Cryptocurrency Security: Know The Red Flags
Cryptocurrency security is incredibly important. Are you interested in investing in currency such as Bitcoin or Ethereum? These and other options have a high appeal to those looking for opportunities to digitally invest. But there is plenty of Wild West-style lawlessness in the digital realm to accompany legitimate investment opportunities. How can a new investor tell the difference and avoid being scammed?
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Like any kind of other investing, a lack of information and/or experience is potentially costly. If you don’t know the rules, or if you don’t have any experience with how things are done with legitimate trading or investing you could be in for a series of expensive lessons.
For THIS author, learning the rules of trading felt difficult enough, but when I started learning how crypto scams work, it became obvious that a little knowledge could help me save a lot of money by avoiding certain kinds of hype and ignoring promises of incredible returns.
I have learned some good rules of thumb to follow that can help keep you from losing money, bitcoins, or other assets. If you are already following these principles, congratulations! Be sure to share what you know to help someone else avoid the same kind of trouble.
Beware Crypto Marketing Hype
Just as with traditional investing, there are some red flags to avoid from crypto exchanges and other platforms. How often have you seen marketing hype that claims one type of digital currency is “the newest and only coin offering that captures the magic of coin trading profits AND the excitement and guaranteed returns.”
It’s also crucial to avoid falling for the over-inflated promises of a return on your crypto investment. The key to good cryptocurrency security? Don’t believe people who promise you too much. Here’s the text from one cryptocurrency purveyor’s official site:
“We anticipate OVER 1% daily returns, with DOUBLE 2% returns on Tier 1 investors in pre-ICO stage secured purchases.” This same company predicts “a minimum growth rate of between 7% to 15% annualized, making HoweyCoins attractive for long-term investment. In addition, HoweyCoins can serve as a GUARANTEED hedge against inflation and market loss.”
This is a complete scam.
Why This Is A Crypto Scam
How can we be so sure? Because the website for this particular digital currency, known as HoweyCoins, is an example set up by the United States Securities And Exchange Commission as an example of what cryptocurrency scammer websites look like.
Other Red Flags To Avoid
Cryptocurrency security means being aware of how the conferred trust of the celebrity endorsement works. Don’t fall for crypto scams that feature celeb endorsements–as we have learned through headlines about famous names associated with dodgy products, celebrities don’t know any more or less about investing than YOU do. Otherwise, they would be investment tycoons, not actors, comedians, or musicians.
Also, I feel very strongly that you should avoid any company that asks you to make credit card purchases to fund investments. As the U.S. Securities and Exchange Commission official site reminds, “Investors should understand that most licensed and registered investment firms do not allow their customers to use credit cards to buy investments or to fund an investment account.” Do NOT use a credit card to fund cryptocurrency investments.
Remember, no one can guarantee any investment you make. Investments–even digital ones–have inherent risk and you may experience a loss of your investment in part or even the entire thing–that is why it pays to research and learn about cryptocurrency security and best practices.