How to Avoid NFT Scams
NFTs are relatively new assets that have become increasingly popular these days. That’s why it’s easier than ever to fall for scams. According to reports, last year a whopping $14 billion was stolen by scammers, mainly because of growing interest around crypto and NFTs.
Here are Some Ways to Avoid NFT scams:
Never Reveal Your Private Keys
The most valuable thing that crooks and hackers attempt to steal is the private key to your wallet. If they get access to this, they could log into your wallet from their device and transfer all your NFTs to their wallet. Once your crypto assets are removed from your wallet, there is no way to recover them.
Just remember, never share private keys. If you want to send or receive an NFT, what you share is a public wallet address/key.
Bonus Tip: Keep a backup copy of your private keys and passwords. It’s also a good idea to write them down on paper and put them somewhere extremely safe. Losing your wallet keys, means losing access to your NTF’s and cryptocurrency forever.
Look Closely at Website URLs
Cyber thieves often trick people by creating sites with similar web addresses. These are called phishing or spoof websites, and they are very dangerous. They often look just like the real site you are trying to visit. Their sole purpose is to steal your information and money.
Make sure you are spelling the website correctly. Watch out when using search engines to find a website. Other fake websites will often show up in search results.
Bonus Tip: After you are sure you are on the correct website, bookmark the site. Using bookmarks instead of typing a web address or using search engines will help prevent you from falling victim to these scams.
Beware of Rug-Pulls
One of the best ways to avoid fraud is to thoroughly research any project you intend to invest in. Rug pulls are a common trick in the crypto space. In a “rug pull”, the project’s team or a small group of investors build hype around the project to drive up prices. Once the price gets overinflated and plenty of investors have poured into that project, they sell off all of their holdings in the project. This is also known as a pump and dump.
Only Trade On Reputable Exchanges, or with Trusted Contacts
The best way to make safe transactions is to use a reputable NFT exchange. Private transactions should only be made with people you know and trust. You might send someone your digital asset with the condition of payment upon delivery. And instead, the person does not pay you and keeps your NFT. Your NFT will be lost forever.
Conclusion
There are so many scammers in the world today, looking to get something for nothing. You need to be informed and cautious, so you can stay safe when venturing into the NFT space.
