Cryptocurrency Scams

Cryptocurrency And Scams: How To Protect Yourself 

Monday 21st Mar 2022 |

Do you want to reap maximum benefits out of your investment…and fast too??  Then we have only one answer for you: Go Crypto!!!  CryptoCurrency provides an extremely profitable return on investment, provided, you need to have your eyes opened.  

Any type of personal failure or some lacking may end up with losing the entire money.  Therefore it could be said that Investment in Crypto is risky. But if judiciously played upon, it is extremely rewarding that’s for sure with the Cryptos.  

Crypto Currencies And Types  

Crypto Currencies, are broadly defined, as actually digital tokens that are found in decentralized ledgers. Just because it is decentralized in its network operations, the direct control and regulations of the government do not get involved here at all.  

Under this, the buying and selling of e-Assets are made right under some regulated networks. This acts to provide an extremely good platform for buying and selling Crypto. You could know more about this using  bitcoin billionaire app.   

Cryptos are classified into four different types and they include DeFi, NFTs, Utility tokens, Stor of Value tokens.  

Risks Associated With Cryptocurrencies  

The Crypto Currencies as you all know are highly rewarding. But along with high returns, there are immense risks involved with these. Firstly, your entrance is extremely narrow in the Crypto World but exit? It extremely matters, to say the least.  

Secondly, Trading on Crypto Currencies??  This denotes, you are operating with assets that are extremely Illiquid, Intangible, and uninsured. Thirdly, Mark to Market is one of the common Risks associated with trading on Cryptos.   

Thirdly, one might get false footing by entangling oneself under some kind of scam. This is getting recurrent with time. Therefore one needs to be highly prepared to learn preventive measures, that could provide safety and security to the new investors.  

Some Of The Most Common Crypto Currency Scams 

The brightest and wide expansive risk associated with Cryptos is Trending Schemes and Associated Scams.  This includes Money Laundering Scams, Fake Investment Scams, Romance Scams, Black Marketing (Human Trafficking, Organ Trafficking), and Blackmailing Scams. The scams mentioned are extremely dangerous because they emanate from the volatility of the International Trading Market. Therefore the new investors need to be highly watchful so that their hard-earned money does not fall under the aforementioned scams.  Falling trap to scams might cost with loosing upon the entire money invested by an individual.  Therefore, it is well understood that losses would prove to be detrimental to exploring  business directions through the investment of hard-earned money.  

Facts And Data On Cryptocurrency Scams 

It is found through Statistica that Crypto Currency Scams are getting immensely wide with time. Using sophisticated technology, scammers are frauding the investors, especially the newcomers. Some facts would vindicate the truth.  

  • Cryptocurrency scams have increased 12% in the year 2020 compared to the preceding year. 
  • Another striking fact is that the traders who are already operating in the competitive market for around 30 years are scammed. 
  • Statistical data indicate that the median individual loss on cryptocurrencies monetarily aggregates around $1900. 
  • This is a 1000 % increase in the year 2020 compared to the year 2019.  

Protecting Oneself From Cryptocurrency Scams  

So, I tell you not to be worried. There are both simple and Technical ways through which you can save your investments in Cryptocurrency. 

Do Not Trust Anyone 

You need to be extremely cautious with everyone and anyone that established contact with you through emails. It is not that you simply ignore them, but you need to be extremely cautious in dealing with them.  

Securing The Crypto Wallets  

If you are controlling your own cryptocurrencies, then do not act to trust anyone with their identity. It needs to be understood that in Crypto Currencies trading, you will never share the seed phases and private keys with any one of these. 

Multi-Factor Authentication  

Multi-Factor Authentications are a great way in securing your hard-earned money and keeping away fraudsters. This kind of operation provides extra safety and security  to your investments.  

Rejection Of Fee Offers  

Whenever you see offers relating to upfront fees, reject it straight away. This could be understood that any kind of upfront fees could bring in trouble for the investors involved. This is because investment opportunities under this are filled with scams.  Apart from this, you need to report the Frauds in cites like The FTC: Report Frauds.FTC. Gov and The USA Securities and Exchange Commissions (Sec. Gov). 

Conclusion 

It could be concluded that one investing in Crypto Currencies are extremely profitable ventures in the coming times. This trading via decentralized networks keeps oneself aloof from any kind of Government Control.  Notwithstanding the high chances of profit-making, there are risks involved in trading in CryptoCurrencies.  They include Money Laundering Scams, Fake Investment Scams, Romance Scams, and others. These need to be avoided through self-control and a little bit of sensibility.  

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