Business • Crypto
6 Tips and Tricks For Spotting fake Cryptocurrencies and Bitcoin Scams
With the increasing popularity of cryptocurrency like bitcoin, many people are now planning to invest in it. The main reason behind its increased popularity is its stability, ease of use, security, and the consistent uprise of its value. However, it is a sad truth that with the increase in interest in cryptocurrencies, the number of scams has also been increasing day by day. As almost every individual today has excess access to the internet, it has become a significant business platform. As a result, many of you would have often noticed several advertisements talking about giving you the opportunity to invest in bitcoin or any other cryptocurrency. Despite the fact that cryptocurrency is exceptionally secure, the internet is full of fake cryptocurrencies and bitcoin scams that have caused many people to lose a large amount of money.
No matter how careful you are, spotting these scams require a keen eye and prior information. If you are interested in investing in cryptocurrencies but are reluctant to do so because of the increasing number of scams, visit iol.co.za to get all information regarding fake cryptocurrencies.
Furthermore, if you are looking for a quick review on how to spot fake cryptocurrencies and bitcoin scams, here are a few tips and tricks you should keep in mind:
1. Get knowledge from a third party
First things first. You will come across many advertisements regarding investments in cryptocurrencies, high ROI rates, etc. If you have some extra cash lying around, you might even be interested in investing. But before you make a move, the first thing you should do is verification. There are several ways through which you can verify the website or the opportunity. Probably the easiest way is to talk about it with those who have knowledge of the market. You can post your concerns in a form and get an expert opinion. Also, you can verify the website, its source, and related information from the internet as well.
2. Check WHOIS
Even if you find everything in its place and have minimum doubts left regarding a website, you should still look it up on the WHOIS. This is a fantastic website that will give you detailed and vital information regarding the website in question. You can check the date at which it is created, registrant country, and so much more. And if you are not into such terminologies, you can always get help from a tech-savvy person. WHOIS lookup tells you all about the website, and thus you will get a clear idea if it is genuine or a fraud. You just have to keep your eyes open to see if you find something fishy or not.
3. Take a look at the URL
You can tell a lot about a website by looking at its URL. It is no secret that HTTP or HTTPS offers a high level of security to the users. Furthermore, these are, most of the time, also a guarantee of a website’s authenticity. Therefore, if you encounter a website that has a short social media URL or is not secured by HTTPS, it clearly means something is not right.
Mind it that the scammers use the word Bitcoin or cryptocurrency as bait to lure the users into their trap. As soon as you click on the link, they will send vicious malware to your computer that can mess things up for you.
4. Money exchange offers
You might have come across offers that would ensure instant bitcoin exchange from your money or promise guaranteed high returns overnight by just paying a startup price. The thing is, it is practically impossible. Even though Bitcoins and other cryptocurrencies do increase in value, but there is never a guarantee, let alone a fixed rate. So, if someone offers you unrealistic offers that make you excited and tell you that you will get rich, note that it is going to be fake or a fraud.
5. Look for the whitepaper
The whitepaper is an important term in the world of cryptocurrency. When you have done your initial research and find that everything seems right about the currency provider, or the website, never forget to ask about the whitepaper. If you don’t know what a whitepaper is, let me tell you it is a document that has all the vital information regarding a company or a project. The details include its back group, its vision, objectives, strategies, and goals. In short, this paper can tell you a lot about how serious the service providers are in terms of making their business successful. So, once you are ready to invest in a cryptocurrency, ask about the whitepaper. And if, for some reason, they fail to provide you the document, never under any circumstances, believe them or invest with them. Your money won’t be safe.
6. Never fall for those who do heavy marketing and have a high social media presence
Lastly, marketing is a powerful weapon in the hands of fraud. Most fraudsters invest in heavy marketing campaigns to attract investors. They try to create hype not only in newspaper, magazines but also on social media. Because marketing is all about attracting people to buy what the seller has to offer, fraudsters have a high social media presence. Also, remember that the legit cryptocurrency offerings don’t need to spend on advertising themselves. Instead, they expand naturally and more successfully.
Where the internet has shrunk the world to a small place, it has also increased frauds. Especially when it comes to making investments by coin offerings, many people have lost a considerable amount to these fraudsters. However, with the right knowledge, a keen eye, and the tips mentioned above and tricks, you can set apart genuine coin offerings from fake and save your investment from falling into the hands of the wrong people.