Scams and Security measures in Web3
Web3 is still in its infancy in comparison to other technologies, and many people are unaware of its significance. While some people are jumping on the Web3 bandwagon, others are getting ripped off. Here are a few examples of Web3 scam, and tips for ensuring security.
Scams on Web3
There are several scams in Web 3, and knowing about them solves only 1% of the problem. Everyone in the Web3 space needs to be aware of these deceptive practices in order to avoid becoming a victim of any of them.
Wash Trading
You’ve probably heard of investors selling assets to themselves to attract prospective customers. That is wash trading. A trader sells assets to himself in order to attract customers by using his trade details as a liquidity trap.
Wash trading has been around for a while, and it’s good to be aware of it. When other traders buy into it, they suffer huge losses, and the platform used to carry out the scam loses trust for future transactions.
The sale of forged digital assets
The internet is a means of connecting with other people. Through this connection, people may be introduced to digital assets and duped into purchasing fake non-fungible tokens, lands, and houses, and these scammers will disappear with the money, leaving no traces behind.
How To Be Secure In Web3
Security in Web3 is a topic that should never be overlooked. The more security conscious you are the safer your digital assets.
DYOR: Do Your Own Research
If you’re on Web3, you’ve probably heard of DYOR. It is a common phrase. Before investing in any web3 project, conduct your own research, study the market, and examine the project details. Take your time understanding the project’s design. Examine the whitepaper to see if it is worth investing in. Doing your own research is one way to stay safe on the web.
Smart Contracts
Create your products with smart contracts. Smart contracts should be used to protect your company. If you’re new to Web3, smart contracts are a way for transactions to be executed on a blockchain. The parties involved agree on a project and establish certain rules that, if met by a certain time, will result in the execution of a specific activity.
Let’s say I agreed with you that if you invited 20 people to a group, I’d pay you $100. If you eventually invite 20 people to the group, you’ll receive a $100 alert. This is how smart contracts work. Smart contracts reduce the risk of fraud in Web3.
Consciousness
You must understand how things work and not assume that you will never be a victim of Web3 security issues. It is your responsibility to always live with the awareness that your Web3 accounts are yours to protect.
It is best to do your research before investing your money.
Have you ever been a victim of a Web3 scam?
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