How Not To Get Scammed in a Bull Market
Hello Boarders,
My name is Victoria, a blockchain writer and educator, and I’m also a contributor to Compass by Onboard.
In the past few weeks, I’ve received many DMs asking for guidance on starting their journey in crypto. Believe me, I’m not exaggerating when I tell you the number far exceeds those I’ve gotten over the last two years. And it’s not hard to guess exactly why: it’s the numbers - it's the Bull run.
If you don’t know, the Bull run is simply a period in the crypto market when the prices of cryptocurrencies are on the rise, and during this time, we see new all-time highs. For example, Bitcoin has exceeded its all-time high of $69,000 to over $72,000, a mark many believe signals the beginning of the bull run. Similarly, most altcoins (cryptocurrencies apart from Bitcoin) are following the same trend.
During the bull run, two major things happen. First, as I mentioned earlier, we see a rise in the prices of cryptocurrencies and new all-time highs; basically, the money starts flowing. Second, there is increased media coverage of “positive” (money-related) news about crypto. Posts about someone investing $100 in a coin and waking up a millionaire and most times readers get curious about how they can also make this money. Immediately, they start reaching out to all their crypto friends or even turn to Google for information on how to start.
So, I won’t be overreaching if I conclude that what attracts both new users and investors during the bull run is the promise of substantial returns. The downside to this is that coming in with that mindset exposes them to several scams and security breaches—which are also known to be on the rise during a bull run.
If you are reading this and trying to navigate your way in the Bull market, it’s your lucky day. I’m penning this down with you in mind, to help you navigate this period seamlessly.
Let’s get to it.
Key things you need to know when starting out:
Don’t download any wallets from Google (search engine).
I always mention this point first because I wish someone had told me when I got into crypto. Here’s the gist: Gearing toward the 2021 bull run, I spoke to a friend about getting into Crypto, although as a career, but I was also looking to invest and make some money. He gave me pointers and advised I buy a certain coin. Immediately, I opened my laptop, went on Google, and downloaded MetaMask. I bought $100 through him, and it was sent to my wallet. I received the money, and when I tried to connect to the site he sent to get the coin, I saw the money leave my account.
In my life, I had never been so confused. I called for help from different people, but nothing could be done because I downloaded a compromised wallet, which was not the original MetaMask. So, I always make this my first point because I wish someone had told me.
The saddest part of this was the price of the coin went up significantly in the 2021 Bull run and made a lot of crypto millionaires.
I’ve told you where not to download; I’m sure you’re thinking, so how exactly do I get a wallet? The list below is my top recommendation depending on what device you use:
If you use an Android phone - PlayStore
If you use an iPhone - App Store
And if it's a Chrome extension - Chrome Web Store or the web store of your browser.
It’s important I mention this: Don’t give your seed phrase or private key to anyone.
Anyone with access to your seed phrase or private key has as much access to the wallet as you. Meaning they can perform any transaction and maybe even defraud you, so keep your keys safe.
Be very careful of the links you click or connect to.
In crypto, it is so important to be careful of the links you connect your wallet to because connecting to the wrong link can be super detrimental to your investment. I added "click" deliberately because it’s not only about the pages you connect to.
Once you actively interact with different projects, you will randomly get scam NFTs and tokens in your wallet, so if you don't know the source, don't interact with it. For example, I currently have a a token that was airdropped into my wallet, but I will never touch it because I can’t trace exactly how I got it, and I understand that sending it or attempting to convert it may compromise my wallet.
Another mistake you can make regarding links is connecting to links shared on Twitter without taking extra time to research if it's the official page of the project that shared the link. You always have to verify because there are hundreds of fake pages for every project. Always take it that the extra time you will spend confirming is not negotiable, so do your research.
The craziest part of this is it can happen to anybody. I’ve seen crypto OGs tweet about their wallet being compromised as a result of minor mistakes. Never underestimate how important being careful is; better safe than sorry.
Do not fall prey to FOMO (Fear of Missing Out), always DYOR (Do Your Own Research).
DYOR is probably the most common crypto slang, and I also think it's the most important. The same way you are looking to make money, there are also those looking to do it fraudulently by creating scam projects, so make sure to do your research so your greed, and most times your fear of missing out, does not end up making you their exit liquidity.
Beyond saving you from scam projects, doing your research will also help you find your footing in the new industry you are coming into. That way, you can make informed decisions.
There are several points I can mention, but I think these three are foundational tips that will guide and help you navigate whatever challenges you may come across. I wish you all the best in your crypto journey.
Talk to you soon.
DISCLAIMER: This newsletter is for educational purposes only and is not investment advice or a solicitation to buy or sell any assets. Please do your own research before making any investment decisions