HOW TO PROTECT YOURSELF FROM SCAMS WHILE YOU TRADE NFTs ON BINANCE?

As the popularity of NFTs continue to grow with many wealthy crypto investors buying into the opportunity to invest in NFTs or Non-fungible tokens, NFT SCAMS has become a major problem sufficing in the NFT crypto sphere and scaring many potential investors away from investing in crypto’s most lucrative sector.

The truth is just like every other sector of the crypto sphere, a world of NFT market places, NFT creators, depositors, collectors and NFT sales has come to stay and not even scammers can stop the flourishing gains in the NFT space.

It then becomes important to learn what NFTs are, and how to trade them safely; avoiding both petty and serious scams.

What is an NFT?

Simply put NFTs are Non-fungible tokens or crypto collectibles. They are a type of cryptographic token found on a blockchain that represents a unique and valuable asset. Unlike other crypto coins such as Bitcoin or even a crypto token like Shiba Inu, NFTs are not interchangeable and differ from each other with a clearly distinguishing factor.

They can be found as a tokenized version of the real-time property, asset or can even be a complete digital asset like a music album or an art work. The take away from this definition simply is no NFTs are entirely the same as another and have a unique identity one from the other, like the Crypto punks NFTs.

Now, we have an ideal knowledge of what an NFTs is, let us now focus on identifying some of the notable scams associated with NFTs and how to protect yourself from scams when trading NFTs on NFT marketplaces with BINANCE NFT MARKETPLACE as a case study.

HOW TO PROTECT YOURSELF FROM NOTABLE NFTs SCAM ON BINANCE NFT MARKET PLACE.

Someone once mentioned that the easiest way to identify good money from counterfeit is to clearly identify the characteristics of good money and then that would guide you from counterfeit money.

Sound pretty logical right; so, let’s consider identifying the scams on NFT marketplaces and then that can guide us to easily identify how to be safe from each of them.

¤ NFT MARKETPLACE DOUBLE (IMPERSONATION OF MARKETPLACE)

A major scam noticed is identical NFT market places but note no NFT market place can operate on two website domains; so, they are not the same. There is always something different. An example of this is a website domain mimic of rarible with the original marketplaces having a capital letter as the first word (Rarible). This website impersonating the original one is owned by scammers.

How can you protect yourself from this on Binance NFT market place?

º Connect using the Binance APP or correctly type www.binance.com/en/nft/market?ref=65177765 to connect to the Binance NFT marketplace.

º Do research to find out the prices of NFTs, so as to detect a false or ridiculous price of an NFT you wish to buy on a marketplace as impersonated marketplaces usually place a ridiculously low rate on NFTs so as to entice collectors to make purchases that will make them victims of NFT scams.

¤ IMPERSONATION OF NFT CREATORS

These days scammers have become skilled at copying people’s identity so well that on social media platforms, many well-known personalities have a disclaimer added to their name such as “I will not DM you first”.

These same activities are noticed on NFT marketplaces. Scammers impersonate original artists, mint other people’s art works or digital assets as theirs for a cheap fee so as to defraud naïve or greedy collectors.

How can you protect yourself from this on Binance NFT market place?

º Whatever NFT price is lower than the real price, it is a scam and as the saying goes-If it appears too good to be true then it is a scam.

º Do your own research (DYOR) before buying any NFT on Binance marketplace; that way, you will be careful to spot fake bids, fake NFTs, unverified artists or creators etc.

¤ IMPERSONATION OF NFT MARKETPLACE SUPPORT PERSONNEL

Some scammers resort to claiming to be a marketplace personnel reaching out to creators and collectors, trying to scam them off their assets or funds. They can claim to be doing a giveaway, a discount, or an NFT bidding etc all in the name to scam their victims. Be very careful.

How can you protect yourself from this on Binance NFT market place?

º Always remember that when someone reaches out to you first for any deal that seems too good to be true. DYOR.

º Always take time to verify who you are in contact with or what platform or channel you have been contacted from so as to be sure and do not let greed inform your decision.

Protecting your assets and funds is a very important concern. Some other details you need to pay attention to in order to be safe from scams generally; be it crypto currencies or NFTs include:

¤ Do NOT share your passwords and the security seed phrases of your wallets with anyone you do not trust,

¤ Consider using a very protected wallet such as Trezor but if you can’t afford it, make sure to have security protocols such as SMS and Google authentication in your wallets,

¤ Avoid becoming a victim of phishing by not clicking unverified or unsecured links and URLs,

¤ Always DYOR and run away from too-good-to-be-true giveaways and airdrops, if you have not done your research.

Finding a secure and scam-free NFT marketplace is as precious as finding a crypto gem that can 100x your investment. Binance NFT Marketplace is arguably one of the most secured NFT marketplaces owing to the fact that all its users are KYCed; both the collector, and the NFT creator or depositor. This good news is what makes an NFT enthusiast like me and other NFT investors to trade NFTs on Binance.

To kick start an NFT investment, you can start minting, buying and selling NFTs right away on Binance. Kindly Note that you will need to first create a verified Binance account by clicking here, and then KYC. If you already have a KYCed Binance account that you currently trade crypto with; simply go to www.binance.com/en/nft?ref=65177765 and start enjoying your proceeds from minting, buying and selling NFTs.

The thoughts in this article are clearly my personal opinion and should not be viewed as financial advice.

If you need more details on minting NFTs and how to start trading NFTs on Binance; consider reading this article on Binance Academy via https://academy.binance.com/en/articles/getting-started-with-the-binance-nft-marketplace?ref=65177765.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Nwankpa Kelechi

I am a crypto currency content creator and also a crypto trading training instructor. Feel free to reach me via email: kaycpompey@gmail.com.