According to OCryptoCanada, cryptocurrency scams have been on the rise in Canada. It’s important to know how to protect yourself from being a victim of these scams, and we’re here to tell you just that! We will discuss 7 ways that Canadians can avoid cryptocurrency scams. These are all tried and true methods that won’t leave your pockets lighter than before.
Tip #01: Don’t believe everything you hear.
This is a general rule of thumb that should be applied to all aspects of life, but it’s especially important when it comes to investing in cryptocurrencies. There are plenty of scams out there that promise big returns on your investment, so always do your research before committing any money. If something sounds too good to be true, it probably is.
Tip #02: Stay away from online ads.
Similar to the first tip, don’t trust anything that you see online when it comes to cryptocurrencies. Many scammers use fake ads and phishing schemes in order to lure people into investing their money with them. Always be sure to verify the legitimacy of an ad before taking any action.
Tip #03: Don’t store your cryptocurrency on an exchange.
This is probably one of the most important tips that we can give you. When you buy cryptocurrencies, be sure to move them off the exchange and into a secure crypto wallet. Leaving your coins on an exchange makes them susceptible to theft by hackers.
Tip #04: Use two-factor authentication.
Two-factor authentication is a great way to add an extra layer of security to your online accounts. This process requires you to input a code sent to your phone in order to log in, making it much harder for someone else to gain access if they manage to get your password.
Tip #05: Be careful with downloadable wallets.
There are a number of different cryptocurrency wallets that you can download and install on your computer. While this is convenient, it leaves you open to hackers if they manage to get access to the wallet file. Always be careful when downloading these types of programs as there have been numerous cases where malware has been bundled with them in order to steal cryptocurrencies.
Tip #06: Monitor suspicious activity closely.
If anything looks suspicious or just doesn’t feel right about an investment opportunity then trust your gut! You should always be aware of what’s going on with your account, especially during any transactions involving large amounts of money – for example Coinbase requires at least two confirmations before accepting an amount over $100 USD equivalent (check out our blog about this here). If you notice any unusual activity on your account, be sure to report it right away.
Tip #07: Spread out across multiple exchanges.
Last but not least, one of the best ways that you can protect yourself from scams is by spreading your money around different cryptocurrency exchanges. You never know when a particular exchange will become vulnerable to hacking or shut down without warning, so it’s always good practice to separate some of your funds into an online wallet and buy cryptocurrencies from other reputable companies as well. Just make sure they don’t store them in hot wallets!
A final note about these tips – while we believe these are all great methods for protecting yourself against crypto scams.
