- Some of the biggest companies in the cryptocurrency industry have failed in the past year, including BlockFi, FTX, Celsius, and Voyager. The tremendous breach of trust for everyone involved has been the one commonality in all these failures.
- Because of their high risk and great volatility, cryptocurrencies are poor investments.
Cryptocurrency: What is it?
A sort of digital currency known as crypto typically only exists online. To purchase Bitcoin, one often uses one’s phone, computer, or a cryptocurrency ATM. Although there are other various types of cryptocurrencies and new ones are constantly being developed, Bitcoin and Ether are two of the most well-known cryptos.
How To Avoid Scams With Cryptocurrency
- Cryptocurrency payments are only requested by con artists. No trustworthy company will ask you to send cryptocurrencies in advance, neither to make a purchase nor to safeguard your funds. Always a swindle, that.
- Profits or large returns are only guaranteed by con artists. Don’t believe those who assure you that you may profit from the cryptocurrency markets rapidly and effortlessly.
- Never combine investment advice with online dating. It’s a fraud if someone you meet on a dating website or app asks you to send them cryptocurrency or wants to teach you how to invest in cryptocurrencies.
Recognize Frauds Involving Crypto
Scammers are still utilizing some tried-and-true scam techniques, but now they want to be paid in cryptocurrencies. One of the most common ways con artists get you to buy Bitcoin and deliver it to them is through investment scams. However, scammers also use other strategies, such as posing as companies, authorities, or a romantic interest.
Investing fraud
Investment scams frequently begin on social media or online dating apps or sites and promise that you can “make lots of money” with “zero risk.” Of course, these frauds might also begin with an unexpected text, email, or phone call. Additionally, crypto plays a crucial role in investment scams in that it can be used for both investments and payments.
Blackmail Con Games
Scammers may claim to have embarrassing or incriminating images, videos, or personal information about you in emails or letters delivered to your house. Then, if payment is not made to them in cryptocurrencies, they’ll use the method of threatening to make it a public issue. This is an illegal extortion attempt and an act of blackmail. Inform the FBI of it right away.
More centralized systems of holding assets indeed require some degree of institutional confidence, just as you trust your neighborhood bank to protect your income and retirement funds. Of course, that doesn’t imply that everyone should choose self-custody, which involves only trusting the code. For starters, not everyone possesses the technical know-how necessary to complete this task properly and safely.
It is difficult to escape some degree of dependence on trust because even those who succeed will frequently still find themselves using centralized institutions for trading and gaining access to cutting-edge products.
Conclusion
We can only hope that customers will consider more carefully the risks they are exposed to as a result of the recent terrible events in the crypto markets. Let’s hope that as cryptocurrency businesses continue to expand despite the current bear market, funding, and consumer demand will migrate to platforms and goods that provide customers with additional security beyond just urging them to “trust me” through the use of code or the law.
