1. Research: Research the currency and the trading platform you are using to ensure it is legitimate. Be aware of common symptoms of fraud such as pressure to quickly invest, claims of guaranteed profits and unsolicited offers from unknown sources.
2. Secure your wallet: Make sure to use a secure cryptocurrency wallet to store your investments. Also, use two-factor authentication and store your keys offline on a reliable device.
3. Check the source code: Don’t be afraid to dive into the source code of the coin or token you’re buying. Make sure there is transparency as to what the project is attempting to achieve and that the code looks solid.
4. Monitor the market: Keep an eye on markets and prices, as they can quickly become volatile. If you suspect fraud, contact authorities immediately.
5. Use trusted exchanges: Only purchase coins and tokens from trusted exchanges. Make sure to check reviews and ratings to avoid scams like pump-and-dump schemes.