In the amazing and potentially profitable world of cryptocurrencies, there are multiple scams and frauds taking place across the world. You should know that to become a profitable and successful cryptocurrency trader or investor, you have to stay sharp at all times. By that, I mean you have to know when and how to detect frauds, scams, cyberattacks, and more importantly, illegitimate cryptocurrency offers. As the market for cryptos is booming, you will learn about cryptocurrency thefts and scandals that are worth millions of dollars.
For an individual cryptocurrency enthusiast, it all begins with the wrong cryptocurrency exchange. Choosing an illegitimate trading platform or cryptocurrency exchange means you risk your savings and coins against hackers and thieves.
How Can You Identify a Fake Cryptocurrency Exchange?
First and foremost, you should spend plenty of time to learn about the different ways scam websites and online cryptocurrency exchanges lure investors in and steal their money. If you’re interested in exchanging cryptocurrencies of your choice, you should go with only the reputable and most highly-recognized cryptocurrency exchanges on the internet. By choosing an exchange that neither has reviews nor any reputation online means putting your money at extreme risk.
You can try going through cryptocurrency communities and social media platforms to learn about the verified and public-favorite cryptocurrency exchanges. This way, you will be safe in giving your information to a reputable exchange company.
Red Flags to Watch Out for
- If it’s only been a week of signing up with a cryptocurrency exchange company and you start receiving offers that guarantee unrealistic profits, it’s a clear sign that the company is fake and wishes to steal cryptocurrencies through transfers and deposits.
- The exchange might start prompting you to make hasty deposits and transfers to start investing in cryptocurrencies. The emails and notifications might contain fake or old price updates of cryptocurrencies as well.
- Excessive messaging such as phone calls, texts, and emails that end up in spam are telltale signs of illegitimacy.
- If the exchange keeps reminding you to recharge your wallets even when you have done so recently, it’s another clear sign that the company is bent on misusing your money.
- Get rid of your account with the cryptocurrency exchange that suddenly imposes undiscussed or previous undisclosed fees right when you signup, withdraw, or exchange cryptocurrencies.
What Fake Cryptocurrency Exchanges Look Like
The goal of unregulated and fraudulent online cryptocurrency exchanges is to pose as legitimate and lawful cryptocurrency exchange services providers. The main tools of illicit cryptocurrency exchanges include phone calls that are unsolicited along with celebrity endorsements. Moreover, illegitimate cryptocurrency exchanges try to guarantee massive investment returns. Once you come in contact with an unlawful and scamming cryptocurrency exchange, you will start receiving emails and notifications that you didn’t sign up for. Most emails and unsolicited phone calls will try to convince you to make hasty deposits and transfers.
That’s how you may recognize fake cryptocurrency exchanges posing as legitimate companies and businesses online. Companies like that want you to get into the signup process so they can secure you as their target. Once you sign up by providing personal and banking information, the company will require you to pay high fees and service charges initially. During fees demands, the companies will keep you interested by offering heavy profit returns. In turn, once you exchange and try to withdraw, the company will hold your funds and hinder the withdrawal process.
Although there’s massive scope in the cryptocurrency world, you should be careful when investing your hard-earned money into cryptocurrencies. There are scammers and hackers all over the internet who are always looking to make the most out of their illegitimate cryptocurrency activities. Being cautious can grant you safety in terms of information and funds loss. If you’re actually looking for a cryptocurrency exchange, make sure that you review various options and check for their security before signing up with one.