In the age of cryptocurrency, avoiding scams at all costs not only saves you money, but time and from identity theft as well. Although crypto at its core is highly secure, people will still try to use tricky techniques to get you to put your money, or your coin in the wrong places. Here are a few tips to protect yourself against crypto scams.

Where You Buy

Where you buy, or mine cryptocurrency from is one of the most important aspects of avoiding cryptocurrency scams. There are a number of reputable places to invest in cryptocurrency, sites like:

Crypto.com

Coinbase

Kraken

Voyager

And even through Venmo.

These channels are all safe and reliable places to purchase or trade cryptocurrency. However, it is surprisingly easy to find websites that are masquerading as cryptocurrency trading locations, and even fraudulent apps. These mediums may end up taking your money, but not giving you any legitimate coin or currency in exchange.

"If you see a website with too-good-to-be-true trade deals or prices, they probably are too good to be true. Focus on reputable, verified websites like the ones above, and carefully research any trading medium that you are unfamiliar with before making a purchase." - Tony Chan, CEO and co-founder of CloudForecast

If a host, platform, or representative is trying to rush you into a purchase, they are probably trying to get you to avoid research.

Phishing

Know how to spot phishing schemes. A phishing scam may come in the form of an email, text message, or phone call. Usually someone will claim to be managing an account of yours, may pretend to be a government agent, or could potentially even impersonate someone involved in a crypto trade.

"Within the context of the cryptocurrency industry, phishing scams target information pertaining to online wallets. Specifically, scammers are interested in crypto wallet private keys, which are the keys required to access funds within the wallet. Their method of working is like that of many standard scams. They send an email leading holders to a specially created website that asks them to enter private key information. When the hackers have acquired this information, they can steal the cryptocurrency contained in those wallets." -Casey Murphy, Beware of Cryptocurrency Scams. Investopedia.

"If you receive a call from someone asking for anything from private keys to a sudden trade, they are almost definitely attempting to get you on the hook with a phishing scam. They will almost definitely try to provide you with a sense of urgency to provide them with this information. Don't fall suspect to their false urgency, and keep your private keys and information safely to yourself." - Alex Wang, CEO of Ember Fund

Spoofing

We've already talked about reliable URLs and websites to purchase and trade cryptocurrency, but one thing to keep an eye out for is spoofing.

Spoofing is where a website will try to impersonate another website. You may be trying to make a trade on Crypto.com, but actually be on a website with a similar, but incorrect URL. Ensure to check the URL of every website you trade on. You should also make sure that there is a lock icon in the left of your search bar. This icon means you are on a secure website.

Any web page lacking this icon is one you should not be trading cryptocurrency on, let alone supplying personal information.

Fake ICOs

An ICO, or Initial Coin Offering can be an exciting opportunity for any cryptocurrency investor or enthusiast. These ICO's are essentially the first release of a new currency. It does not yet have any market value, so they may be cheap, and potentially only have room to grow.

Among the easiest ways for scammers to get you is to offer fake Initial Coin Offerings, ICOs that never pan out, ICOs at higher bounties, or even to plagiarize ICOs,

These ICO plagiarism scams are incredibly common, and are among the highest that potential investors fall for.

"Although some of the ICOs have yielded massive returns for investors, various others have turned out to be frauds. In fact, you can say that scams related to ICOs are the black sheep of the crypto-asset industry, and these sheep are pretty diverse." -Toshendra Kumar Sharma, A Comprehensive Guide on ICO Scams and How to Identify Them. Blockchain Council.

Blackmail

While it may not be the most common scam, blackmail is something to look out for. Someone may call or email you claiming to have incriminating evidence against you for anything from a minor crime, to your web history, or even proof of something like tax fraud. They will demand you provide them a crypto trade to avoid the release of this information.

This is a federal crime, and should be reported to state or federal agencies immediately. If anyone is trying to blackmail you for cryptocurrency, do not respond, and go straight to reporting.

Keep Yourself Safe

"Regularly educate yourself regarding cryptocurrency scams and how to avoid them. People are finding new ways every day to attempt to commit theft of your currency, your money, or your personal information. While this may sound frightening, it doesn't need to be when you stay educated, and take the necessary precautions to protect your blockchain currency." - Brett Sohns, Founder of LifeGoal Investments

Many websites for trading have resources for protecting yourself from crypto scams (Crypto.com is a good example), and simply searching for crypto scams every few weeks will keep you updated on the environment.

Take Your Time

A good rule with any new crypto purchase or trade is to take your time to ensure that it is safe. While it's already been said, if they are trying to rush you, they are trying to scam you. Anything that is new or unfamiliar, spend the time to research and discuss the opportunity with someone you trust-especially when it's in regard to something like an ICO.

"Taking the time to logically think through crypto trades and purposes will serve you with consistency in the long run." - Loic Claveau, CMO of TakeUs!