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Here’s everything that you need to know about CryptoCurrency scams

By alex miller In Business & Finance Posted On April 24,2020 0 Comments

The world is going digital and so is financial trading and other trading programs. An unknown gentleman, presumably named Satoshi Nakamoto, developed the first decentralized currency that, taking advantage of digitalization and decentralization, ended up being the first cryptocurrency that shook the world by storm. Now, what exactly is this cryptocurrency and how is it regulated? Do read the article completely to find out about the in’s and out’s of what the future of digital currency holds and whether cryptocurrency is a scam or not?

Crypto is quite different from traditional liquid currency, primarily being the fact that it is a digital version of cash which is backed neither by a physical commodity nor by any central agency or government. You are going to need a wallet to store your cryptocurrency which will either be web-based or app-based. The wallet helps you store the digital key, also known as password, that will allow you to access the address of the cryptocurrency. You can also view your crypto balance anytime you want just like your bank account. 

Major cryptocurrencies include Bitcoin, Ethereum, Ripple and Litecoin with new cryptos getting added to the forte every single day. However, crypto values are based primarily on a shared belief among the individuals and not exactly dependent on the financial situation of the country. Since these cryptos don’t have a centralized body to record and monitor their use, their value can be quite volatile at times. The decentralization is the reason many countries have refused to acknowledge the cryptocurrency, however, if someone has a thorough understanding of blockchain, the technology surrounding cryptocurrency, he can easily be a successful trader in the long run. 

Cryptocurrency payments have started to get accepted by the government, however, the payments might not be transparent. Legal protection of your money is not viable when it comes to crypto payments as in credit cards because the amount is not being issued by a particular company as of such. It is advisable to research about the company before making any payments in cryptos. Also, do note that refunds are not applicable on cryptos at all. 

In spite of each crypto transaction being recorded in a public domain, the names of the buyers and sellers are never disclosed in the public eye. At max, only the wallet IDs can be brought out in public and that’s the maximum information the government can decipher out of you. The lack of tracking information has enabled cryptos to be the choice of dealing when it comes to buying drugs and other illicit activities. 

Unfortunately, with the popularity of cryptocurrency has skyrocketed so much that it has given rise to a lot of crypto scams as well. You must be already familiar with a lot of them promising high returns, quick turnaround time, extremely minuscule amounts of commission and fake trading bots. Whenever you see a website promoting such dubious activities, it is better to stay away from them if you want to save your money. 

The final nail in the coffin is the new way of duping customers by installing malicious software into the customer’s computer without them actually knowing. This malicious method of crypto mining happens when cybercriminals hack into personal systems and the software mines for cryptocurrencies without the customer getting to know about it. The code is simple, easy to deploy and it keeps on running in the background without anyone being able to detect it. 

It is advisable to not install apps from unknown sources into your computer so as to prevent such malicious attempts of stealing your money. 

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