Risk management to avoid becoming a victim of cryptocurrency scams

in Project HOPE8 months ago

Introduction

In the previous article I published content on some considerations for risk management in the management of decentralized wallets, now, in the quest to extend some basic tips that can help us avoid being victims of scams in the blockchain, I wanted to expand on aspects not considered in the article.

In the aforementioned post I emphasized on the two basic tips that will increase our chances of success, the first is to design a trading strategy that will help us to be more consistent when executing buy/sell operations, and the second tip is to diversify our portfolio, that is, to invest in more than one cryptocurrency.

As I highlighted in yesterday's publication, in addition to the two fundamental recommendations for adding capital, there are also other recommendations related to security levels, which undoubtedly have equal or greater importance than the two previous ones, since they prevent us from losing economic resources.

In the case of the scams that occur daily in the blockchain, we generally overlook the management of multiple strategies that increase our security levels and thus avoid being victims of scams, among the best known strategies we have:

1. Diversification of Wallets

Executing strategies that go beyond the basic notions we have of the blockchain will always keep us away from being victims of scams, now, at some point in our lives we have heard the phrase "never put your eggs in one basket" although the message has biblical connotations, it is a reference message in financial matters.

In the world of cyptocurrencies, the phrase in question not only invites us to diversify the investment in more than one cryptocurrency, but also to keep our cyptocurrencies in more than one wallet, since this action gives us the possibility to reduce the risk of economic losses.

Basically, we reduce the risk of financial losses, by dividing and transferring the balance in more than one platform that offers financial exchange services either by centralized or decentralized way, among these; Binance, Huobi, Poloniex, Mexc. Ionomy, MetaMask, Binance Chain Wallet, TrusWallet, among others.

Source: EuropeanBusinessReview

In recent days, first hand I have learned of cases of scams from colleagues like @belemo and @alanasteemit, both unfortunately have been victims of scams in MetaMask by people who somehow accessed their passwords, in these cases the saying "if the basket falls, all the eggs will break" applies, therefore, if instead, we place our cryptocurrencies in more than one wallet, the risk of losses decreases considerably.

2. Web 3.0 compatible operating systems

Web 2.0 operating systems have excessive security problems, so one way to stay away from scams is to install state-of-the-art operating systems that are Web 3.0 compatible and have a higher level of security.

However, if we do not have the resources to install a new operating system, the ideal is to avoid leaving money in decentralized exchanges such as MetaMask, remember that this wallet is a software that is installed as an extension of a web browser and is used to interact in the blockchain, therefore, it is a flank of attack if our operating system lacks optimal levels of security.

Source: EuropeanBusinessReview

3. Use more secure browsers

The common Firefox and Chrome browsers, although the most widely used, are the ones that offer the greatest risks, due to fake extensions that have tricked many users into revealing the credentials needed to access their wallets, therefore, it is best to use browsers that guarantee a malware-free environment to prevent phishing attacks.

In particular, a few months ago I decided to install Brave Browser, because it offers a higher level of security compared to the aforementioned browsers, additionally it requires https connections, blocks unsecured scripts, blocks cookies, and forces you to use secure connections.

4. Avoid using public access internet connection

In the case of countries in South America it is common to find public internet access areas or free Wi-Fi in the cities, these types of connections are technological attacks, therefore, it is not advisable to use public Wi-Fi to perform our operations, it is advisable to execute transactions with a private internet connection.

Conclusion

Consequently, considering including the strategy of diversifying wallets that have varying levels of security greatly misleads fraudsters, as it somewhat lowers the correlation of success to these unscrupulous individuals, installing operating systems with higher levels of security, using more secure browsers, and avoiding executing transactions with public utility internet hotspots.

OBSERVATION:

The cover image was designed by the author: @lupafilotaxia, incorporating the background of the image: Source: BitcoinExchanGeguide

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Greetings dear @lupafilotaxia, no doubt this type of content allows us to have a broader view on the care we must take to avoid being victims of scams in this digital world. Excellent contribution

Hello @madridbg

It is necessary to have a vision of the whole web environment, and more in these security issues.

Best regards, be well.

Greetings friend @lupafilotaxia, excellent post on how we can avoid being scammed, diversification of digital wallets and cryptocurrencies certainly helps to minimize the risks of losing our resources in scams.

hello @lupafilotaxia,
web security must be a culture, although many platforms are very secure, we must remember the way most websites were designed, these platforms were created to be as easy to use as possible, this means that passwords must be easy to recover and transactions must be simple, that is why with wallets like metamask that do not have two factor authentication we must be very careful when associating them with any web service as fraudsters will do everything they can to get you to give them access, then they simply steal whatever is in that wallet.

