About Crypto Scams

About Crypto Scams

Cryptocurrency is an exciting trend that is changing the way people make transactions, invest and save. With many products and services going digital, why not currency? Since its debut with bitcoin in 2008, cryptocurrency was initially viewed with skepticism but is now being embraced by mainstream merchants and payment platforms.

Along with this development is the rise of crypto scams. People are losing millions in fake crypto products and fraudulent bitcoin investments. If you have lost money in a crypto scam, there are services that can help.
Cryptocointrace experts can provide you with assistance if you have been affected by a crypto scam. Our team of researchers knows what to look for when investigating a variety of frauds. We can provide you with information and guidance through our crypto reports that will help you get results. Contact our Cryptocointrace professionals today for a consultation.

What Is Cryptocurrency?

One reason crypto scams have been so successful is that people are desperate to jump on the cryptocurrency bandwagon even if they do not know how cryptocurrencies work.
Although it may take some time and research to comprehend cryptocurrency and blockchain technology, it is important to do your own due diligence before using or trading cryptocurrency. Being informed is the best protection against crypto scams.
Cryptocurrency is a digital currency that has no physical equivalent. You will not be able to hold bitcoin or ethereum in your hand or put it in your purse. It does not go through a credit card or a bank account, although you can use these methods to purchase cryptocurrency. It is not regulated by a central bank, but by the blockchain, which is created by connected computers using ledger technology.
All transactions are recorded on the blockchain, and once a transaction has been recorded it can’t be deleted. These transactions are anonymous and encoded with encryption for maximum security. People who are fans of cryptocurrency value this anonymity and security and enjoy freedom from government regulation.

The Rise of Crypto Scams

However, the advantages many seek in cryptocurrency also carry a darker reality. The freedom from regulation and anonymity also provide safe havens for cybercriminals. If transactions are anonymous, money laundering can be easier. Lack of government oversight means there are fewer resources to prevent and tackle fraud than securities, for example, which are tightly regulated.
Basically, the world of cryptocurrency is fine as long as nothing goes wrong and there are no unscrupulous people. However, this perfect world does not exist. There are plenty of people who will use the faceless nature of cryptocurrency transactions to mask their identity and funnel funds obtained through crypto scams.
Although its rising popularity shows that many people are comfortable taking risks, it is estimated that $9 million is lost in crypto scams daily. Fortunately, governments are taking action and finding ways to provide recourse to consumers who lose money to crypto scams. There are also many services such as Cryptocointrace, that can help people take steps to recover funds from crypto scams.

Types of Crypto Scams

There are many ways scammers are taking advantage of the public’s enthusiasm for cryptocurrency. These include products and investments that turn out to be fraudulent. The following are some common types of crypto scams:

Fake Crypto Wallets and Apps

The key to managing cryptocurrency is through a reliable, secure wallet. The right crypto wallet will keep virtual coins safe and make transactions, sending and receiving money secure. There are hardware forms of crypto wallets that may resemble a USB stick or mobile apps.
As with any devices and apps, some are legitimate and others are sold by fraudsters. In many cases, they simply don’t work. You start trying to use it, but nothing happens. Other fake devices contain malware that implant viruses or can steal data from users. Some scammers sell these apps and retain access so they can rob you of your coins.
It is important never to purchase these wallets from an unknown source. Even GooglePlay offers some apps that are full of viruses and are used for scams. Be careful before you download anything.

Fake ICOs

Since Bitcoin hit the market in 2008, thousands of other cryptocurrencies have emerged. They all begin with ICOs, which like IPOs or Initial Public Offerings for companies, require capital through investment. These may seem like exciting opportunities, but according to Investopedia, 80% of ICOs are fake. Those that turn out to be legitimate have slim chances of succeeding, which makes ICOs a risky investment.
If you still want to invest in an up-and-coming type of virtual coin, do so only through legitimate platforms. Never give money directly to the ICO’s site or if a representative for the coin asks you to wire them money directly or send credit card information.

Crypto Broker Scams

In addition to using cryptocurrency, many people want to cash in on its rising value and popularity. They will seek out a broker who provides ways to trade bitcoin and other cryptocurrencies. Many of these brokers are legitimate and can provide a significant return for their clients. Others, however, are fake and will steal your funds.
Always check that a broker is well-regulated and has a license from a top-tier regulator. Ask questions and investigate a broker thoroughly before signing anything or setting up an account. Consult with Cryptocointrace if you need additional information about brokers and want to ensure that the one you want to work with is reliable.
The key to avoiding all types of crypto scams is to research the product, service, or broker carefully. Familiarize yourself with procedures, for instance, that all reliable ICOs are conducted through specific platforms or that a broker should have certain licenses. Do not rush into anything that involves money and consult with professionals such as Cryptocointrace if you have questions

If You Have Been Affected by a Crypto Scam, Talk to Cryptocointrace Professionals!

If you have lost money to a crypto scam, talk to Cryptocointrace today. Our team has the expertise and knowledge as well as tools to perform in-depth research. We are skilled at investigating all types of scams and have extensive experience in the financial industry. We will help you get results for your claim and resolve your complaint or dispute.

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