Crypto exchange got you excited? You SHOULD know these safety tips

Cryptocurrencies are all the hype these days, with investors willing to earn profits from these NFTs. With more people investing in cryptos, crypto exchange is quickly becoming a thing for earning profits. And as with regular currency, there are scamsters waiting to hack into people's greed and dupe them of their prized possessions.

Hence, if you are willing to make crypto exchanges, you need to be cautious of several scams going around. In markets such as India where the government has not mandated any anti-money laundering and counter terror financing norms, these early years of crypto's existence need to be dealt with cautiously.

Crypto exchange: Here's what you need to keep in mind

With no formal laws dictating cryptocurrency yet, there's only caution and presence of mind to rely on. Scamsters are always after a person's greed and in the process, will try to come up with some of the most tempting exchange deals you will see online.

Discussing with The Mint, Shashi Prakash Jha, head of legal and compliance at WazirX has asked crypto investors to stay safe from unrealistic schemes and offers. Crypto, like any money, does not multiply overnight and hence, if a scheme is promising unparalleled gains in the matter of a few hours as a gesture of goodwill, you should ideally stay away.

Sometimes, investors may often see a tempting offer posted from famous people or celebrities. It is important to learn about the validity of the post as hackers often pretend to double crypto value upon minor investment.

Jha also added, “One more way to identify a scam token is if scammers promising crypto giveaways ask investors to send them a few coins for validation of address. Another way is hacked or spoofed social media handles of well-known personalities promising instant doubling of crypto sent."

It is also suggested that investors should examine whitepapers, background of the traders, and their reviews by other people, if available.