The crypto world, being as decentralized and new as it is, has a serious problem. There's a good chance you've seen it already. It comes from Scammers.
What are some examples of scammers in blockchain arena? Well, they can take many shapes, but there is a very similar pattern to them. They want access in some way shape or form, to your money. Be it the localbitcoins trader with that too good to be true deal, or someone looking for an unsecured loan "for a few hours", they all need you to hand over control of your funds, to them.
That leads me to the first, and best, safety tip: Don't give nobody nothin'!
If they can't get to your money, they can't steal it. Sometimes the best way to protect yourself is to just stick your holdings offline, and lock them away.
Unfortunately, that doesn't work for most people, most of the time. People need to be able to sell their funds to do xyz, or buy more, to increase their holdings. Or else they are just hell bent on investing their digital currency in some other online program that promises them returns on their money.
You ALWAYS have to remember that nobody is trying to give away money.
That fantastic paypal offer you found? It's a scam. Nobody is giving away more money than they should.
that website that offers 3% returns daily, guaranteed? A classic HYIP scam.
That person that needs that 1 hour bitcoin loan? A scam for drugs, gambling, or just because.
Give it a common sense test before you do anything.
If it doesn't pass the smell test, drop it like a hot potato, and keep on moving. If it seems magical, or out of reach for other people to easily duplicate, there is something wrong, and you don't want to be the one to find out.
Google the website name + scam at the end of it.
Again, really common sense stuff here. Before you join ANY new crypto site, research it, and try to find reviews. Remember, you aren't looking for good reviews! (Easy to post fake reviews). You are looking for people who've been cheated before you. Common complaints are going to be things like "no/spotty withdrawals", "bad support", "missing deposits", and things of that nature. If you see those, either don't join, or go forward EXTREMELY cautiously. No one will bail you out if you get stolen from.
Check whether the company/group are a registered company.
It is very common to see HYIP programs (Ponzi schemes) advertise the fact that they are "registered" companies. Generally in the UK. Check deeper, and see if you can actually find the office that they use. This is typically harder to do, but a lot of the time, you will find a BS office address that doesn't exist. See if google maps can help you.
Don't listen to friends when they tell you "well, it worked for me!".
Most scams operate longer by actually providing the supposed services to a very lucky select few. These people will vocally defend and advocate the scam, murkying the water so that others who are on the fence decide to try it too.
The fact that it worked once, or hasn't failed yet, is not a valid argument for you to try it too.
Google the other person's username.
This works great for peer to peer interactions. Many times, scammers, (Even ones who have been caught!) will reuse usernames, and google can help you to find clues, and hints of their past dealings.
Always use Escrow.
Yeah. This one is pretty self explanatory. If someone is offering you a great deal, but don't want all the trouble and hassle of escrow, understand that your money is probably going to vanish without a trace. ALWAYS protect yourself when you can.
These are all cornerstones of keeping yourself safe online, as well as in the bitcoin universe. A decentralized system that favors peer to peer interactions will never be totally safe. Ever. The best that you can do is watch for the obvious scams, and be as careful as possible. Hopefully you (unlike me), can learn from reading the tips, rather than the significantly more expensive way of learning by experience. We can't stop scams altogether, but we can all try to make the world a slightly safer place.
Have I missed anything important? Let me know down below.
