflix comedy Squid Game, is a common variation of this scam.
To earn cryptocurrency, investors had to play: People would purchase tokens for online games and later earn more to trade for other cryptocurrencies.
The Squid token's value increased from one cent to almost $90 per token.
Trading eventually ceased, and the funds vanished.
As users tried to sell their tokens but were unsuccessful, the token value eventually fell to zero.
Over $3 million was obtained from these investors by the con artists.
Rug pull scams are also prevalent for NFTs, unique digital assets.
Romance scams
Cryptocurrency scams are not new to dating apps.
These frauds involve relationships that are established gradually over time, usually through long distance and only online communication.
One party gradually persuades the other to give or purchase money in cryptocurrency.
Once they have your money, the dating scammer vanishes.
These frauds are additionally known as "pig slaughtering frauds."
Phishing scams
Although they have been around for a while, phishing schemes are still widely used.
Scammers send emails with malicious links to a bogus website in order to collect personal information, such as the private key for a bitcoin wallet.
Users of digital wallets only only receive a single, unique private key, unlike passwords.
However, it is difficult to replace a stolen private key.
Since each key is exclusive to a wallet, a new wallet must be made in order to change this key.
Never enter secure information from an email link to protect yourself against phishing schemes.
No matter how trustworthy the website or link looks to be, always go directly to the page.
Man-in-the-middle attack
Scammers are able to access bitcoin users' private information when they log in from a public place.
Any data exchanged over a public network, including passwords, bitcoin wallet keys, and account information, is susceptible to interception by scammers.
A hacker can obtain this private information whenever a user is logged in by employing a man-in-the-middle attack strategy.
When trusted networks are nearby, Wi-Fi signals from those networks are intercepted.
Utilizing a virtual private network to block the middle man is the most effective defense against these assaults (VPN).
All data being transmitted is encrypted via the VPN, preventing hackers from accessing personal data and stealing cryptocurrency.
Social media cryptocurrency giveaway scams
Social media sites are flooded with fake posts that advertise bitcoin giveaways.
To entice consumers, some of these scams also use phony celebrity accounts to promote the offer.
However, when a user clicks on the promotion, they are transferred to a phony website that requests verification in order to send them bitcoin.
Making a payment as part of the verification process demonstrates the legitimacy of the account.
The victim runs the risk of losing this payment or, even worse, clicking on a malicious link that results in the theft of their personal data and bitcoin.
Employment offers and fraudulent employees
In order to gain access to bitcoin accounts, scammers will often pretend to be recruiters or job searchers.
By using this trick, they provide a compelling job while demanding cryptocurrency in exchange for work training.
Scams involving the use of remote employees exist as well.
For example, North Korean IT freelancers are attempting to take advantage of remote job opportunities by putting up outstanding resumes and stating that they are based in the United States.
The North Korean fraud that targets cryptocurrency companies was alerted to by the US Department of the Treasury.
These independent IT contractors look for work involving virtual currency and make use of access to currency exchangers.
To raise funds or steal information for the Democratic People's Republic of Korea, they then hack into the systems (DPRK).
These individuals also carry out other professional IT tasks and employ their insider access to enable hostile cyberattacks by the DPRK.
How to avoid scams:
There are several recommendations
but in this article I will limit myself
to two recommendations that can be
catalogued as universal to detect scams:
1. They ask you for an initial or seed capital
( You can never withdraw that capital ).
2. They assure you 100% sure profits, which is false, because the market fluctuates and it is not possible to predict 100% a return in your favor. Usually they offer you succulent profits as a hook to make you fall for the scam.
The following are links that may be of interest to you.
Binance: is an online exchange where users can trade cryptocurrencies. It supports most commonly traded cryptocurrencies. Binance provides a crypto wallet for traders to store their electronic funds.
The exchange also has supporting services for users to earn interest or transact using cryptocurrencies. Click here