The sale of crypto assets is an important stage for any investor or trader seeking to make a profit or get out of a disadvantageous position. However, along with the huge opportunities, the cryptocurrency market is replete with many fraudulent schemes and tricks. In order to protect your assets and avoid fraud, you must follow certain rules and recommendations. In this article, we will take a detailed look at ten tips that will help you safely sell cryptocurrency and minimize risks.
1. Use only proven and reliable exchanges
The first and main step to the safe sale of cryptocurrency is to choose a reliable and proven trading platform. Fraudulent exchanges or exchange services may not only fail to repay your funds, but also steal personal data.
How to choose a reliable exchange:
Study the reputation: Before registering on the exchange, read the user reviews and the reputation of the platform in the cryptocurrency community. Avoid exchanges with bad reviews or stories of fraud.
Check the security: Make sure that the exchange offers two-factor authentication (2FA), data encryption and other security measures.
Regulation and licenses: Preference should be given to exchanges that are regulated by the relevant authorities and have licenses to operate.
Tip: Popular exchanges such as Binance, Coinbase or Kraken have a good reputation and a high degree of user protection.
2. Check wallet addresses and transactions
One of the most common forms of fraud is the substitution of a wallet address during a transaction. Scammers can replace the address in the clipboard with their own, and if you do not notice the substitution, the funds will go to their wallet.
How to avoid this problem:
Always double-check the address: Before sending funds, make sure that the recipient’s address exactly matches the one you copied or entered manually.
Use QR codes: If possible, scan the QR codes of wallet addresses, this will reduce the risk of error or substitution.
Install security software: Using antivirus software and special programs to protect the clipboard can help prevent address spoofing.
Tip: After entering the address manually or copying, make sure that the first and last characters of the address match the expected ones.
3. Beware of phishing attacks
Phishing is a deception method in which scammers try to gain access to your accounts by posing as official services or companies. Phishing attacks can be either via email or through fake websites.
How to protect yourself from phishing:
Do not click on suspicious links: Never click on links from suspicious emails or messages, even if they seem official.
Check the website URL: Make sure that you are on the official website of the exchange or wallet. Fraudulent websites often use domains that are very similar to the original ones.
Activate two-factor authentication (2FA): This makes it much more difficult for scammers to access your accounts, even if they get hold of your username and password.
Tip: Use password managers that automatically fill in passwords only on verified and saved sites.
4. Avoid direct transactions with strangers
Selling cryptocurrency directly to individuals can be risky, especially if you don’t know the counterparty personally. Scammers can offer attractive terms, but then disappear with your funds or provide fake payments.
How to reduce risks:
Use Escrow services: Escrow services act as a third party that holds funds until the transaction is completed. This protects both sides from fraud.
Trade on the stock exchange: Exchanges provide automatic transactions between buyers and sellers, minimizing the risk of fraud.
Check the counterparty’s reputation: If you still decide to conduct a transaction directly, try to get as much information about the counterparty as possible and make sure of its reliability.
Tip: If you are offered terms that seem too good, it may be a sign of fraud.
5. Do not share personal data with outsiders
Scammers can use various social engineering techniques to gain access to your personal data, such as usernames, passwords, or wallet keys. Never share this data with unauthorized persons.
What you need to remember:
Exchanges and wallets never ask for passwords or keys: If someone claims that they need to know your password or key to access your account, this is a scam.
Do not publish data about your cryptocurrency assets on social networks: This may attract the attention of scammers.
Use strong passwords and change them regularly: Strong passwords should consist of long combinations of letters, numbers and symbols.
Tip: Keep your private keys and passwords in a safe place, preferably offline, to eliminate the possibility of remote access.
6. Check the receipt of funds before confirming the transaction
Before confirming the completion of the transaction or transferring crypto assets, make sure that the money or other cryptocurrency has actually entered your account. Some scammers may try to convince you to send assets before completing the payment.
What should be done:
Verify blockchain transactions: Use blockchain explorers to verify the receipt of funds. If you are selling bitcoins, make sure that the transaction has multiple confirmations on the network.
Beware of fake screenshots: Scammers can send you fake screenshots confirming the sending of funds. Always check your account balance in person.
Tip: When selling large amounts, wait for several confirmations of the transaction in the blockchain before considering the transaction completed.
7. Be attentive to course manipulations
Scammers can use various methods to manipulate the exchange rate of cryptocurrencies on low-liquidity markets or platforms. They may artificially inflate or lower prices to lure you into a bad deal.
How to avoid manipulation:
Compare rates on multiple platforms: Before selling crypto assets, make sure that the rate on your chosen platform corresponds to the market price.
Avoid low-liquidity exchanges: It may be easier to manipulate rates on small or new platforms. Use exchanges with high trading volume and liquidity.
Do not react to sudden price fluctuations: Sudden changes in the exchange rate may be the result of manipulation. Don’t make hasty decisions, let the market stabilize.
Tip: Use market and limit orders to control the selling price and protect against manipulation.
8. Update the software regularly
Keeping your software up to date is an important measure to protect against vulnerabilities that can be exploited by fraudsters.
What needs to be updated:
Cryptocurrencies: Update the software of your cryptocurrencies to the latest versions to protect against new threats.
Antivirus software and security systems: Regularly update antivirus and security programs to prevent hacking or infection with viruses.
Operating system and browsers: Outdated versions of operating systems and browsers may contain vulnerabilities that will allow fraudsters to gain access to your data.
Tip: Set up automatic updates on all devices to always use the latest software versions.