If you invest in crypto there are red flags and signs to watch out for. This is why learning the difference between legitimate operations and scams is important!
Looking out for triggering keywords and tactics such as but not limited to demanding payouts, guarantee profits, mix of online dating and payouts, requesting crypto key, impersonation of a business or government agency and sadly blackmailing. If any above has happened to you then you may have been the victim of a cryptocurrency scam.
Here are a few tips on how to avoid cryptocurrency scams:
- Protect your private keys
- Don’t click foreign links
- Separate your crypto and bank accounts
- Research is your friend
- Look for grammatical errors
- Be suspicious
Pump and Dump
A well known phrase related to online scams, therefore, precautions must be taken such as
- Check the source and how trustworthy it is.
- Verify the alleged information whether it’s a hot tip on investments, demanding payouts or requesting any crypto key.
- Verify trading stocks meet the NASDAQ or NYSE requirements, if they don’t meet dont risk as they are likely to be an online scam.
Research Research Research
Some traders make the mistake of buying when stock appears cheap but does not guarantee a happy ending. Not knowing the difference between quality shares and those falling in value can be a dangerous game. Knowledge is a huge asset when it comes to trading online, so the more one studies the fortext trading market arguably the less trading risk there is.
Although tips may seem tempting, it can increase risk of an online scam and place your money on the line. Trust your own intuition and gain confidence through your research and set your own boundaries of risk.
Create a Trading plan
After you’ve conducted your research, a well structured plan can align with your goals, availability and any potential strategies such as Continuation, Reversal or Break-out to name a few, for example; Only risking 1% of capital per trade, these plans could be changed with time or to work around types of trading including:
- Day trading
- Swing trading
- Position trading
- Long-term investing
Don’t Risk It All
One of the most relevant and constant reminders to professional traders, one should only risk what they can afford. A stop loss is a good security blanket that can be placed to avoid losing a vast amount of your investments for example: A trader buys 10 shares for £100, the stocks value falls below £90 and then is sold at £89 for a small loss. This is an easy automatic step that shouldnt be ignored as you can’t continue trading if there is nothing left to invest.
Although you may be taking precautions, not everyone is immune or always fully protected from cryptocurrency scams. To report any suspicious activity or scams:
- Fill out a Federal Trade Commission fraud report.
- Book a free consultation with a wealthy recovery solicitor.
- Report a crime to your local law enforcement office.
- Tip the Commodity Futures Trading Commission.