Risks when exchanging cryptocurrency: how to avoid them?

Cryptocurrency exchange can be a risky endeavor for both new and experienced traders. In this material we will talk about the most well-known and common methods of deceiving users, how to avoid them, and how express cryptocurrency exchanger Quickex keeps your assets safe.

The most common types of fraud

Scammers often use a variety of tactics to trick people into sending them USDT, for example, without sending any other currency in return. Some of the common scams to watch out for include fake exchanges, phishing attacks, and social engineering attacks.

Fake exchanges are websites or apps that claim to allow you to exchange one currency for another, but are actually created by scammers to steal your money. They often have similar user interfaces and site designs to legitimate exchanges, making them difficult to differentiate.

Phishing scams are another common tactic used by scammers. In a phishing scam, scammers send emails or messages pretending to be from official exchanges and ask you to provide login credentials or personal information. With this data, they can access your account and steal your funds.

Social engineering attacks are a type of scam in which scammers manipulate people into giving money “voluntarily.” For example, scammers may pose as customer service representatives of a legitimate exchange and ask you to provide your credentials or transfer your funds to another wallet based on “security reasons.”

Even the best crypto exchanges can be hacked

There is a misconception that scammers live exclusively on small, unpopular platforms that only a beginner who knows nothing about crypto exchange could stumble upon. However, large exchanges are becoming an increasingly popular target for hackers for a number of reasons.

Firstly, such platforms hold huge amounts of cryptocurrency, making them an attractive target for scammers. Hackers seek to gain access to user accounts or exchange systems to gain access to these funds.

Secondly, the anonymity provided by the use of cryptocurrencies allows fraudsters to evade prosecution. They can use various methods to gain access to user accounts and steal their cryptocurrency.

Moreover, with the growing popularity of cryptocurrency and the increase in the number of users on exchangers, scammers see an opportunity to gain access to more potential victims. They can exploit vulnerabilities in the security systems of exchangers or carry out large-scale attacks on their infrastructure.

Unfortunately, even large and well-known exchangers do not always have the proper level of security. They may encounter new types of attacks or vulnerabilities that fraudsters discover and exploit. In such cases, users of exchangers become victims of theft of their funds.

In order not to run into scammers and not to part with your crypto assets, we recommend that you follow a few simple and quite feasible rules, which are listed later in the post.

How to keep your cryptocurrency safe?

Here are some simple tips to help you avoid trouble when exchanging cryptocurrency:

• Use Reliable and Secure Cryptocurrency Exchanges: Be sure to do your research and use a reputable exchange that has a good reputation for security.

• Ensure the safety of your private keys. They give access to your assets, so it's important to keep them safe.

• Use two-factor authentication: Many exchanges offer two-factor authentication, which can provide an additional layer of security.

• Beware of Phishing Scams: Be wary of unsolicited emails or messages that ask for your personal information or login credentials.

• Diversify your investment portfolio: By spreading your funds across different cryptocurrencies, you minimize your risk.

• Keep your software and devices up to date: Make sure your device and software are always updated to the latest version. This will ensure maximum safety.

• Avoid storing large amounts of cryptocurrencies on an exchange: Store only the amount you need for trading, and withdraw the rest to a hardware wallet or cold storage.

• Use Quickex. Here you can always safely and quickly exchange your crypto assets without any problems. In addition to the fact that the platform is safe for users, it also offers many useful and pleasant bonuses: minimal commissions, a wide selection of trading pairs, as well as the ability to monitor the exchange rates of the currencies you are interested in in real time directly on the website - all this is available not only in the desktop, but also in the mobile version of the site.

Conclusion

Security is a critical aspect that must be taken into account when using a cryptocurrency exchanger. Take care of your funds and enable two-factor authentication, research the exchange before sending funds there - these and other simple steps that we told you about in this article will allow you to preserve and increase your assets.