How Can You Tell a Fake Crypto ExchangeMay 26, 2021
Cryptocurrencies brought up huge fame these past years. You have heard stories of people getting rich with low investments and you want to be just like them. You may think there is luck involved but these people have researched for a long time. With so many different coins, it is not easy to make the right investment.
Since the prices dropped hard these last few weeks, it may be time to invest now since you are buying low and you will try to sell high. If you decided to invest in cryptocurrency first make sure you have made your own research on the coin or token that you are trying to buy. Is it worth investing in it? Are there better options?
These are the questions you need to ask yourself? After doing the research you have to find a safe and reliable cryptocurrency exchange site. With many different fake crypto exchange sites, you might get scammed easily. That’s why we made this article, to show you how can you tell a certain site is a fake exchange scam. But first, let us explain what crypto actually is.
What is crypto?
Crypto or cryptocurrency is an internet currency that helps you get a service or buy a product. The crypto uses blockchain technology that is used to save the transactions. They are made from companies so you can trade them for a service but you can also hold them or day trade them to make a profit.
There are many cryptocurrencies made from different companies to serve different purposes. People like to buy them because they like to be rebellious and they think that by using this type of internet currency they are bypassing the banks.
They also buy crypto for investing purposes, since crypto coins are on the rise and most definitely are the future, it’s better to buy them while they are still cheap. Others just like to hop on the train of money-making and become rich over time.
We saw what are cryptos and some reasons why people like investing in them. Now it’s time to see how can we protect ourselves from getting scammed by fake crypto exchanges.
How to avoid being scammed
When finding a site to buy crypto always look for a legitimate one. You can find exchange sites pretty easily, just look up the most used ones. They may have pricier fees but they are 100% safe. Also, ask your friends what exchange site they use.
Other than that, you can Google the page’s name and it will find info about that like users that left comments on how their experience was and if it is legitimate or not.
Additionally, you could use comparison websites to tell you which exchanges you should visit and which ones you should avoid as seen on bitcompare.net.
When you click the link to that website, look for the lock icon next to the URL, which means that is secured. Search for any typos as well because fake exchange places tend to make web pages with a name almost identical to the original with one or two different letters. Also, if you notice a difference in the page design, make sure you are on the website that you intended.
Seeing an advertisement on a page that says they sell cryptocurrencies for a price less than it’s worth, it’s probably a scam so don’t get involved because you know how they say, the poor pays double. Also, when they offer a high reward when staking, mainly in the first weeks keep in mind that it might be a scam.
Choosing a coin can be a shady thing to do as well. Why you may ask? Because the bitcoin or the other top coins have high price so you might want to buy something with a lot of decimals and think it will skyrocket and you will become rich overnight.
That rarely happens. When choosing a coin always make sure they have their whitepaper published. On the whitepaper, you can see everything the team has planned referring to the coin. Thins such as: how they made it, what are the other plans on how the coin is going to grow, deadlines if they have, etc.
Also, make sure their whole team is published so you know who is behind that cryptocurrency. It is not about the names only, check what they have done in the past, previous projects, their profiles, and how old are their accounts. Check everything before buying it or in short, until it is not too late.
If you have any knowledge of programming, you should see the code if they have made it public. Every legitimate coin has its code open for people to see it and review it. If you don’t know, just ask an expert.
Other than the web pages and the coins, you might get scammed if you are told to pay for something with crypto if you can pay normally. The crypto transactions are not reversible so you will end losing your money without getting what you have paid for.
E-mail blackmailers use this type of payment because it has no location and you can’t find them. Try not to fall under the influence and pay them, just ignore them and you are good. If you are buying or selling your coins in your area, make sure to do that face to face. Chances of getting scammed otherwise are pretty big since you will give them your crypto or your money and you will not receive anything.
Getting into investment is a pretty big thing for everyone. While you hear everywhere about cryptos, you might get peer pressured to buy some. Before using your money, think twice about what you are about to invest in. Do not rush into and buy some cheap coin because you read something on social media, make some research first.
Keep yourself away from shady sites and unreliable brokers. My suggestion is to invest in any of the top 10 coins since there is the lowest chance of risk and is a good long-term investment. Make sure you buy from a reliable source and good luck!