Did you know that millions of dollars are being lost every day, due to cryptocurrency scams?
This shocking information is something you should always keep in mind, especially if you’re a newbie in the field or in other words – if you’re just getting started with crypto trading.
But what is it about crypto scams? Is it any different than all the other financial scams? Well, not really. The only difference is the fact that although cryptocurrencies have been around for more than a decade, they’ve reached their peak just recently, especially when speaking of Bitcoin.
This is great news on one hand, since the expansion of popularity and the spectacular increase in value of this cryptocurrency has initiated a chain of economical events, and is shaping our reality in completely new ways.
But on the other hand, it has opened Pandora’s box, which means that there are new risks, new ways to get scammed, and most certainly – more and more people who are willing to get creative and invest their time and resources to develop fraudulent software and products to gain financial benefits.
However, it’s not something that should scare you. As for everything in life, if you’re not willing to thoroughly explore and research something you’re interested in or you’re indulging in, you can get exposed to many risks and problems. The same goes for cryptocurrencies.
Table of Contents
Constant Learning is The Key to Success
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With the creation of the first cryptocurrencies, Bitcoin, 12 years ago, no one could have dreamed about using decentralized money, money that doesn’t physically exist anywhere except in your digital wallet. We couldn’t have dreamed about using only our cellphones to send and receive money, make investments and profits, travel and connect with others.
Today, there are more than 1,500 cryptocurrencies on the market. The biggest crypto investors aspire to diversify their crypto portfolios, and they are making predictions in crypto investing, smart and patient decisions, and they are learning new things and adapting to the fast-paced environment on a daily basis. This is important to know, because this approach is crucial when it comes to a volatile market like this. And a market with potential risks of getting scammed.
What Should I know Before I start Investing
Cryptocurrencies are not being controlled by third parties. This means that there is no authority nor central control such as governmental institutions or organizations in charge of your money. The purpose of cryptocurrencies is to allow people who don’t have access to any financial institution due to their location, or some personal issue, to become a financially stable member of society, without the need to open a bank account. Cryptocurrencies are based on the blockchain system, which is specifically designed to regulate itself. Simply put, every transaction that’s being made is being written and becomes transparent to all the users in the system. However, there still are certain things you should be careful about. Due to the fact that there’s no central authority, your money isn’t backed up in a traditional way that we’ve all been used to. You’re the only person responsible for your money, your coins, your keys (passwords), and finally, you’re the only person to decide which platforms to use, who to contact, who to collaborate with and how much to invest.
What Are The Ways You Can Get Scammed?
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If you’re interested in cryptocurrencies, or you’re already investing, there are several ways you can experience a scam, without even knowing about it. Well, until you figure out you have lost your money. Scams are something that will always be present in our lives. But it seems like crypto scams are on the rise. That said, there have been numerous reports about email blackmail scams, in which scammers tried to intimidate people, telling them that they have sensitive info about them, and that they will have it leaked unless crypto owners send them payments in cryptocurrencies.
Luckily, this is a serious crime, so the first thing you should do is to contact the authorities. Other than that, there are chain letters that can try to suck you into a scheme where you need to pay in crypto to get rewarded (and you never do), digital theft, hacking, phishing and finally, using fake cryptocurrency exchanges (trading apps).
How to Tell Good from Bad Crypto Apps
There are several criteria you should consider when choosing an exchange platform. Exchange apps allow you to buy and sell cryptocurrencies – to do crypto trading. Investors want to acquire coins when their price drops, in order to wait for their value to spike. To buy a certain amount of Bitcoin, Dogecoin or any other crypto, you need to use your fiat money. Choosing the right platform for trading digital assets is crucial since it’s the only way to save your money and your info. But how can you distinguish the good ones from the bad ones?
1. Research, research, research.
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The first thing you need to do if you want to make sure you’re using the right platform is to research as much as you can about it. The more time you invest in research, the better. The goal is to find out if the exchange platform is legitimate or not. By reading the small letters on the websites of your choice, the reviews and other people’s experiences, the requirements they have and the fees you have to pay, you can get a good sense of what the trading app is about.
2. There shouldn’t be any pressure
If you’re being harassed to make an investment, recharge your digital wallet, pay certain fees or invest more money with a promised bigger return – you’ve likely chosen a bad trading app or platform. If the customer service tries to contact you much more often than it’s appropriate, it’s also a major red flag that you should pay attention to.
3. Don’t accept investing advice
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Trading apps should work as a medium between you and the crypto marketplace. They are also a digital place where you virtually store your money – cryptocurrencies and everything you do, either making investment decisions, buying or selling, should be your choice and yours only. If you receive calls or offers from people who introduce themselves as financial experts and they have access to your trading account, run as fast as you can, because they just want to make you put in even more of your money.
4. Abnormal fees are a clear indicator
The sign-up or registration fees should be either low or they shouldn’t exist at all. If you choose a trading app and right at the very beginning, you are being asked to pay unusually high fees, take this as a sign to stop right there and not give out your credit card info nor other sensitive info.
5. Compare
Don’t hesitate to register to several crypto exchanges. Compare the terms and conditions, requirements and policies, as well as the user interface, mobile-friendliness etc. You can compare trading apps even before you register, in order to pick the right one. There are numerous ratings on the internet, you can read blogs and articles on renowned websites, listen to podcasts, watch YouTube videos and other sources of info, so you can make the right choice.
For more info check https://bitiq.app/.
