How to never get scammed in crypto (Part 1)
May 2, 2023
For crypto beginners, know the tricks scammers use, and how to make sure your 30 billions remain in your account.
Money isn’t just a physical thing that you hide under your bed or lock in your vault, it’s now 1s and 0s. Let’s face it, everybody is trying to secure the bag, but some people want to secure your bag. We’ve got you though, what better way to beat a scammer at their game than to learn how they think and work.
Everyone knows someone who has been scammed before, they happen often enough to make you wonder why people still fall for them!? It’s simple, while technology evolves very fast, people change very slowly and effective scams prey on ancient human biases:
- Fear: FOMO (fear of missing out), Fear of Loss etc
Greed turns the most sensible people into potential victims of crypto scams. Scammers tempt people with the promise of quick and easy profits, leading them to ignore warning signs and make impulsive decisions. To avoid falling prey, keep your emotions in check and don’t let greed cloud your judgement.
Remember, there’s no such thing as a free lunch in the world of investing, so always do your due diligence and be wary of all that seems too good to be true.
Ignorance is not always bliss & what you don’t know can hurt you., especially when it comes to crypto. As a crypto/blockchain beginner, scammers can deceive you with complex language and present themselves as experts. To avoid falling victim to these scams, take the time to educate yourself on the basics, and be wary of advice from unreliable sources.
Remember, the more you know, the less likely you are to be scammed. So, keep yourself informed and always do your own research (DYOR) before making any decisions.
Fear Of Missing Out (FOMO)
Scammers create a sense of urgency, they say “you made a mistake, let’s fix it NOW” or “you might lose this opportunity” making it seem like a once-in-a-lifetime chance that can’t be missed. It’s important to take a step back and assess the situation with a clear mind.
Remember, there will always be other investment opportunities, and it’s better to miss out on a potentially risky investment than to lose your hard-earned money to a scam.
Scammers exploit people’s excitement and lack of due diligence, overconfidence, as well as inadequate security and lack of understanding. To avoid being scammed, verify any information by asking questions, research thoroughly, and secure your crypto assets.
Stay tuned for the final part of this series. You’ll find out the various schemes that these scammers run, so that you can recognise and avoid them.