How to Protect Yourself from Cryptocurrency Scams!

In case you haven’t heard, Cryptocurrency is a new way to interact with money and investments. What is cryptocurrency? You may be familiar with the most popular versions, Bitcoin and Ethereum, but there are more than 19,000 different cryptocurrencies in circulation. Cryptocurrency is decentralized digital money that’s based on blockchain technology. The blockchain ledger is a computer program. In practice, it’s a little like a checkbook that’s distributed across countless computers around the world. Transactions are recorded in “blocks” that are then linked together on a “chain” of previous cryptocurrency transactions. While cryptocurrency is a novel and exciting asset class, purchasing it can be risky as you must take on a fair amount of research to understand how each system works fully.

Since many people are starting to jump in with often little knowledge of how Cryptocurrency works, scammers are doubling down on their attacks, hoping to trick new crypto users.

So, what are Cryptocurrency scams?

Well, they aren’t too different from other get rich quick scams. With promises of wealth beyond your dreams and with little to no effort, they make cryptocurrency seem like a fast past to fortune. Using familiar tactics through social media, email, and even fake websites, scammers are around every corner looking to take advantage of unsuspecting users.

Although there are many different forms of cryptocurrency scams around the world, the tactics to protect yourself remain the same.

Too Good to Be True – The age old saying of “If it’s too good to be true, it probably isn’t,” remains the best piece of logic you can use when it comes to finances. Unfortunately, outside of inheriting money, or winning the lotto, getting rich quick is very unlikely.

Warning Signs – Typically the easiest way to spot red flags are in the wording used. When reading through the message, look for typos, grammar errors, unnecessary spaces, pretty much anything that looks off, probably is from a legitimate company that would proofread their work prior to sending out.

Don’t Rush – Many times scammers will succeed by getting the person to make a rash, quick decision without thinking everything through. Whether this is in the form of a “act quick before it’s too late,” or even threats of government persecution, scammers always try to stress you into a decision without putting too much thought into it.

Where Did They Come From? – Another big red flag is where is this offer even coming from? Did you request this information or contact this company? Can you even find this company or individual on google or reputable website? If your answer is no to either of these questions, stop and do research before even responding. Many times, this is a scam.

Shore to Shore's number one concern is our members' financial security. If you are thinking about jumping feet first into cryptocurrency, make sure you are researching legitimate companies to work with. 

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