As cryptocurrencies remain a major source of investment, it still remains major questions about how to secure investors’ funds. That’s why an expert explained to the Deseret News how to avoid cryptocurrency scams.
Some people in the US have suffered from cryptocurrency scams, which continue to hold many investors from diving into the crypto sector. As the Federal Trade Commission said, consumers have lost in scams $80 million combined in recent weeks. There has been a 10-times surge in crypto scams compared to the same period in 2020.
Crypto expert and co-founder of Crypto Head Adam Morris said to the Deseret News how you could really easily identify scams: if something sounds too good to be true, so it probably is.
“People should always be wary of platforms offering huge returns,” he said. “Never send your money or cryptocurrency to a platform you don’t completely trust. If you do some quick research you should be able to gauge online how reputable a company is.”
“Even if you see big names like Elon Musk supposedly endorsing the investment, do not take this at face value,” Morris added. “Scammers are so successful because they use recognizable and trusted names to dupe people into believing it’s a sound investment when really these names have no association to it at all.”
How can you remain safe from crypto scams? According to Morris’s advice, people have to figure out first: what their goals are, how much money they want to earn, and how they want to earn it. Do you want to make swift earnings or long-term investments?
Time is also important. “Make sure you determine if you have the time to keep up the market of alt-coins,” Morris said.
The expert pointed people should also be reassured that they are trading cryptocurrencies in safe ways.
“Make sure you are using an exchange you trust and that doesn’t have insane fees,” he warned.
As reported recently, U.S. congressman and Democratic representative for Illinois Bill Foster, speaking at a virtual event hosted by Axios, warned of growing anti-crypto sentiment among lawmakers over often scams and ransomware attacks.