How to identify fake cryptocurrency

8 Ways on How to Identify Fake Cryptocurrency

Phishing scams in using blockchain are prevalent on the web. So here are tips on how to identify fake cryptocurrency campaigns.

How to Identify Fake Cryptocurrency

The prospect can be frightening for a cryptocurrency investor wanting to take advantage of a plethora of fresh investment options while staying protected from fraudulent ICOs and dubious coins and tokens. 

Even experienced investors may struggle to keep up with the language as blockchain and cryptocurrency technology develops at a rapid rate. While there’s no guarantee that any cryptocurrency or blockchain-related firm will be legitimate or successful, following the procedures mentioned below can help you be as certain as possible that you’re not being duped.

Here are tips on how you can detect and identify fake cryptocurrency:

1. Familiarize yourself with the company’s track record.

While a brand-new company can achieve success in the blockchain and cryptocurrency space, it is highly unlikely. Look for firms that have been established for at least a few years and that have a solid track record and reputation.

2. Look at online reviews and news articles for additional information.

No one knows everything about every single company in the blockchain and cryptocurrency space, but there are other ways you can gather information about an organization. Besides, look for news articles and user reviews for additional information about a firm’s reputation, goals, and progress.

3. Check the company’s social presence.

Before investing in any cryptocurrency or blockchain-related company, look at the company’s social presence, including its Twitter, LinkedIn, Reddit, Telegram, and Facebook accounts. 

For instance, is the company responsive to queries or complaints? Are there common problems or complaints among reviewers?

4. Watch out for red flags.

Red flags to be aware of include an inability to provide clear details. For example, about the company’s location, management team, investors, and advisors; claims that the firm has the largest market share; promises of guaranteed returns; and reassurances that everything is completely legal. 

5. Look for contact information on the website. 

Many fake cryptocurrency sites don’t include any contact information at all. If you can’t find any contact information on a firm’s website, it may be a sign of trouble.

6. Check for SSL certificates. 

Among other things, SSL certificates show that a website is secure and can be trusted to handle sensitive information, for instance. To determine whether a website offers secure payments, look for “HTTPS” in the address bar instead of just “HTTP.” 

7. Look for security seals or logos. 

Several websites offer independent analysis of websites’ security measures using various logos and icons to indicate official approval by authorities such as McAfee Secure or Verisign Trust Seal. Checking for these seals can help you make sure payments are handled securely by a reputable site before you make your payments there.

8. Don’t trust links sent via email or social media platforms like Twitter or Facebook.

Phishing scams, moreover, often take advantage of people’s desire to be up-to-date on blockchain and cryptocurrency technology developments by luring people into clicking links that appear in their email inboxes and social media feeds promising news about new developments in the space – often with headlines like “Bitcoin Crashes!” – but lead victims to phony websites designed only to steal their login credentials and personal data such as credit card numbers and private information.

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