How to Identify Crypto Frauds

Cryptocurrency has been growing in popularity over the past few years, but with its success comes several scams that have become increasingly common. As more people flock to the crypto space, Bitbuy acknowledges the importance of knowing how to identify and therefore protect yourself from fraudulent behavior.

Look Out for Red Flags

The first step in protecting yourself from cryptocurrency scams is by looking out for red flags. Some warning signs include promises of high returns with little risk, lack of transparency regarding company information, and requests for personal information such as banking details or credit card numbers.  

Research Before Investing

Another way to identify crypto frauds is to do your research before investing. Most crypto exchanges will provide resources such as whitepapers or websites where you can get detailed information about the coin or token, you’re interested in investing in. Make sure you read up on any coin or token before investing, and if something doesn’t seem right, don’t invest!

Beware of Promises

Promises of guaranteed returns should be taken with a grain of salt as they are often too good to be true. If someone is offering you guaranteed returns with no risk involved, it’s probably a scam. Be wary of any company that makes unrealistic claims about their products or services as these are often signs of a fraudulent operation.

Regulation and Registration

It is also important to make sure that any exchange you use is secure and licensed properly. Bitbuy is registered by the Ontario Securities Commission and the Canadian Securities Administrators as the first Canadian registered crypto marketplace, as well as registered with FINTRAC as a money services business. Being registered with regulators means we adhere to the highest standard possible when protecting our client's capital.

It can be difficult to tell what is legitimate in the world of cryptocurrency, so it pays off to do your due diligence before investing money into anything related to crypto assets. By researching before investing, being aware of promises made by companies and looking out for various red flags – Bitbuy users can protect themselves from falling prey to crypto frauds. By following these steps and using Bitbuy as your trusted platform - users can rest assured knowing their funds are secure!