If you want to start investing in Crypto assets, it's a good idea to understand the risks and modes of fraud under the guise of investing in crypto assets, so that you don't fall victim and choose the wrong crypto platform. Since cryptocurrencies became popular, scams and scams have become more common, resulting in many crypto investors, especially newbies, losing more than they invested.

As is well known, blockchain technology that allows transactions without the need for third parties and only relies on the internet feels great, which saves time and money. But not infrequently this is used as an attraction to lure victims of fraud in cryptocurrency investing. The modes also vary.

How to avoid it?

So that you don't become one of the victims of fraud and scams in the crypto world, this time I have summarized some of the modes of crypto asset fraud that often occur and how to avoid them.

Ponzi Scheme System

The first is with a ponzi scheme. This scheme is an investment fraud where clients are promised big profits without risk. For those of you who are just starting out investing, especially in cryptocurrency, you have to be careful with the lure of investing like this. It could be a cheat mode with a ponzi scheme. The ponzi scheme itself is one of the most common modes of crypto scams in the financial world. In this mode, each investor will get money in the form of a profit from the investor's next deposit, not a profit from the business being run. As a result, when no other investors enter, you will not make a profit at all. Your funds will also be lost if the containment promoter suddenly disappears.

Fake Crypto Exchange

There are many fake exchange companies circulating on the internet. Moreover, if you want to buy Crypto assets on an exchange, make sure the exchange is guaranteed. Avoid and ignore investment opportunities that do not have clear controls and systems, because these scams can be lost at any time with your assets.

Fake Give Away

Who isn't happy about a giveaway? But you have to be careful with giveaway scam modes like this one. Scammers try to take advantage by offering free Bitcoin or other crypto assets. Fraud with giveaway mode, usually done by first having to send a number of your crypto assets to the address mentioned, on the grounds that you can verify your wallet address and receive the giveaway.

Fake Crypto Wallet

Another important thing that you should pay attention to is choosing a crypto wallet. Cryptocurrency wallets are where you store your crypto assets. To avoid fake wallets, there are several important things you must do first, such as making sure the wallet application is made by a trusted developer. You can do this by checking the name of the developer if he has an official website of the company, and secondly is reading the reviews first.

Phishing

Fraud with phishing methods does not only occur in the crypto world, most industries such as finance, e-commerce, social media, and e-mail also report cases of phishing scams. Phishing will usually take your personal information such as phone numbers, bank accounts, passwords, etc. Make sure to safeguard your personal data by not giving out personal information to anyone. One of the most common phishing cases in crypto is getting a phone with an unknown number, claiming to be from a specific crypto exchange. Callers will provide attractive offers on the condition that you ask for your personal identity. If you get a call like this, it's most likely a phishing scam.

Conclusion

Investing in Crypto Assets is not a scam, and it is safe if you can avoid irresponsible people who use Crypto Assets as a scam. Make sure you choose a safe and official Crypto Asset investment platform.