Cryptocurrency has always claimed to be one of the safest platforms for trading. This is because of its Blockchain technology, which binds each block with the top security.
However, recently there was news of the potential theft of more than $300 million worth of Ethereum tokens from the Blockchain bridge. A Blockchain bridge is a junction where Cryptocurrencies can be exchanged.
This is clear proof that not all Cryptocurrencies are safe, and the cyber crimes against them are getting more advanced.
If you are just beginning with your Cryptocurrency world, we are not trying to scare you. It will still remain one of the safest places to trade.
This is just a cautionary tale to help you be a little more careful with your trading. Don’t believe everything you hear about the market. It is better if you get authentic analysis from the computer from Immediate Edge.
Direct Thefts Vs Scams
Cybercriminals are finding new ways in which they steal Cryptocurrency from their victims. However, there are two main ways in which most of the stealing occurs.
Direct Thefts: This will always remain the highest form of Cryptocurrency theft. This is when the victim, who is completely unknown to the thief as a cybercriminal, gets hacked. The criminal might penetrate into your system or their Crypto wallet and steal all the money.
Scams: This is more of the work of a fraudster. Yes, this is when you will be scammed by wrong emails or unauthentic conversations which will either convince you to pay them all your Cryptocurrencies or open a trading account from where they can simply steal.
These are the two kinds which you should be aware of, and now we will be elaborating on the rest.
What Are The Different Kinds Of Scams
Here are the different kinds of scams from which you must protect yourself from.
1. Investment Scams
There are Crypto investment platforms from which you can start trading. Some cybercriminals take advantage of this, and they create a legitimate-looking investment platform that mirrors the real ones to the ‘T.’
Next, they will start flashy advertising on this platform in social media, email marketing, and even through fake celebrity endorsements. Many new traders think of it as an opportunity that they absolutely cannot miss, and they enter into these scam investments.
2. Email Phishing
Email phishing is the oldest form of scam. This is when the fraudster will ask for your Crypto wallet details through scam emails in exchange for mouth-watering prizes, which are definitely too good to be true.
Sometimes, they can even send a phishing link to your email, and on clicking the link, they get access to your internal device.
3. Trusting Scams
This is the newest form of scam where Cybercriminals take advantage of the fact that someone is in a vulnerable state of mind. They will begin by building meaningful relationships with them over dating applications or social media.
Then, when they have gained your trust, they will give excuses for a crisis and ask you to open Crypto trading platforms and buy currencies, only to steal the entire lot from you.
Ways To Protect Yourself
Here are some of the ways in which you should be able to protect yourself from these scams.
1. Trustworthy Transactions
No matter what happens and how appealing an investment forum looks, you should never invest in Cryptocurrencies other than from some trustworthy forum. Take the best reviews into consideration, and speak to other traders before deciding upon a platform.
2. Password Protection
If you are someone using an online wallet, then strong password protection is everything. Even a two-step authentication is not enough. You will need a multi-step authentication where the domain doesn’t even enter you without answering all the questions.
3. Cold Wallets
Cold wallets are the best way to store your Cryptocurrencies. It is much safer than saving it online. This is where you get a hard drive and store your Cryptocurrencies which you are not trading at the moment in that drive.
Be Careful Out There!
If you are trading Cryptocurrencies, you cannot be naive.
You need to have a worldly idea about the trade and everything that can go wrong with the trade and make you lose everything. Cyber thefts of these digital currencies are one of them.
So, be careful out there!
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