There are some things you need to know about cryptocurrency and scams.
If you”re confused about cryptos, for example Bitcoin, Litecoin and other, then this article will help You”re not the only one who Before you use or buy cryptocurrencies, know what makes them different from cash and other forms of payment, and how to spot scams or detect cryptocurrency accounts which should be compromised.
Before investing in cryptocurrency, you should learn about it.
Cryptocurrency is a digital currency
Cryptocurrencies are types of electronic currencies that exist only electronically. Unless you use services that lets you convert cryptocurrencies into physical currency, there is no physical coin or banknote.
Bitcoin is a type of cryptocurrency that can be exchanged online via a mobile phone or a laptop, and there are many different types of cryptocurrencies. New types are created on a continuous basis.
What is the purpose of cryptocurrency?
Cryptocurrency is used by people to making fast payments and to avoid transaction costs charged by traditional banks, or because it offers anonymity. Some people hold cryptocurrencies as investments, hoping they’ll go up in value.
How do you get crypto?
You can buy cryptocurrencies through an online exchange platforms, such as Coinbase. Some people earn cryptocurrencies by solving complex math puzzles using advanced computer equipment.
Where and how do I store cryptocurrencies?
A cryptocurrency wallet is a digital storage device that holds digital currency. It can be online, on a computer, or on an internal or external hard drive. If something surprising happens, you might”t be able to get your funds back. Because cryptocurrencies are usually transferred directly from user to user, there is often no intermediary to turn to if you experience a problem.
Cryptocurrencies are digital currencies that use cryptography for security.
There are some important differences between cryptocurrency compared and traditional currencies.
- Cryptocurrencies are not backed by a central government. They are not insured by a central government like U.S.-dollar deposits into banks. If you accumulate a cryptocurrency at a third-party company, and they go bankrupt or gets hacked, the government has absolutely no obligations to get your money back. You”re on your own.
- The value of a crypto changes constantly. It can very quickly, even by the hour. It depends on many different factors, including delivery and market demand. A stock that’s worth $1, 000 today might be worth just $100 tomorrow. If the value goes down, it doesn”t necessarily mean it will go back up again.
Using cryptocurrency for payments
If you’ve been thinking about using cryptocurrency to pay for something, know that it‘s different than paying with a credit card.
- If something goes wrong with your cryptocurrency, you do not have an act to help you recover the money. Credit cards and debit cards come with legal protections. If something goes wrong, you can contest a charge, and your credit card company will help you recover the money. Cryptocurrencies do not.
- With cryptocurrency payments, once you send them, you can”t get them back unless the person you sent them to sends them back. Before you buy anything with cryptocurrency, check out the seller’s reputation, location, and how to contact them if there is a problem with the transaction. Check out the seller”s feedback before you buy.
- Information about your transactions may be publicly available. People often talk about cryptocurrencies as anonymous. But the truth is actually quite complicated. A blockchain is a public ledger of every cryptocurrency transaction. It includes both the payment and receipt side of each transaction. Blockchains can be used to store information like transaction amounts and the wallet addresses of the sender and recipient, which is simply a long string of numbers, letters, and punctuation. Despite the fact that you can register your digital wallet account with a fake email address, it is still possible to identify the people who participated in a particular transaction using their real names by using transaction and account information.The information collected by an online retailer, such as your shipping address and credit card number, can later be linked to you when you buy something from that retailer.
How To Avoid Cryptocurrency Scams
Scammers are always looking for new ways to steal your hard-earned money. One sure sign of fraud is anyone who tells you to send them money by wire transfer, gift cards, or cryptocurrency. In fact, if someone tells you to send them any type of money, they”re probably a scammer. If you pay for something, you usually don”t get your money back. Which is why they”re counting on you. Here are some cryptocurrency scam tips to watch out for.
Investment and business opportunity scams
- Several companies claim that you can earn a lot of money and become financially independent very quickly.
- Many recruiters say that if you pay in cryptocurrency to join their program, you”ll get recruitment rewards in cryptocurrency. If you spend more cryptocurrency, you will likely make more money.
- Some scam artists start by pretending to be investment managers who want to help you grow your money. They say they can help you if you give them the cryptocurrencies you”ve bought. Once you log in to their investment account, you”ll find that you can”t withdraw your money unless you”re willing to pay fees.
- Scammers send unsolicited job offers to lure people into investing in cryptocurrencies.
- Some scammers post fake job listings on job websites. They’ll offer you a job for a fee, but they’ll take your money or personal information instead.
Look for claims like these to help you spot the companies and people to avoid:
- Scammers claim that they can make you money. A scammer promises you a profit. It doesn”t matter if a celebrity endorses it or if it”s a real person that gives it a review. Those can easily be fabricated.
- They promise big payouts with high rates of return. Nobody can guarantee a specific return, say, double their money. Much less in a couple of weeks.
- Scammers promise free cash. They’ll claim they’ll give you free money, but free money promises aren’t real.
- Scammers often make big claims without providing any details or explanations. Smart businessmen want to know how their investments work and where their money goes. And good investment advisors will share that information.
Before you invest, make sure you look into it first. Look up the name of the company on Google, plus words like ‘review, scam, complaint.’ See what others are saying about them. And read more about common investment scams.
You may receive emails from scammers claiming to have embarrassing or compromising photos, videos, or personal information about you. If you don”t pay them in cryptocurrency, they threaten to publish the information. Don”t waste your time with this. This is blackmail and extortion. Inform the FBI, and they will look into it.
Social media scams
If you see a tweet, text, or email telling you to send cryptocurrency, that means it’s a fake. Even if the message comes from someone you know, it doesn”t mean it”s not real. They might be having trouble with their social media accounts. Report the scam to the social media platform. Then contact the FTC at ReportFRAUD.ftc.gov
How To Report Cryptocurrency Scams
Report any fraud or other suspicious activity involving cryptocurrencies to
- at ReportFraud.ftc.gov
- at CFTC.gov/complaint
- at sec.gov/tcr
- the cryptocurrency exchange company where you sent the money