How to Protect Your Crypto Wallet from Scammers
Scammers just love to take advantage of innocent people. And since crypto adoption is through the roof, it wasn’t hard to suggest that crypto scams will also start ramping up quickly.
But if you want to ride the cryptocurrency market and trade like a pro or earn passive income via staking, knowing how to protect yourself from scams is just as important. After all, if you make $200K a year and a hacker attack evaporates both your profit and investment capital, what’s the point?
Why Do Scammers Target Crypto Investors?
Scammers often find fertile ground among crypto investors. The allure of substantial, quick profits makes many lower their guard, which turns them into prime targets for fraudulent schemes.
Crypto’s relatively anonymous nature is a dream come true for those with malicious intent, as the “hit-and-run” model is just perfect.
Scammers typically create false promises to encourage an investor to buy Bitcoin and other cryptocurrencies and connect their crypto wallet. Once the investor commits, the scammer vanishes with the funds, leaving the victim empty-handed.
The cat-and-mouse game throws a dark shadow and tarnishes the whole industry. But more importantly – it highlights the significance of caution and informed decision-making.
Most Popular Crypto Scams To Be Aware Of
While many cryptocurrency wallets are still exposed to multiple dangers, there’s light in the tunnel! There are many articles warning investors all the time, so if you like to read, then you might be more protected than impulse investors.
Let’s see the most popular scams within the industry
The 100X ICO which will change your life
100X ICOs are everywhere around us, tantalizing investors with the promise of life-altering returns. The method seems simple: you buy USDT or Ethereum from a reputable crypto exchange, swap them for ICO coins, and then patiently await your golden hour.
However, reality often paints a different picture. More often than not, such windfalls remain elusive. The harsh truth is that the chances of either finding your funds inaccessible or seeing your investments plummet are near 100%.
Clone dApps
Clone dApps are line clone apps. The interface is strikingly similar to other applications (like crypto games or staking platforms). However, when you enter your crypto wallet address, you’ll quickly see your funds evaporate.
Crypto rewards
Crypto phishing scams aren’t unheard of. They’re quite common, and they often target your mailbox, especially if you are an active investor who has their email address entered in many places.
If someone offers you big crypto rewards, beware. No one is giving you free money. Don’t learn it the hard way.
How To Protect Your Crypto Wallet Efficiently From Scams?
As per Newton’s third law, “for every action in nature, there is an equal and opposite reaction.” There are multiple ways to protect your digital assets, and we’ll show you the most popular ones:
Use cold wallets
Cold storage is the best option if your assets are worth at least 6 digits. A cold wallet stores funds offline. It’s secure and unreachable by online hackers. If someone wants to access funds, physical access to the wallet is crucial. This makes asset theft hard. Cold wallets are the choice for savvy crypto holders keen on maximum security for their investments.
Don’t skip the Two-factor authentication
Two-Factor Authentication (2FA) shields customers by adding an extra security layer. Users must provide two forms of identification before gaining access. Typically, it involves a password and a code sent to the user’s phone. And it’s the extra step that shields assets even if malicious actors obtain user passwords. While it’s often undervalued, 2FA has protected not one or two wallets.
Trust only reputable exchanges
There’s a reason why Binance, Coinbase, Paybis, and OKX are popular. All of them have years of proven history. Moreover, they do offer multi-layer protection, like underground storage premises, bulletproof security protocols, and even more.