It’s no secret that Singapore is one of the wealthiest nations in the APAC region. With its developed economy and high average GDP per capita, this nation’s people are among the most financially savvy in the world.
That said, not a single trader is completely immune to the threat of being duped by online fraudsters, Singaporeans included.
In fact, Singaporeans are more likely to be the primary target of such scams and fraud attempts due to their more favourable economic position relative to the rest of the world.
Having said that, every Singaporean crypto investor needs to know how to protect their digital assets. This helps them prevent falling into traps that phishers and scammers may lay to unlawfully get hold of their tokens.
If you want to protect yourself from these cyber threats, you’re in the right place. Let’s explore the common scams in the crypto market. We’ll also detail ways to buy and sell crypto in Singapore safely.
Let’s jump right into it.
6 Ways to Avoid Crypto Scams in Singapore
To ensure that your crypto doesn’t fall into the wrong hands, it’s essential to be proactive with how you manage your crypto holdings.
Here are six ways you can avoid encountering crypto scams that could dry out your funds.
- Trade in Licensed Exchanges
There are many pockets of the internet where a large volume of crypto is stored. Unfortunately, a handful of these places uphold the bare minimum when it comes to meeting strict security protocols and high regulatory standards.
Some traders may use these crypto platforms to store or manage their crypto, unaware of the danger of them shutting down due to crime, going bankrupt, or falling victim to cyberattacks.
Users who have stored money in these platforms won’t get any legal protection if these websites get hacked or shut down by authorities, which essentially spells doom for their money forever, as it disappears or gets seized by the authorities.
If you want to tread on the safe side, it’s best to conduct trades in exclusively licensed exchanges.
In Singapore, stick with exchanges licensed by the Monetary Authority of Singapore (MAS). These exchanges meet security, compliance, and user protection standards to help you reduce the risk of encountering fraud and sudden platform shutdowns.
There are a few notable crypto platforms that have received regulatory approval to operate in Singapore, such as Coinbase and Independent Reserve. Either of these platforms is excellent for beginner traders thanks to their user-friendly interface, extensive list of tokens, and high daily market volume.
Regardless, if you’re looking to partner with the best crypto exchange in Singapore, be sure to pick one that’s MAS-approved and optimal for token diversity.
- Double Check Website URLS
A common scam in the crypto scene, and the Internet in general, is fake websites mimicking actual websites.
Many malicious individuals set up fake websites that closely resemble genuine websites, compelling people who wouldn’t know any better to fill in sensitive information. These unscrupulous individuals will then steal this information and potentially use it for their own selfish gain.
To ensure that you won’t fall victim to these phishing sites, always double-check the URL of the website you’re visiting. Look for any typos, extra characters, or domains. Moreover, if people send you URLs of these exchange platforms in your DMs, be very cautious before clicking them.
By taking the time to check the URLs of the websites you click, you could potentially protect yourself from devastating losses.
- Don’t Trust Unsolicited Messages
Singaporeans are a chronically online folk, especially if they’re even remotely interested in crypto. It’s not uncommon for them to have a slew of social media and messaging apps like Discord, Viber, or Instagram.
Over time, some anonymous accounts may stumble across these accounts and send users unsolicited messages, often with the promise of something beneficial and wealth-adding.
Over 99% of the time, these are scam artists trying to get a quick buck out of you. They’re more than willing to spend some time leading you on with fake promises of wealth, whether it’s through access to “always accurate” trading bots or guaranteed returns, only to siphon your funds dry when you’ve fallen for their trap.
As much as possible, strive to avoid contact with these people. Block and give them the cold shoulder as they’re nothing but bad news.
- Don’t Share Your Account Details
This point is a given, but it can’t be stressed enough. Refrain from putting your login credentials anywhere in public.
Given the financial nature of cryptocurrencies, your crypto exchange login information should be as safeguarded as your bank account. Sharing your username, password, or anything sensitive like your seed phrase could put your funds (and identity) at serious risk.
Moreover, be wary of any scammers trying to trick you into giving away account access. Some people may play the role of advisors or customer service agents, only to be in it for their money.
As such, remain tight-lipped when it comes to matters about your crypto platform login information. You should also refrain from sending out screenshots or pictures of your login details to ensure maximum security.
- Enable Two-Factor Authentication
A simple way to keep your funds safe is by augmenting the security of your crypto exchange account by enabling two-factor authentication, or 2FA.
With 2FA, you’ll need to fulfil a second form of verification through an app like Google Authenticator. This level of security makes it harder for hackers to penetrate your account, even if they do get hold of your password and username.
Most reputable exchanges in Singapore offer 2FA for their platforms to enhance user security. But don’t be complacent: choosing the right exchange also plays a big role in ensuring that your funds are protected and encrypted to avoid risks from a backdoor attack.
- Be Wary of AI Media
With the rapid advancement of artificial intelligence penetrating the mainstream, more unscrupulous individuals are finding ways to harness AI technology to their benefit.
One way that they’ve been doing this is by producing deepfake images or videos to promote scams disguised as rewards.
These deepfakes are so lifelike, it’s hard to tell immediately at a glance whether the endorser is real or not. In some cases, these deepfakes mimic the mouth movements, facial expressions, and voice cadence of celebrities or influencers.
In such cases, it’s essential to do your research before acting on whatever claims these endorsers are making. If something is too good to be true, chances are it’s because it is. Always verify accounts and use trusted websites before making any major financial decision.
How to Buy and Sell Crypto Safely
Now that you’ve been refreshed on the common scams in the world of crypto, you can then safely proceed to actually conduct trades with this digital asset.
To start buying and selling cryptocurrency, you would need to do the following:
- Choose a licensed crypto exchange in Singapore: Independent Reserve, Coinbase, and Kraken are some great platforms to start your crypto journey.
- Create an account: Sign up with an email and password. Submit personal information. Secure and verify your account.
- Deposit funds: You can wire SGD from your bank account directly to most licensed platforms in Singapore. You can also use PayNow or send money through a crypto wallet. Mind the exchange rates.
- Buy crypto: Once you have money in your account, navigate to the “Buy/Sell” page and select the crypto you want to buy. Enter an amount and confirm your buy order. Wait for the transaction to be complete, and it’ll be stored in your crypto exchange account.
- Sell crypto: To cash out and sell the crypto, specify how much of the crypto you’re selling and list it in the market for USDC, USDT, or any other cryptocurrency you want.
- Withdraw: Convert your cryptocurrency to SGD once again. Then, send it to your local bank account.
- Track your transactions: Use your platform’s dashboard to look at your trading history. It will be useful for tax purposes when the time comes.
As seen above, you don’t have to step outside of the platform to safely buy and sell cryptocurrency. By picking a MAS-regulated crypto exchange platform, you’ll have peace of mind knowing that your crypto buy-and-sell experience will be smooth sailing and secure.
Best of luck with your crypto trading journey!
