Feel at ease when you invest in cryptocurrencies

Bitcoin, Ethereum & Co .: Important safety tips before you invest

Cryptocurrencies such as Bitcoin, Ethereum, IOTA, Theta and many more manage to bring users into focus again and again. Sudden price increases - which can fall again just as quickly - seem to promise big money with minimal effort. Careless beginners run the risk of losing money not only through more or less “natural” market developments, but also through cyber criminals.

These promise an easy entry or lure with giveaways and deprive inexperienced people of their savings, some of which are old, but apparently new methods. In this article, we collect typical methods that you can come across on the web, on social media portals, in messenger groups or other sources that should make you suspicious.

Tip 1: Nobody will send you back a deposit twice!

Microblogging services such as Twitter, crypto and trading groups on Telegram or other collection points for interested parties are teeming with dangers. A common scam that beginners come across: Apparently large and trustworthy (fake) accounts promise to repay you the multiple value of a deposit at once if you send an amount X for crypto currencies ("coins") to a specified, public address.

Let's make it short: this is usually a lot of nonsense! Just as little as you should be persuaded by an (online) bank or an online payment system to make a transfer in order to get back twice or more, you shouldn't jump on it with digital crypto money either.

If a reputable account does organize a corresponding competition (giveaway), check the source several times - for example through official information for verified accounts or independent voices from other users. But serious online profiles can also be hacked. When in doubt, just leave your hands on such actions.

Tip 2: keep your eyes open to airdrops, forks and co.

Some developers of cryptocurrencies split projects for various reasons, which often results in a new "coin" - a blockchain is forked, i.e. split, and both strands continue to exist independently of one another. The best-known example is likely to be Bitcoin and Bitcoin Cash. The “new” coins are usually available free of charge for users who have the “original coin” at the time of the split. In order to receive the “forked” coin, more advanced techniques are usually required, for example setting up a special wallet for the new coin and certain settings.

Many so-called airdrops go in the same direction. It is true that for certain reasons a crypto project generates additional coins or has to give them away, which users receive free of charge. However, this results in great potential for cyber criminals to exclude unsuspecting users.

What you should definitely not fall for: Websites that promise a fork coin or airdrop by submitting your private key or even the coins yourself via an online input mask. Just as you shouldn't give your bank details to an online shop so that they can take care of your “well-being”, you shouldn't give your sensitive access data to coin providers.

Tip 3: Online providers who promise easy Bitcoin entry and profits

First of all: There are reputable providers such as Coinbase or Binance as well as broker platforms such as Etoro that can give you easy access to the crypto market. But there are also many black sheep in the wake of the established providers that you never hear about again after you have transferred money or entered your credit card details.

The police headquarters in Neubrandenburg warned in mid-January 2021 of a scam in which big money is promised for conspicuously low investments and even a wrong performance is stated.

  1. Subsequent phone calls from supposed experts who advise to make further deposits;
  2. high fees for additional services or payouts and
  3. after the suspicion arose, the following Contacting bogus lawyers, the
  4. the lost money against further payments want to recover

sound like the "best of" online traps from the past 25 years.

Other tips: general caution

In contrast to PayPal or an instant transfer at your bank, there is no controlling and regulating authority that can take care of a correction in the event of damage, for example through an incorrect transfer. When handling crypto addresses, for example, it is imperative not to make any mistakes when copying your own or third-party recipient addresses. So if you want to send crypto holdings, double or triple check details (including the amount of transaction fees) for recipients before confirming them.

Of course, you secure your cryptocurrencies just like any other digital goods: you should keep your master key or private key safe - without the risk of losing them yourself or anyone else gaining access to them. You can secure access to online portals with sufficiently complex passwords and additional two-factor authentication.

Anyone who buys cryptocurrencies and speculates on keeping them for the future should use dedicated (hardware) wallets with bombproof access data and not entrust their money to exchanges on a permanent basis. These can stop support for a coin, be hacked or deny access to your money for other reasons - if you do not keep yourself informed and up-to-date on relevant developments.

According to some reports, the past has shown that "Bitcoins bought earlier and now forgotten" can certainly cause surprises: on the one hand, euphoria from alleged riches, which have been dealt with, on the other hand, if you no longer have the access key or discover that an online one Provider has gone bankrupt in the meantime. We already collected more security hit tips in 2018, when Bitcoin and Co. also came into focus. See the following article for this.

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