The peer-to-peer technology that powers Bitcoin and other cryptocurrency is seen as secure because every transaction is recorded on a blockchain, a decentralized public ledger. Therefore, anyone can view these files.
Ways To Avoid Crypto Scams
However, just like any other burgeoning industry offering lucrative rewards, the cryptocurrency sector has its fair share of scammers. In this article, we’ll discuss some of the most prevalent frauds and scams involving investments.
Know The Facts
First, never trust what you read online. A financial opportunity is typically unreal if it seems too wonderful to be true.
Not Everyone Deserves Your Trust
Be very wary of anyone who approaches you personally and requests money in bitcoin or presents you with an investment opportunity.
Meanwhile, regardless of who the sender claims to be, any email that appears to have come from a government official or a well-known public person should be treated with suspicion if it requests payment in bitcoin.
Protect Your Cryptocurrency Wallet
Cryptocurrencies like Bitcoin require the use of a digital wallet as well as the private keys required to access the wallet in order to be purchased, stored, and traded.
Use MFA
To increase the security of your bitcoin wallet, use two-factor authentication. This is impenetrable, as we saw with the Coinbase attack.
Pay special attention to the addresses of any websites you visit related to cryptos. Most phishers simply copy the URL of a trustworthy website and alter a few letters or digits.
Reject Fee Offers
Furthermore, deals using cryptocurrencies may require an upfront payment. None of them are worth considering, especially any deals that demand a bitcoin transaction fee.
Read more: Crypto: Binance halts withdrawals of stablecoin USDC following FTX scandal
Wormhole and Axie Infinity Loses Millions After Cyberattack
Meanwhile, when the cryptocurrency network Wormhole was hacked, approximately $320 million in cryptocurrency was stolen.
Even if the well-known bridge connecting Ethereum (ETH-USD) and Solana subsequently succeeded in recovering the stolen assets, the incident highlighted the openness of decentralized finance platforms to attack.
Hackers were able to take advantage of the popular online video game Axie Infinity NFT in March by exploiting its Ethereum-based sidechain.
Vietnamese studio Sky Mavis created the game. The web3 game, created by Vietnamese firm Sky Mavis, contained 173,600 Ethereum and $25.5 million in USDC that were stolen by the hackers.
However, the Lazarus and APT38 hacking groups, which carry out cyberattacks for the North Korean government, were identified by US authorities as being responsible for the attack in April.
Read more: Two of Crypto stars receive bad news; Will it affect your investment?
