Avoiding Cryptocurrency Scam: The Dos and Don’ts in Choosing the Right Cryptocurrency Investment

Being an active player in the cryptosphere has taught me of all things that the market can accommodate and favor only as many people as are willing to do what it takes to survive in the terrain. Getting scammed in the cryptosphere is rampant but avoidable and getting on the better side of the tide depends on a series of factors on the part of the individual. These article helps pitch new investors in the right direction in being an active player in today’s digital currency space.

The Volatility Of Digital Currencies

The cryptosphere presents a highly volatile digital currency and financial ecosystem in which prices and values of assets can surge remarkable both upward and downward within a short period of time. A very good example of bitcoin price surge was documented by en.wikipedia.org/wiki/History_of_bitcoin, in the article, Bitcoin was sold for $17900 as at December 15, 2017 and the price rose up to $19783.06 as at 17 December 2017. A dip in price was discovered on the 22^nd December that same year.

This volatility of cryptocurrencies is seen by some as a negative onus while for some, it creates the avenue to take advantage of the fluctuations to maximize gains by timely and accurate market analysis, this point was aptly put by Richard Branson in his analysis of Bitcoin

“Well, I think it is working. There may be other currencies like it that may be even better. But in the meantime, there’s a big industry around Bitcoin. — People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too.”

Whatever position an investor takes is influenced as a result of some factors which can vary from one investor to the other. For the benefit of new investors to crypto, this article summarizes the basic dos and don’ts you should keep in mind before investing in any cryptocurrency-based project.

The Dos of Crypto-investment

Ensure you make your research: The world of cryptocurrencies is as dynamic as any financial market you can think of and as such, news and other such information contribute to the market trend and it’s sensible for you to understand the terrain, study the cryptocurrency project you hope to invest in and be sure of your analysis before investing. With due diligence paid to the general market research, you are good to make an entry.

Choose your Investment plan: Now that you have understood the digital currency market behavior, the next thing to do is to decide or choose an investment plan. There are several ways to make money in the cryptosphere and these ways include but not limited to;

• Cryptocurrency trading
• Mining
• Owning a Masternode and;
• Participating in Initial Coin Offerings

Of these, the first two are the most popular and thus may have more reference guides but the other two are also gaining grounds and can also be considered. You must intelligibly choose the right path for investment based on your interests and analytics so as to avoid being scammed in the space you know next to nothing about.

Guard your assets:

To avoid losing your digital assets, you must create a safe wallet for effective storage. Trading platforms offer wallets with passwords and private keys in the case of a decentralized exchange, these codes and passwords must be stored securely and not shared with anyone as this is one of the major ways investors get scammed. Guard your assets as securely as possible and you will hardly fall, victim of scams,

The Don’ts

Now that you know the important things to get you started, it is pertinent to know that the don’ts mostly is the opposite of the cautions highlighted above in addition, never;

• Invest in any project be it a new trading site or new altcoin without doing a thorough background check of the project developers. Many people including myself have been scammed due to this oversight. Ensure the owners of the project have a good record with a physical correspondence
• Click on spam related posts that might introduce a malware that can gather data without you knowing.
• Trade only on platforms, avoid dealing with anonymous individuals who have no link to a genuine exchange.

Avoiding Cryptocurrency Scam Conclusion

Cryptocurrency and the associated blockchain innovations help a lot of people to make a living. Although many people invest without adequate knowledge, its never the recommended approach to grow to become a whale in the cryptosphere. The cryptosphere is constantly always under serious attacks but with the tips stated above, you can stay safe and avoid being scammed.