There is no denying that crypto investments have really taken off in the past few years. In fact, 43 percent of Americans aged between 18 and 29-years-old have used or traded a cryptocurrency. Plus, the average crypto daily trading volume stands at $120 billion.
However, with great popularity can often come great risks. There is no denying that hackers are increasingly targeting crypto investors, and this is something that you definitely need to be mindful of.
No matter whether you are looking to buy UDST, Ether, or any other type of crypto, you need to make sure that you protect yourself at all times. With that being said, in this blog post, we are going to take a look at three of the most effective ways of avoiding crypto scams in 2022.
Understanding the different sorts of threats crypto investors face
Before we take a look at some of the different methods that you can use to protect yourself from a crypto scam in 2022, we need to first understand what sort of threats your business could be facing. It is a good idea to read SEON’s guide to account takeover fraud to find out more.
This will give you a comprehensive understanding of what account takeover fraud is, and the different ways in which these attacks are launched today.
Threat actors will tend to use tactics like extortions, ransomware, phishing, and crypto-jacking in order to steal cryptocurrency or take over your entire account.
To make matters worse, the threat landscape is changing all of the time, with threat actors always looking for new ways to target crypto investors.
So, how can you avoid crypto scams in 2022?
The last thing anyone wants to do is jeopardize all their hard work by falling victim to a crypto scam. So, what can you do to stop this from impacting you? Well, let’s take a look at three of the most important things to do in order to avoid a crypto scam in 2022.
1. Make sure you do plenty of research
There is only one place to begin when it comes to avoiding crypto scams in 2022, and this is by doing sufficient research. There is no such thing as too much research when it comes to investing and putting your money on the line.
It can be difficult to ignore advice from influencers and self-proclaimed billionaires online. However, you need to make sure you do your research before you invest your hard-earned funds.
It is important to remember that people can say anything online today. You could set up a website right now, claim to be a millionaire, and offer bogus advice to people. It really is that simple.
This is why it is imperative that you never take information online at face value. If an investment seems like it is simply too good to be true, the chances are that it probably is, and so you always need to be wary.
It is also important to make sure that you do not trust everyone. If someone contacts you directly to ask for a payment in cryptocurrency or they offer you an investment opportunity, you should always treat this with a huge amount of caution.
Make sure that you have the same approach when it comes to emails that you receive online. Do not simply trust an email because it looks official. Even if it appears to be from a public figure or a government official, you need to investigate to make sure the email is legit first and foremost.
You then need to conduct due diligence to make sure that the contents of the email are legitimate as well. It does not matter who the email claims to be from, you should never simply take someone’s word when investing your own money.
So, make sure you take the time to carefully assess every opportunity that comes your way. Never stop learning, as this will give you the power to make the right decisions going forward.
2. Secure your crypto wallet
Not only do you need to do your research whenever an opportunity comes your way, but you also need to make a dedicated effort to protect your crypto wallet as well. After all, the last thing you want is for this to be hacked.
So, how can you make sure that your crypto wallet is protected? Well, it requires a multi-layered approach. Unfortunately, there is not a single solution that can guarantee protection. If only it was that easy!
Because you are going to be facing a number of different security threats, you need to make the most of a number of different protection strategies and techniques.
For example, using a cold wallet is a good place to start. Unlike a hot wallet, a cold wallet will not connect to the Internet. Because of this, a cold wallet is not going to be prone to a cyberattack.
Aside from this, it is important to make sure that you only access your wallet when you are using Secure Internet.
To reduce risk, maintaining a number of different wallets makes a lot of sense. By doing this, you can make sure that you do not put all of your crypto at risk if one of your wallets is compromised. You know what they say; you should not put all of your eggs in one basket.
In addition to this, most people highly recommend that you change your password on a regular basis. They say should do this at least once every three months. Moreover, make sure your password is unique to that crypto wallet and that you do not use it for any other account.
If you use the same password for everything from your Facebook account to your crypto wallet, it means that the hacker only needs to access one of your accounts and then they will pretty much have access to them all.
3. Be wary of crypto bots
The third piece of advice that we have for you is to be mindful of crypto bots. Crypto bots can skew the market and they can make it impossible for you to achieve your goals.
Unfortunately, we are seeing bots run rife in so many different industries today, but this is not something you should simply accept. There are lots of different approaches that you can use to keep bots at bay.
One of the biggest issues is that a lot of businesses and individuals are using outdated methods to prevent bots. A prime example of this is CAPTCHA. We are sure that you have experienced this before. Have you ever tried to purchase something online but you find that you need to click on all of the squares with traffic lights or boats first?
It can be very frustrating and it can slow down your experience. Plus, the bots that are being used by hackers today are much more sophisticated than they once were, which means they can bypass challenges like this.
In the end, it is the human user that ends up being more negatively affected. This is because bots can ruin the user experience. At the same time, they slow it down for the human user as well, which means they could miss out on big crypto opportunities.
This is why you need to take a different approach when it comes to protecting yourself from bots. Rather than making the human do the work, you need to make the bots do the work.
This means implementing difficult cryptographic challenges that the bots will need to complete. This will be invisible to the human user. However, it will make an attack too costly and too troublesome for any threat actor.
An approach like this will mean that the hacker’s resources will be drained and it will be too costly for them to carry out an attack on you. Not only will this prevent bot attacks now but also in the future, which is why an approach like this comes so highly recommended.
Final words on the best ways of avoiding crypto scams in 2022
So there you have it: some helpful things that you need to know when it comes to avoiding crypto scams and making sure that your cryptos are protected and you don’t fall victim to trading scams in 2022.
There is no denying that crypto scams are a real concern for businesses and individuals these days. This is a trend that shows no sign of slowing down either, as hackers become more and more sophisticated in their approach. This is why you need to do your own due diligence and give yourself the best chance of making sure you do not fall victim.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.