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The booming cryptocurrency market is going mainstream with a number of retail investors jumping on the profit bandwagon of Bitcoin and other cryptos. With experts predicting ridiculous valuations in the near future, many people are investing their hard-earned money into crypto trading and investments.
However, the lucrative opportunity has also attracted the attention of anti-social elements and cybercriminals. These elements are out to dupe unsuspecting consumers of their investments. They use various techniques like creating fake trading platforms, offering unsolicited broker advice and resorting to hacking to steal private keys.
In this article, we are going to specifically deal with one area where a majority of traders have experienced problems and raised concerns- crypto trading platforms. We speak to some leading names in the cryptocurrency ecosystem and ask them about what consumers need to look at in order to spot problematic platforms.
What are some Common Threats you need to pay attention to?
According to experts, first-time investors need to be careful about the trading platforms or exchanges they start working on. This means that it is essential to do your homework in terms of research and identification before joining a trading platform.
Experts point out that trading platforms, which allow for a hundred percent cash-out facilities 24×7 are to be trusted than the ones who require you to maintain a minimum deposit. It is also essential that you always create and link a separate bank account for all your trading needs.
We need to understand that hackers are always after private keys. This is why security experts suggest that people who deal with and store Bitcoins and other crypto need to install the best security solutions on their devices.
In addition, if it is possible, it is recommended that your private keys are most safe when placed in offline channels and mediums. We are talking about hard disks, pen drives and memory cards, which are not connected to the internet.
5 Ways to Spot Fake Cryptocurrency Trading Platforms-
Increased Interference from Brokers-
Once you start dealing with crypto, you are going to receive a number of emails and calls from supposed brokers or financial advisors offering you constructive investment solutions. If your trading platform is doing the same, it is best to abandon it as soon as possible. Brokers are the first sign of a fraudulent platform and can cause you massive losses within a short period.
High Registration Costs-
Credible trading platforms like trustpedia.io are never going to ask you to deposit a high registration fee at any cost. Just to weed out non-serious people and troublemakers, you might be asked to register for a nominal sum like a couple of hundred dollars. If a trading platform is charging you five hundred dollars, it is best to stay away and report it as spam.
Fast Transactions Promise-
Many spurious crypto trading platforms offer lightning-fast deals on their platforms. You will come across communications like earn $10K in the first -month and so on. Please understand that these platforms play with investor greed to make quick bucks on your hard-earned money. Bitcoin is profitable, but not according to what these platforms are promising.
Too Many Messages and Chats-
Platforms, which are only after money are going to send you spams throughout the day. In other words, they will keep asking you to recharge your wallet with a stipulated amount. This is a giveaway to show you that the platform is only interested in duping you with your money. The first instances are the warning signs and you should immediately cash out all your earnings.
No Digital or Social Media Presence-
Credible platforms invest in their websites, blog sections and social media pages. They regularly update their audiences and educate them about the finer details of cryptocurrencies. If your platform does not have its own blog section or social media page, chances are that it’s fake and you should not invest even a few hundred dollars on the platform.
The Final Word
As I have already mentioned, these fraudulent elements prey on investor’s greed for quick profits. Can you add to the list by stating some more problematic elements in the comments section below?