This article discusses the importance of safety in cryptocurrency trading and offers tips to help you trade safely.
The crypto market offers many opportunities for everyone to make good money. Unfortunately, its low entry barrier attracts many people with different motives and ambitions.
If you’re new to crypto trading, you must be cautious to avoid scams when selling or buying cryptocurrencies. This article discusses the importance of safety in crypto trading and offers tips to help you trade safely.
The Importance of Safety in Crypto Trading for Beginners
The crypto industry is more advanced than the traditional financial industry, requiring increased safety measures. This industry operates on a decentralized network, making your safety your responsibility.
Crypto transactions are immutable and irreversible. This means you cannot change or undo a transaction after completion. You must ensure your peer meets all transaction requirements before releasing funds or coins. No customer service representative can reverse your transaction if you’re careless.
In addition, many bad actors in the crypto space are developing more creative ways to perpetuate cybercrimes. To avoid becoming a victim, you must be vigilant and stay updated about their latest tactics.
While the crypto market is an excellent place to earn and build wealth, its features also make it a safe hive for criminals to exploit ignorant traders. You can only succeed by prioritizing and implementing safety measures when you trade.
4 Tips To Safely Buy and Sell Crypto as a Beginner
If you’re just starting your trading journey, you must be especially cautious when navigating crypto’s dark side. Below are some effective safety tips to guide you:
Choose a Reliable Exchange Platform
Crypto trading platforms allow you to trade cryptocurrencies using your own funds. These platforms are not regulated by any government agency and do not follow any specific privacy or security guidelines.
While the lack of regulations makes all platforms a security risk, some have proven reliable over time. To choose a reliable exchange platform, read customer reviews about each platform and follow the recommendations of veteran traders.
You can also examine a platform’s onboarding and verification processes to discern reliability. Platforms that use an ID scanner app for KYC verification assure users of high security.
Beware of Fraudulent Coins
Many cryptocurrencies exist in the crypto market, but not all are legitimate coins. Some are exit scams designed to raise funds and abruptly shut down, with their creators carting away the money.
Some fraudulent coins are hard to identify. They may even have celebrity endorsements and claim SEC compliance. However, these are popular red flags that can help you identify and avoid fraudulent coins.
As a beginner, the safest option is to buy only coins listed on popular exchanges like Binance and Coinbase. Avoid coins with exorbitant return promises. In crypto, if it sounds too good to be true, it likely is.
Be Careful of Phishing Websites
Some creative cybercriminals clone real websites and exchange platforms to intercept transactions. Perpetrators introduce these phishing websites through fake support calls, emails, and social media advertising.
These sites are usually hosted on fake URLs, so you can spot them with good attention. You can install and use browser extensions to detect phishing websites and avoid trading on them.
Avoid QR Code Generators
Quick Response (QR) codes simplify crypto transfers. They allow you to scan a wallet address with your camera, making them convenient, safe, and reliable. Provided you generate the codes from your wallet, this method is also secure and reliable.
However, using online QR code generators increases your risk because of the prevalence of fake QR code generators. Cybercriminals use these fake code generators to replace wallet addresses with theirs and intercept transactions. Avoid QR code generators to ensure safe transactions.
How to Avoid Crypto Scams as a Beginner
Besides intercepting transfers during buying and selling, cyberattackers use other crypto scams to steal assets and funds from unsuspecting traders. Here are some ways to protect yourself from crypto scams:
Endnote
Although the crypto market offers many opportunities for everyone to make money, some prefer to use this platform to scam and defraud others. You can protect yourself when buying and selling crypto by using a reliable exchange platform and avoiding QR code generators, fraudulent coins, and phishing websites.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.
