A Scam, in the context of cryptocurrency trading, pertains to a fraudulent or deceptive digital coin or Initial Coin Offering.
It is easy to be scammed by entities in crypto trading industry. The first step in ensuring that one is not being deceived by digital exchange firms is checking if it is, in fact, powered by a blockchain. This is essential as this tells the trader that the firm does well by tracking detailed transaction data. Another thing that can be noted to verify the legitimacy of the firm is that if it has measures laid out for solving crypto trading challenges.
Scammers usually employ imposter websites. There are a lot of these fake websites that were setup to resemble the original website they had opted to copy. One way to easily check the validity of a crypto exchange website is to look at the security icon near the URL bar or the presence of the “https” in the address.
One may also watch out for fake mobile applications, false social media updates, and suspicious emails.