Overtime, there has been many cases of crypto scams across the world, and here are ways to dictate a Crypto scammer so as to stay safe.
Blockchain transactions cannot be reversed because of its Immutability – No single or fewer number of participants can tamper with the records. Records can only reversed by the recipient of a transaction initiating a refund.
Other features of what the Blockchain is and how it works, include:-
- Consensus: majority of the decentralized participants must agree before a transaction is seen as valid.
- Provenance – all transactions are trackable and ownership of any asset is known to everyone participating. You cannot claim what is not yours.
- Finality – the record is viewable only in one place, and is timestamped conclusively. No need to stockpile several records or browse through several databases!
As a newbie in the cryptocurrency market, you need to be careful, do not entertain greediness, understand the differences between centralized and decentralized wallets.
Examples of decentralized (DEX) wallets are Trust Wallet, MetaMask Wallet, C98 Wallet… You have your keyphrase (the security of your assets is in your hands)
Examples of Centralized (CEX) wallets are Binance, Okex, Paxful, Luno, etc… No keyphrase (they are responsible for your asset. They can get hacked easily in most cases or freeze your account for certain violations)
In DEX, if you forgot your keyphrase (seed phrase/ passphrase/ private key – as many would call it), your assets are gone forever. Even the devs can’t assist you in the process of recovering because those phrase are on cloud storage, and during registration process, there wasn’t any form of KYC done.
In CEX, when you forgot your password, there is a forgot password option because the company/ platform are responsible for your assetsʼ security. In DEX, you can receive or transfer any amount of crypto without restriction or any third-party being aware of the owner. But in CEX, there are limitations to the amount you can receive or withdraw daily and they know who is who because you must have done identity verification (KYC).
Now, let’s unravel how to dictate a Crypto scammer
They might tell you that CEX wallets does not place your crypto on automatic profits. This is why we earlier warned against greediness.
They always post request for your personal Trading address: There’s nothing like personal trading address in a wallet, if someone tells you to get your personal trade address it’s a scam.
They uses fake Facebook account to testify they benefited from their investment platform (then adds fake deposit or withdrawal screenshots), and then proceed to convince you to inbox them.
They post something like “INVEST 300 TO GET 2000: there’s one thing you should know about Crypto Trading, it doesn’t have a fixed profit as the scammers may claim.
They claim to help you recover your scammed money back: if you’ve been scammed before I’ll advice you to start away from such people who post they can help you get back your scammed money back because they are also Trying to scam you again.
They claim to be your ACCOUNT MANAGER: Never give your wallet details to anyone or send money to any account manager to help you trade, you will end up getting scammed.
Crypto Journey is a gradual process. You must start somewhere, but never be greedy in your pursuit. And of a truth, you gonna make mistakes or should I say, fail on certain things but that shouldn’t be your fear. Your fear should be not trying something new, but do not borrow funds from anyone to invest in crypto, and never never boast of your portfolios either.
Trading of crypto should not be taken as gambling or lucky game, and the factors that can guarantee anyone’s success in crypto is not TA and FA alone, but inbuilt analysis and your ability to research deeply before making any trade.
A lot of truths are still untold in the crypto space. You need finance (to serve as your capital) before you can make it big. You need to have a business outside there that helps you put in money at the start of your crypto journey.
Fear and greed rules the crypto market. Pay a deep attention to market movements in the crypto industry and be ready to buy low (red) and sell high (green). This is to your advantage. When people are too confident, this is the time to be fearful! Take profits! When people are fearful, this is the time to be confident! Keep buying.
You need to be educated on how crypto truly works. Most people going into crypto jumps in blindly and thereby gets their first baptism when the market retraces. Some end up running away forever. Some learn from their mistakes and then learn how the market works.
You need to know the basics, because without getting the basic education, the probability of you making good returns will be minimal. You might make huge profit this week, and lose everything next week. So, educate yourself on the process, learn to master your emotion by mastering taming your FEAR & GREED!!!
Protect your wallets, especially DEX. Few secrets on how your decentralized wallets can be hacked:-
- Sharing your 12 keyphrase (via phishing, social engineering, etc.), or saving it ln unprotected place online or taken the screenshots to keep ln your phone.
- Your device is corrupted with malware, or someone had physical access to your device.
- You entered your recovery phrase on a fake/ clone app, or you may have transacted with a malicious DApp. Do not connect your wallet if you are not sure if you are on the right website.
New to Crypto? Needed legit verified vendor to sale your crypto in exchange for fiat – money transfered to your bank account? Want to fund your crypto wallet, click here. Kind regards.