As a result of the massive growth experienced in the sector, it has led to the rise of many negative trends. The number of scam projects and scammers in the cryptocurrency space has increased massively over the past few months.
Fake Crypto Apps and Wallets Are on the Rise
The number of fake cryptocurrency applications has been increasing in recent months. This is due to the massive growth experienced within the cryptocurrency space. Scammers are cloning cryptocurrency trading applications and uploading them on popular stores such as the Google Play Store and the App Store.
This has resulted in thousands of traders signing up to fake platforms and losing their investments once they open accounts with them. Some of the fake crypto apps promise investors massive returns on their investments.
Some of them claim to double or triple investments every day if the users deposit a certain amount. The apps leverage the lack of crypto knowledge of new investors and the greediness of some traders and investors. Anyone that understands how the cryptocurrency market works will know that there is no certainty in terms of returns on investment.
The crypto market, like other financial markets, is volatile and highly unpredictable. The prices of assets are affected by the news, government policies, and other fundamental and technical issues. Hence, investors know that they need to understand the fundamental aspects of cryptocurrencies before they start investing.
Another way investors lose money is via fake cryptocurrency wallet accounts. Traders and investors have complained about downloading the fake versions of popular wallets such as Trezor and Ledger. By providing their details and funding the accounts, the investors lose their money to the scammers.
As a result of the fake cryptocurrency applications and wallets, crypto investors have lost hundreds of millions of dollars to hackers over the past few years. Investors need to play an active role in protecting their cryptocurrency assets. Here are certain ways investors can protect their crypto holdings.
Only Download Official Apps and Wallets
The first step to protecting your funds as a cryptocurrency investor is to ensure that you only download the official apps and wallets. Usually, cryptocurrency platforms add the links to their official apps on their websites. Hence, we recommend visiting the official website of a cryptocurrency company and using the download link to access the app via the Play Store or Apple Store. Doing so would ensure that you don’t download the fake apps on the app stores, and your investment will be safe.
Avoid Apps that Promise Regular Returns
Another way you can avoid getting scammed in the cryptocurrency space is by avoiding all apps and platforms that promise regular returns. We have numerous cryptocurrency apps and platforms that promise investors 100% daily returns on investments or more. However, keep in mind that all those apps and websites are fake. The cryptocurrency market is highly volatile, and it is almost impossible to determine the price movement of assets. As such, it is impossible to promise a certain level of returns per day. Cryptocurrency investment is easy, and anyone can start investing in Bitcoin and other cryptocurrencies without giving others to do it for them. Research projects and invest in the ones you are most comfortable with.
Don’t Link Your Wallets to Unknown Sources
You stand to lose your funds if you link your cryptocurrency wallet to unknown sources. Scammers and hackers usually use phishing links to deceive investors and gain access to their wallets. To stay safe, ensure that you don’t link your hot wallets to external sources, especially those that you don’t trust. To be on the safer side, it is recommended you store your cryptocurrencies in cold storage wallets. These wallets provide better security and ensure that your coins are offline until you are ready to use them. Trezor, Ledger, and KeepKey are some of the leading cold storage wallets you can use to safely store your cryptocurrencies.
Properly Store Your Wallet Keys
Crypto investors also lose access to their investment when they don’t properly store their wallet keys. The wallet keys are important, and you need to have a lot of control around getting access to your wallet. Safely store the wallet keys at locations where other people can’t gain easy access to them. Furthermore, ensure that you don’t share the wallet keys online or with anyone. Keep a copy of the wallet keys and recovery phrase at a safe location that can be easily accessed by your family members in case something happens to you.
Fake cryptocurrency applications and wallets are on the rise, and investors have lost millions of dollars to these scams over the past year. However, investors can protect themselves and ensure that they don’t lose their investments to scammers if they carry out due diligence in the market.