Hello @trabajosdelsiglo

That's right, unfortunately in these issues web security has not established a culture that intuits that we are alert at all times.

Best regards, be well.

Indeed staying attentive is much required in Crypto space to keep ourselves safe because there are many scammers who try to use various tactics for this. Great article to share awareness.

Hello friend @alokkumar121

Exactly, the scammers are usually ingenious and put into practice various tactics, in the face of that reality it is only up to us to be alert at all times, and not to neglect our security levels.

Best regards, be well.

Hi @lupafilotaxia
Very good advice you bring in this post. Distributing our resources in different Wallets is one of the best strategies we can do to keep our security. Also, backing up our keys is elemental in all this.
Thanks for this contribution.

These are excellent tips that one needs to get handy with to avoid crypto scams. Wallet diversification is very important. I like the phrase you used:

Never put your eggs in one basket

Obviously, one needs to distribute their assets through various wallets.

Nice piece buddy

Hello @samminator

Correct to distribute our resources in more than one wallet, in itself already decreases the risks of total losses.

Best regards, be well.

 7 months ago (edited)

Hello friend @lupafilotaxia, excellent recommendation especially with the browser.
Now I will also recommend an excellent open-source browser is the famous Opera, this browser also offers a lot of security.

Greetings dear friend. A very important issue, regarding cryptocurrencies the issue of vulnerability is fundamental, we must manage different ways to safeguard our assets and mitigate losses by scams or attacks, browsers are very vulnerable, so the extensions are not very safe to store money, the best will always be external wallets, and as the saying goes "do not put all your eggs in the same basket" applies very well.

Hello friend @emiliomoron

Correct and the way to mitigate losses from scams or attacks, is precisely to be alert at all times, and not to neglect our security levels.

Best regards, be well.

Greetings friend @lupafilotaxia, I have really seen recently many problems of scams in the usual browsers, this is generating that we migrate to safer browsers, I am already changing the browser I use to avoid any risk, excellent information that you share with us.

Hello dear friend @lupafilotaxia, I think your publication is excellent, it allows us to take into account the risk we take when we do not take the necessary security measures to protect our capital.

I will take into account your advice, have a great weekend.

Greetings @lupafilotaxia
Thank you very much for sharing such an interesting publication, no doubt that these tips are essential to keep in mind and to be more cautious with our resources. Being able to know about the negative experiences suffered by our fellow community members, will open our eyes to be more attentive with our wallets.

Hi @dgalan

It is necessary to be more attentive to this kind of things, since in this world of cryptocurrencies there will always be people who try to take advantage of the oversights that we have at the security level.

Best regards, be well.

First of all excellent post. As per my thinking due diligence of every Project is very important so that you can keep your investment.

I also do my research work and finding so that to keep my investment safe. And never put all your funds in one project for more safety.

Hello friend @adityajainxds

This point of never putting all our funds in one project, should be a premise to consider at all times if we want to increase our security levels.

Best regards, be well.

Hi @lupafilotaxia,
I learned a lot from this article. Thank you for publishing it.

I would like to add two recommendations.

-Never ever share the secret keywords of your Metamask wallet with anybody and never ever write them anywhere on the internet other than the wallet software.
-Bookmark the DEFI sites you use. Do not connect your wallet to an internet site you don't know.

Hello @muratkbesiroglu

Thanks for those two recommendations, no doubt, they are also of vital importance to increase our security level. Again thanks for that.

Best regards, be well.

We should see less scams this holiday season than in the past. That said, nice to keep an eye on.

Hi @machnbirdsparo

Let's hope so, it would be very unfortunate to have losses at year end.

Best regards, be well.

 7 months ago 

Dear @lupafilotaxia

Such an important topic. Thanks for bringing it up. Resteemed already.

In the previous article I published content on some considerations for risk management in the management of decentralized wallets

It would help if you would attach a link to that post. Going through anyones profile while looking for some old post is quite a discouraging process.
I've tried to find this post you're referring to and I've failed :( Could you please share link with me?


Back to main topic:

I'm watching number of youtubers on daily basis and I've learned already that some of they have been hacked. And it seem that mostly those who have been using metamask were targets.

I myself am metamask user and I've learned not to ever use it while I'm being connected to any sort of public and unsecured wi-fi. This is one hell of a lesson everyone should learn.

