Avoid Bitcoin scams by keeping your crypto assets secure. Be wary of promises of guaranteed or risk-free investments and use public scam trackers to verify any cryptocurrency exchange you wish to invest with. Also, be careful when downloading add-ons or software that link your crypto wallets. Segment your crypto exposure by using separate wallets for daily use (hot), cold storage and testing unknown dApps (sandbox). Finally, only trade on well-known cryptocurrency exchange platforms and avoid ones that are unfamiliar.

Fraudsters will often impersonate government agencies, law enforcement or utility companies in an attempt to gain your trust by claiming that you owe money or your accounts and assets are frozen. They will then tell you to send money or cryptocurrency to a wallet address they control as a way of solving the issue or protecting your money.

How to Avoid Bitcoin Scams and Stay Safe

Never send cryptocurrency to anyone you have not met in person or communicated with regularly over a period of time. Additionally, don’t provide sensitive information such as copies of your ID or passport to a website you are not familiar with and always verify requests for access to your crypto with the published contact number of the regulating agency involved.

Be especially skeptical of any investment offer that asks you to transfer your crypto assets from a private wallet to an exchange or other third-party wallet. This can allow criminals to steal your private keys and defraud you of your assets. Ensure that you only trade on regulated platforms and enable multi-factor authentication and passwords to protect your accounts and wallets. Also, always use private Wi-Fi when connecting to your crypto and regularly review your account history.