Fake Crypto Apps Are On The Rise: How To Avoid Crypto Wallet Scams?

Fake cryptocurrency apps are on the rise, and they are designed to scam users out of their money. It can be challenging to differentiate between a real cryptocurrency wallet from a fake wallet because there is no authoritative source where you can find reviews.

Cryptocurrency has been around for a while, but the way we interact with it is constantly changing. The cryptocurrency market was worth $100 billion in January of 2018, and that number continues to grow exponentially as more people purchase cryptocurrencies. After you’ve done in-depth research on which cryptos are safe for investment, it only makes sense that you protect your hard-earned cash!

That’s what we’re here for! In this article, we’ll give you valuable tips on how to tell whether a crypto app is real or fake and how to choose the safest cryptocurrency wallets to avoid crypto scams.

Do Your Research Before Starting

Make sure you download your apps from a trusted site. And while we’re on the topic of legitimate apps, make sure you’re downloading your apps from App or Google Store; make sure you’re downloading the real thing! Check reviews and comments online about the wallet before you download it or share any information with them. 

Choose wallets that have been around longer than others on the market -- this will ensure their legitimacy, as these cryptocurrency scam websites often come and go quickly because of how fast cryptocurrency is changing! 

Start From The Keys: Protect Your Cryptokeys

Your cryptocurrency keys are what keeps your coins yours. If a hacker is able to get their hands on these keys, then they can easily steal your cryptocurrency. There are two types of crypto wallets: hot and cold ones, both with their own set of pros and cons.

Hot Wallets

Hot wallets sit directly on an internet-connected device such as a smartphone or computer, which means that all of your information could be stored more securely in them than keeping it in an exchange (remember: not your keys, not your crypto). The downside of hot wallets is that since it’s connected to the internet, it’s susceptible to hacking. Losing your phone or computer also means that your crypto can fall into the wrong hands.

Cold Wallets

Cold wallets are a type of offline storage method, meaning they are not connected to the internet. The most common type of cold wallet is a hardware wallet: a portable device that only needs to be attached to a computer when it’s needed. A hardware wallet is one of the safest wallets for cryptocurrency because it has no connection to the internet, so hackers and other cryptocurrency thieves cannot just.

If you do decide to go use cold wallets to keep your crypto safe, remember: do not lose your seed phrase. A seed phrase is a series of words that come with your hardware wallet, which will allow you to recover its contents should the device be lost or stolen. Write the seed phrase down and keep it in a secure secret place.

Be On The Lookout: Always Check Your Links

Hot wallets are very easy to fake: thieves often set up fake wallets that look just like reputable wallets. Once an unsuspecting victim downloads this fake wallet and transfers their crypto to it, it’s gone. 

If you’re thinking of downloading and using a hot wallet to secure your crypto, keep this in mind. Examine the link that led you to the exact app that you’re thinking of using. 

Thieves also send phishing emails to unsuspecting victims. These emails might come in the form of a security alert from your exchange saying that there's been an unauthorized sign-in to your account or an email offering free crypto. These emails might ask you to click on a link to “authorize your account,” “fill out a survey,” or “claim your free crypto.”

This link will lead to a convincing carbon copy of a legitimate website, asking you to input personal information such as your private keys or login credentials. Do not fall for this one! Always remember: no reputable platform will ask for your personal information. Make sure that you check the links in your email -- if you need to login into your account, type in the name of the website instead of clicking on a link. 

Using Strong Password Is One Of The Keys

When setting up any cryptocurrency-related account (or any account, for that matter), it’s important to use an original password with at least 12 characters. Avoid using passwords that you’ve used for other accounts. Make your passwords more difficult to crack by using upper and lower-case letters, symbols, and numbers.

Other Security Precautions

Backup Digital Wallet

The most crucial step a cryptocurrency investor can take to avoid crypto wallet scams is to back up their digital wallet. This means that users should have an offline copy of the currency's private keys and recovery phrases in case they are ever lost, stolen, or damaged. The key takeaway here is for investors not to keep all eggs in one basket by using just one wallet. Distribute your cryptocurrencies across multiple wallets.

Think About Two-factor Authentication

An additional way to protect cryptocurrency assets is to use two-factor authentication. This can be done via SMS text message or a mobile application that generates an authorization code for login purposes, which helps ensure the account holder and only the account holder has access.

Use Secure Internet Connection

Whenever you log in to any cryptocurrency exchange or transfer money to your wallet, it’s essential to do so while connected to secure WiFi. Do not access your cryptocurrency wallets while connected to public WiFi! There are many ways through which malicious entities can steal your data. For example, some thieves set up fake WiFi hotspots to record and monitor all of your activities.

Do not do private financial or business transactions on public WiFi. If you need to, make sure you use a virtual private network (VPN).

Closure

Lastly, don’t forget to monitor your transactions frequently so that you can detect any out-of-the-ordinary activity on your cryptocurrency accounts.

While it’s true that there are lots of fake crypto apps out there, we hope this article has provided you with some food for thought when choosing the safest crypto wallets to avoid scams!