Enjoy weekend ahead of you buddy :)
Yours, Piotr

Hello dear friend @crypto.piotr

Thank you for your remarks I will take them into consideration. Certainly using public Wi-Fi is not safe at all, and it is one of the reasons for scams, many people are not aware of that.

Best regards, be well.

Very good recommendations my friend. Certainly we must review very not to be a victim of scams scams apart from those you have already given I think it is essential to take care of the keys if we have to enter our accounts from computers that are not ours it is best to verify that our keys are always hidden and that they are not auto-saved in the system. Thanks for sharing

Hello @emimoron

We need to be more attentive to this kind of things, checking and changing our passwords regularly also a strategy to increase security levels.

Best regards, be well.

I'll take that into consideration.

Hi @ronindboss

Thanks for your visit, I hope the post is useful for you.

Best regards, be well.

Hello @lupafilotaxia, Your post is very timely, in these times we are facing great risks with our browsers and devices, so we are very exposed to electronic fraud, and in line with your recommendations regarding diversifying wallets and the use of a secure browser, I also have out of habit not using another person's computer or outside the home.

Great advice you leave us in your post today.

Hi @tocho2

Electronic fraud will always be at our lurking, and the way to allege us to be victims of scams, is precisely being at the height of the changes that are being generated at the computer level to seek to optimize the security of our devices in security in the blockchain.

Best regards, be well.

Hello @lupafilotaxia, the increased fame in the news of cryptocurrency has also attracted more scams and of course there is a need to write about how funds and wallets can be protected over this space. Posts like this are extremely important at a point like this.

Definitely a good level of computer security is essential to keep our resources safe, plus as you say diversification can lead us into the hands of fraudsters.

Hello @rubenp

Certainly a good level of IT security helps us to alegate us from being victims of scams on the blockchain.

Best regards, be well.

With the rate people are becoming victim of cryptocurrency scam recently is getting alarming. I believe though the number one option you mentioned can be useful but at the same time it has become saturated. Even when the wallet is diversified, there is still the risk of been victim also

I believe using web secured browser can be safe most time also

Hello @mandate

Diversifying is an option that many have not yet achieved, but certainly using web browsers that provide higher level of security is an extraordinary way to plead against scams.

Best regards, be well.

Thanks for this information, although I am already using it before.

Very help full Topic in pakistan i see lots of FAKE websites that make fake withdraw its best article for every pakistani

Hi @nabeeel

Glad the post has some utlity for you.

Best regards, be well.

Helpful post,thank you.

Hello mate! Those notes are indeed very important as almost all of us are using crypto wallets or are involved in any type of risky things in crypto world. And actually I've found those notes very useful as I started looking again whether I have all of them to be secure and safe.

Thanks for sharing!

Hello @lennyblogs

It's always good to increase the levels of IT security, as it helps us to aleve us from being victims of scams on the blockchain.

Best regards, be well.

Dear @lupafilotaxia you have put together some very useful tips.
Indeed this is a risk we face everyday.
Hope reading this post helps people reduce their risk
Have a great weekend :)

Thanks friend, @lupafilotaxia, this is indeed very helpful.

I have had quite some members of my who fell victim of scams, in one day a Customer of mine got scammed of over $1,500 by this unauthorized entities. Some of them infiltrate users wallets by promising airdrops and free mining.

I think the use of free internet is also an area that needs to be paid attention to. Using one wallet to keep crypto assest is very unsafe as well.

This is helpful, thanks brother.

Thanks this is a very comprehensive guide on how to avoid some scam pitfalls, diversification is very good and recommend when it comes to crypto currency, also its worth noting users are advised to check web links properly before accessing any site thanks much.

Hi @mccoy02

Good point, certainly check web links properly before accessing any site, it is a good way to avoid falling for scams. Thanks for this reminder.

Best regards, be well.

 7 months ago 

Those few videos would be very useful:
I had my Crypto Wallet Hacked and I lost everything in an instant. Avoid similar misfortune.

HACKERS STOLE ALL THE CRYPTO IN MY METAMASK WALLET | DON'T LET THIS HAPPEN TO YOU!

My MetaMask account was hacked - $4000 LOST

Metamask - DON'T get HACKED! ???? | TIPS

How Hackers Steal Your Crypto Without You Knowing... And How to Prevent it. - George Levy

Crypto Security Tips: How to Never Get Hacked!

Thanks friend @crypto.piotr, this AudioVisual material will be of great help. We must be alert, in recent days scams on MetaMask are on the rise. Thanks again.

Good post.I am new to this platform .

whatsapp telegram group so please add me

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