The advent of cryptocurrencies has given the world a new form of digital currency in which transactions are made without a third party. Unfortunately, this has also created an opportunity for thieves and scammers to take advantage of unsuspecting investors. Here are three tips to help ensure that you don’t become a victim.
1: Do Your Research and Understand the Technology Behind Crypto
Most people are excited about the idea of putting their money into digital currency for various reasons. Some do it for the potential to make a killing and get rich quickly, some do it because they want to support a specific technology, and some do it because they have heard about all the benefits of cryptocurrencies but are not sure if they understand how it all works.
There are a lot of misconceptions among ordinary people that make them question the technology behind cryptocurrencies. For example, most people think that cryptocurrencies are used solely for illegal purposes such as money laundering or drug deals. This is not the case at all, though. Cryptocurrencies are revolutionary technologies that allow the transfer of value without any government regulation– they just aren’t used for illegal means yet.
The chances are that you are curious about cryptocurrencies, and you want to learn more, but you don’t understand how they work. So it is not enough to buy them and hope for the best; if you want to know what it’s all about, then do your research and understand the technology behind them.
2: Do Your Due Diligence and Make Sure You’re Getting a Good Deal
One of the most important things you will need to do before investing in any cryptocurrency is due diligence on the coin or service you are purchasing.
These days, there are dozens of cryptocurrency projects being launched daily. To get in at the ground level of an exciting new project, you’ll need to do some research. For example, suppose you are interested in putting your money into a new cryptocurrency project(or currency. In that case, I recommend that you spend at least one hour researching that specific crypto before investing any money into it.
Doing simple things like this will make it easy to spot scams and avoid them. You will also determine which cryptocurrencies are legit and which ones you should avoid.
3: Do Not Use a Virtual Private Network
Another mistake that people commonly make when investing in cryptocurrency is to use a VPN when conducting their transactions. This is a terrible idea for many reasons, and when investing in cryptocurrency, it’s essential to never use a VPN.
For starters, if a transaction is sent from your computer through a VPN, then it can be easily tracked back to your actual IP address and geo-location by the hacker. This can be done simply by gathering all of the data sent through the VPN in question and then cross-referencing it with known IP addresses. This will allow the hacker to find out where you are located and what computer to access the internet.
If you follow these simple tips, it will make it more difficult for these thieves and scammers to successfully scam you out of your hard-earned money by taking advantage of you.