The crypto space is intense, with incredible innovations being churned out regularly, from DeFi protocols, exchanges, NFT platform, Play-to-Earn ecosystems, and much more. Unfortunately, with this advancement comes a disorder, which involves people losing their crypto holdings to fraudsters in different ways. This article will focus on spotting fraudulent crypto exchanges and safeguarding your cryptocurrencies from unscrupulous elements.
- Team Information
Team information can give crypto enthusiasts an insight into those behind the exchange development and maintenance. Is it a centralized exchange? If yes, who are the developers or faces behind the trade? There is a good chance that a reputable exchange is floated by those notable in the crypto space. However, if the team members’ names are hidden, it may be a red flag.
- Ridiculous Freebies
When a new exchange launches, it typically organizes some incentive system to motivate people to register and use its features. Normally, it may be a scam waiting to happen when the exchange overplays the reward scheme with ridiculous freebies that seem too good to be true.
A good thing about Google Play Store and Apple App store is that they both have a review system that allows users to drop comments, thoughts, complaints, and suggestions concerning apps. Therefore, checking the reviews on the app store and websites before downloading any crypto exchange is crucial. In addition, a quick search on social media, especially Twitter, can tell you if an exchange is fraudulent or not.
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- Check the URL
Sometimes, unscrupulous elements clone the websites of reputable exchanges to gain access to the personal details of their victims and drain their accounts afterward. So avoid clicking the links sent to your email because scammers use this phishing strategy to access crucial information about one’s crypto holdings.