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Common Cryptocurrency Scams: Bitget's Safety Guide

Common Cryptocurrency Scams: Bitget's Safety Guide

2024-05-28 | 5m

Cryptocurrency has surged in popularity over the past few years, drawing in countless investors eager to tap into the digital gold rush. However, every silver lining has a cloud. The booming crypto sector has also given birth to a myriad of scams and frauds. This article will outline these scams and give tips on how to avoid them.

Phishing Scams

Phishing remains a top threat. Scammers use emails, SMS, or messaging platforms, often masquerading as reputable entities or businesses. Their objective is simple – to trick individuals into revealing sensitive data such as login details, seed phrases, or private keys. Always be skeptical of unsolicited messages, and never share your private keys or passwords.

Learn more: Your Guide to Defeating Phishing Scams

Tips for Bitget Users:

- Activate the anti-phishing code in the ‘Security ’ section. Once you’ve set up your code, it’ll be included in all official Bitget emails.

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- Always ensure you're on the official Bitget website by visiting the Bitget Official verification channel.

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Ponzi Schemes

Ponzi schemes are another rampant scam in the crypto world. Here, fraudsters lure investors with the promise of lucrative and attractive returns on their crypto investments. However, they use funds from new investors to pay off earlier ones. Eventually, this house of cards crumbles, leaving investors high and dry. To sidestep Ponzi schemes, always be skeptical of investment propositions that sound too good to be true.

Fake ICOs/ IEOs

Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs) are popular fundraising avenues for budding crypto startups. But not all are genuine. Many are orchestrated by scammers who set up fake websites or social media profiles to promote their sham ICOs. Unsuspecting investors who pour money into these ventures soon find their funds vanish into thin air. To steer clear of fake ICOs/ IEOs, always conduct thorough research into the company and its team before parting with your money.

Bitget's solution: Bitget Launchpad is your trusted platform for vetted projects. We meticulously select only the most promising projects, having already offered IEOs to nine handpicked projects.

Hacking Attacks

Crypto exchanges and wallets are prime targets for hackers. These cybercriminals deploy a myriad of tactics, from phishing to malware attacks, to breach security and siphon off funds. To fortify against hacking attempts, always employ strong passwords and enable two-factor authentication, especially for your Bitget account.

Pump-and-Dump Schemes

A pump-and-dump scheme usually involves a group of insiders planning to buy a particular low-priced token, which is normally new and has a small market cap. The insiders then use marketing tools such as social media to spread the news about the token/ the project, hype it up to draw investors and encourage trading activity, increase demand for the stock, and drive up the price.

When the token price is high, the insiders then rapidly sell off their own supply, pocketing profits and tanking the token’s value. This is when the majority of investors are stuck with mostly worthless tokens that they may not be able to liquidate quickly.

Rug Pulls

Derived from the idiom "pull the rug out", a rug pull in the crypto world refers to the development team suddenly withdrawing all liquidity and support from their newly launched project, leaving unsuspecting investors with nothing but a handful of worthless tokens. Rug pulls are most commonly seen in the DeFi (decentralized finance) world, and many investors, novice and seasoned alike, have fallen victim to this scam.

Learn more: What is a Rug Pull?

Tips to avoid Rug Pulls and Pump-and-Dump schemes

● Do your own research (DYOR). Never trust someone just because they sound persuasive.

● Be vigilant. Always play safe when you smell something fishy.

● Choose trusted exchanges to trade on. A trustworthy exchange usually requires extensive vetting and audit processes before listing a coin. Bitget, one of the world's leading crypto exchanges, is a prime example.

Why Bitget?

Bitget stands as a leading global centralized exchange, solidly dedicated to preventing scams and frauds. This ensures that both user funds and data remain uncompromised.

When it comes to security challenges, Bitget adopts a comprehensive risk control strategy, incorporating both hot and cold wallet segregation. This approach is backed by industry giants in security technology, including Suntwin Technology, Qingsong Cloud Security, HEAP, Armors, and more.

Bitget's relentless dedication to security has been validated with a place in the top 10 Exchanges by Cybersecurity Rating from Crypto Exchange Ranks (CER). We're also proud to have received 12 A+ Ratings from SSL Labs, acknowledging our efforts to shield user data and assets.

At Bitget, your security isn’t just a concern—it's a promise. We consistently push boundaries to amplify our security protocols. Sign up with Bitget today and dive into a cryptocurrency trading experience where safety is paramount!