Only a decade has passed, but cryptocurrency has gained a lot of traction and popularity in the world of global finance. It has changed the way we understand the concept of money. Despite the huge popularity, there are still a great number of controversies, which dominate the industry. As it’s relatively a new concept in the investment world, it has become one of the main hubs for criminals
If you are involved in cryptocurrencies and want to invest in it, you need to be careful about crypto crimes. From time to time, the crypto space encounters different types of crimes. Here we will know about crypto crimes like money laundering, hacking, and other scams. Also, we will learn how to secure your wealth and information from criminals and fraudsters.
First of all, we will discuss different crimes and scams related to the crypto market. Also, I will share some useful tips on how to stay safe from those crimes.
Even though money laundering cases have reduced in recent years, you should be careful about it. In the early stages of cryptocurrencies, many people are not aware of the risks involved in crypto exchanges. They are the major platforms where criminals want to
A crypto exchange with weak security features and policies can be a major reason for money laundering. It’s unsafe to choose a crypto exchange without doing any background research and analyzing the security features, policies, and regulations of the platform.
How to stay safe from money laundering?
Choose a crypto exchange with proper anti-money-laundering features and legal compliance. The only way to keep away from such mishappenings is by carefully checking every aspect of the exchange.
Crypto Wallet Hacks
There are different types of crypto wallets available for storing your cryptocurrencies. However, most of the hot wallets are not as safe as they involve some security vulnerabilities. In most cases, hackers inject a virus into the owner’s computer or mobile to hack the wallet.
How to stay safe from such hacks?
Avoid using a hot wallet for large capitals. Use a cold wallet (USB wallet) to store your crypto wealth. If you are using a mobile or web wallet, choose a reputed and trusted wallet.
Crypto Exchange Hacks
Although it’s not easy to hack a crypto exchange, some cases have been found. As crypto-exchanges have large trade volumes, hackers want to hack them to get a large sum. Generally, they work as a team to hack an exchange.
How to stay safe from hacks?
As an investor, you don’t have control over the security features of exchange. The only thing that you can do to avoid such risks is by choosing a secure and legit exchange. Choose a crypto exchange that offers insurance to the users. Never leave your wealth in the exchange; withdraw to a secure wallet.
ICOs are the easiest ways that most crypto startups use to raise funds from the public. It allows entrepreneurs to collect funds from crypto investors in exchange for crypto tokens or securities. Due to lack of regulation, half of the ICOs are scams. In this type of scam, the owner of the company flees after collecting a large sum from the public.
How to avoid ICO scams?
Check the Whtie Paper of the project and website carefully. You should analyze whether the information is legitimate or not. If you find anything bad, avoid investing in the ICO. Also, analyze the team behind the project and check whether you can contact them. If you cannot find a legitimate team behind it, don’t invest in the ICO.
Phishing is a common way of internet scam in which the scammers create fake websites and credentials to deceive users. The cybercriminals steal crucial information from the users and get access to their real accounts.
How to avoid phishing scams?
You can avoid phishing scams by carefully checking the websites before entering your details. Check the URL and web address before using a crypto site.
Hopefully, the above information has helped you to become aware of the crypto scams and crimes and how to avoid them. If you want to invest in Bitcoin, check out the website join bitcoin loophole to know about Bitcoin investing and trading strategy. If you have any queries, please mention them in the comment section.