When the cryptocurrency market moves from a bullish to a bearish cycle, we can see a lot of scams happening in the sector. Recently, news came that DubaiCoin is a scam and was not an official cryptocurrency. So, as time passes by, it will become increasingly important to prevent crypto scams. So, here are some tips from British bank Natwest on how to do so. They are one of the major British banks and have repeatedly cautioned users while investing in cryptocurrencies.
How to prevent crypto scams?
There are some things that one needs to keep in mind to avoid any kind of scam. Most of the scams have a clear sign that gives them off. Natwest has said that many users fall victim to scams where they use fake celebrity endorsements. These endorsements win our trust, and we don’t think about verifying the project ourselves before putting our money in these. This is also why the Bank has launched a scam alert option in its UK mobile app.
On their part, Natwest is actively working to prevent crypto scams and also urges the customers to take necessary steps. Here are 3 key things they would like all of us to keep in mind:
- If someone is contacted by a trader or a company of sorts promising big profits by investing in crypto, then it’s “a scam.” Always remember no good company contacts users directly. You always contact them.
- Be in charge of your wallet. Having your keys with you is really important as anyone with the keys can access your holdings. If you don’t have the keys to your wallet, then it’s a scam.
- Always work with sites and sellers that are registered under the FCA (UK Financial Conduct Authority). If someone is not registered, something fishy is probably going around there.
Some additional tips
Always remember that there is no easy or quick way to make money. We have seen the cryptomarkets turn many investors into millionaires overnight, and you could say they are lucky. But in general, if you see doubling schemes or quick get rich schemes, then it is 100% a scam. Just think about it, if they knew how to get rich in 2 days, why will they teach you rather than doing it for themselves. On the other hand, if someone can double their holdings in 5 mins, they won’t be doing it for others.
What are your thoughts on the tips to prevent crypto scams? And do you have anything that you would like to add to the list? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: HDFC and SBI bank warns users dealing in cryptocurrency
