What 'Red Flags' you must consider staying safe from potential crypto scams?

Most forbidden is most desirable; people notice numerous signals of a false project and still fall for it as it seems lucrative, which should be avoided.

Undoubtedly cryptocurrencies and digital assets seem more attractive investments than any other, looking at their returns and many other numerous appeals. For instance, investors find it way more convenient that crypto is unregulated. However, the same trait acts as a vulnerability for the space as it poses a threat of potential fraud and cybercrime.

It is not just a possibility; rather, it happened numerous times; people often consider the current period in this space with life as in the Wild West of America, where there was war, lawlessness and insecurity all around until the restoration of authority. Getting reports or hearing news related to crypto scams or fraud and such criminal activities is quite unusual, resulting in losses of hundreds of millions of dollars.

In particular, the trend is important for consumers and investors to know what measures they could take to protect themselves from the potential threat of scams and frauds.

The Federal Trade Commission (FTC), an independent authority in the US, has issued a list containing several ‘red flags’ that would need to be considered an indication that there is a need to stay away from such companies or people. Let’s see those points that the agency said to consider.

First, an investor or general person should see if there’s a guarantee given that the scheme would make you money. Such projects seem too good to be true if a celebrity backs endorsements or testimonials. But in reality, there is no guarantee, and provided endorsements are often fake. If a particular celebrity asked about the project or product, he found knowing nothing and having no connection with it.

Further, guaranteeing the return of any big payout should also be avoided. For instance, compare it with the example of reputable online casinos and what promotions they offer. Such casino bonuses in South Africa align with several strict terms and conditions, and they have limited eligibility periods.

Usually, the promises of free money are fake, and it’s almost a contradiction in terms and conditions. There is a need to treat them with utmost skepticism wherever such big claims are made specifically without details or explanations.

Experts recommend some basic steps to keep yourself safe from such scams. They start with the most obvious and basic one, which is not to put your money in any virtual asset, project or cryptocurrency until or unless you understand it completely. They already are considered more volatile than any asset or conventional currencies. So whenever a trader or investor starts in order to earn profits, the advice remains for him to keep room for losses.

Another recommendation is always to consult a trusted adviser, a person who knows about the market or an expert in this field. A piece of advice could be precious when taken from the right person and can be a huge loss from any random person on the internet.

Similar to such instances, social media posts displaying cryptocurrency offering giveaways should not be considered or believed. On top of that, no one should ever share their passwords, private keys, or confidential credentials related to your finances that would allow them to access your virtual currency.

Those keys provide a safety feature to your digital assets keeping them in a secure and offline place, where they remain safe from being hacked.

Ultimately, forearmed is forewarned; if you understand the risks and common ways to counter them, understand the way scammers operate or fraud schemes regulate, it would become way easier for you to spot such instances before they happen and keep your money and yourself safe.