How to buy cryptocurrency part 2 – Avoiding Scams

In the previous article, we told you how and where you can buy cryptocurrency

Top 5 tips for avoiding cryptocurrency scams

Research the currency you’re interested in buying

It’s important to know what you’re putting your money into. When you’re buying cryptocurrency make sure you do your research about that cryptocurrency. The valuable cryptos are the ones that strive to solve a problem or have a purpose. Steer away from those cryptocurrencies that require a group of people to invest for it to be valuable. If you look at Pancake swap or Ethereum or even Decentraland, they all exist for a purpose to give customers value and provide them with a platform of features. 

Find out if any of the top exchanges are listing the coin or token

The top exchanges have their own rules on accepting cryptocurrency onto their platform. Most of the big exchanges have strict criteria to list a token or coin for example Coinbase’s criteria is here. 

If the coin or token is listed on a smaller exchange that is not FCA compliant, verify the exchange is safe to keep your money. You can also verify your money is safe by searching on google for reviews on trust pilot of that website or app. You can also search on Reddit and youtube to find out more about the site. If you feel it’s not safe do not buy cryptocurrency 

Watch out for Pyramid schemes (otherwise known as a Ponzi scheme)

The scam attracts investors by promising the generation of high and quick rates of return. Crypto can indeed generate profits but it is rare you will find a coin that will give quick and high returns and the market is very volatile. To find out more about the biggest pyramid schemes in crypto history.

**Please note I do not provide personal investment advice and I am not a qualified licensed investment advisor. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions.