The Biggest Crypto Scams (And How To Avoid Them) – Part 2

When I started preparing these emails, I had a few scams in mind that I wanted to address. But then the list kept growing…. and growing… because unfortunately, fraud is rife within the crypto world.

But here’s the thing. It’s also very easy avoid.

In part 1, I gave you 5 tips for navigating crypto land while protecting your assets. So it’s safe to say, you’re well on your way to being a scam-avoiding pro!

Now let’s take a look at 5 more things we can do to protect ourselves and keep our crypto safe.

#6. Create an email address specifically for crypto 

This is a great idea and it makes a lot of sense. I mean, just think how many websites, apps and social media platforms your current email address is connected to? My guess is, it’s a lot!

Creating a crypto-only email account with no identifying details is a smart move. It will keep everything much cleaner (and better organised) while drastically reducing your chances of a data leak if your main account is compromised.

And while we’re on the subject of emails… 

#7. Don’t fall for FOMO or fear-mongering emails 

When you begin your crypto journey, you’ll start receiving a lot more emails. You’ll get offers, ICO announcements and ‘blink and you’ll miss it’ opportunities. They’ll look completely legitimate and convincing too.

But remember, these emails are designed to appeal to your emotions – namely fear, greed and FOMO (Fear of Missing Out). And what do we always say about emotions?

They don’t belong in the crypto space.

Recently, a database of Trezor users was hacked. The scammers sent an email out to the database announcing that security was breached and holders’ funds were at immediate risk of being stolen. The horror! The email directed people to download the ‘latest version’ of software to ‘protect their assets’. A lot of people panicked and did just that.

And what do you think the app requested from these people? That’s right, their private keys.

To be honest, it was actually a pretty ingenious scam. Sophisticated, well thought out and very well executed. But remember our golden rule?

Never, ever, EVER share your private keys.

So don’t fall for the emotional manipulation of emails, and treat your keys as your most valuable and sacred possession. Do these things and you won’t fall prey to malicious scams.

#8. Give cheap hardware wallets a miss  

There are some things in life that we shouldn’t be frugal about – and our hardware wallet is one of them.

Why? Because cheaper than normal prices = a high chance it’s been tampered with.

Scammers have been known to buy wallets off legitimate sites, install their own malicious, crypto-stealing hardware onto them, then package them up as new and sell them to unsuspecting people (eBay is one of their primary channels). Although it’s tempting when you see a good deal, this is definitely a case of buyer beware.

You should ONLY buy your hardware wallet from authorised, legitimate hardware sellers. This wallet is going to hold your crypto fortune (which, if we’re doing it right, is going to be immense), so it’s no time to be hunting for bargains. Spend the money to get the real deal from a legitimate seller. You’ll be grateful you did.

#9. Avoid fake gurus 

The other day, someone sent me a screenshot of a message thread between Richard Heart and a crypto investor. The message showed Richard asking this person to verify their details before going ahead with a crypto transaction.

When we see stuff like this, we need to step back and ask ourselves: Does this really make sense?

Would Richard Heart, Founder of HEX and the brains behind one of the biggest game-changers in crypto, really have the time to personally contact investors one by one?

The answer is a resounding No.

The truth is, there are so many clone accounts going around on social media right now, but you can generally spot them by their dubious activity and by applying some logic and common sense. Sometimes a quick sense check is all it takes to realise something ain’t right!

Which is good advice for life, really.

And that brings us to number 10….

#10. It doesn’t hurt to be a cynic 

If something sounds too good to be true, it usually is.

This approach isn’t about being a negative nancy. After all, I believe we live in a world of abundance, and mindset is everything.

But a little scepticism is probably healthy, right?

Scammers are a very creative bunch, and they hire marketers who are good at what they do. Their campaigns can be incredibly emotive and pull on our heart strings, or convey such a sense of urgency that it appeals directly to our FOMO. Basically, they do everything in their power to get the outcome they want.

Remember, if it doesn’t make sense, if it sounds too good to be true, if there’s no education or legitimate team behind it – give it a very wide berth.

And that’s where we’ll leave it for today.

I hope you’re enjoying these scam-avoiding tips. Next time, we’ll be looking at crypto educators, shiny object syndrome and celebrity endorsements.