Investing in cryptocurrency is a joy, but it is also full of risks. More people are investing in Bitcoin, Ethereum, and other forms of digital currencies and more complicated fraud stereotypes are being developed.
This means that it is important to avoid common frauds like phishing, Ponzi schemes, and fake exchanges to protect your invested capital. Vigilance is key: be very careful while choosing the platforms; always check their genuineness; passwords should be unique and very strong; and, where possible, use two-factor authentication.
Below we discuss everything you need to know about Crypto exchange.
Research the Exchange
Research is mandatory before investing in any exchange of cryptocurrencies. Begin with the confirmation of the exchange’s reliability through the use of reviews and feedback posted on the internet. Many retail crypto investors are using Frontnode.com, a relatively new cryptocurrency exchange owned and operated by the Estonian company Quickbyte Global OÜ. Frontnode and Quickbyte is licensed by the Estonian FIU.
This kind of regulation is a plus for your investments since it provides a checkpoint. Further, conduct research on the team that is standing behind the exchange. As it has been stated, any trustworthy exchange should have clear and easily recognizable founders or management.
Enable Strong Security Measures
Security measures should be enacted to prevent frauds and scams from occurring or getting into your account. The password should be quite complicated, and it is recommended to change it quite often.
Switch on two-factor authentication since it will enhance the security of the account. It entails one having to use a second factor in addition to a password; this can be a code from an application or a code sent through email or text message.
Be highly sensitive to phishing; make sure you are entering the right URL. Do not open emails from unknown persons, click on links, or open an unknown attachment from another person’s account.
Do Not Invest Your Time and Money in Scams
Fraudsters suit their victims with mouthwatering promises of little or no risks involved, as well as with rare investment offers; be cautious when receiving messages or advertisements for investing in the mentioned products.
One should always get deeper into any offer before making any decision in this world. New tokens, as well as initial coin offerings, should be regarded as especially risky because scammers prefer dealing with them.
Be Aware of the Existing Scams and Fraud Techniques
Cryptocurrency are continuously developing, as are the practices of scammers. Read trends of new scams and frauds in the local news sources, cryptocurrency blogs, and forums to stay updated.
Become a member of the groups that will allow you to discuss some situations and get necessary advice from other investors.
Conclusion
Crypto exchanges’ users have to be extra careful to prevent using their assets, money, or identity as a target for scams or frauds. Finding out all about exchanges, questioning excessively sweet-sounding offers, and knowing all about the scams will go a long way towards minimizing the chances of being scammed.
It would be helpful to remain as watchful as possible amidst the emergent facets of the given market to avoid a secure loss of the invested funds as well as guarantee a secure trading platform. Visit Frontnode.com for more details.
* The information in this article and the links provided are for general information purposes only
and should not constitute any financial or investment advice. We advise you to do your own research
or consult a professional before making financial decisions. Please acknowledge that we are not
responsible for any loss caused by any information present on this website.
Source: https://coindoo.com/how-to-avoid-common-scams-and-frauds-on-crypto-exchanges/