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How to Detect Cryptocurrency Scams
#1
Hi, I'm reading this book, and wanted to share this quote with you.

"How to Detect Cryptocurrency Scams Cryptocurrencies are in high demand as millions of people around the world become a part of the Cryptocurrency era. Of course, scammers are also taking advantage of digital currencies in attempts to lure unsuspecting victims into purchasing fake cryptocurrencies. Therefore, it is imperative to understand how to detect cryptocurrency scams. This section will share some practical tips that can help identify cryptocurrency scams. When considering a cryptocurrency, watch out for the following concerns: Check the blockchain: Every cryptocurrency is built on a blockchain technology. Knowing this can help to determine the authenticity of a cryptocurrency by asking what blockchain the digital currency is built on. For example, is it built on Bitcoin, or Ethereum, blockchain? If so, rest assured that the digital currency has some degree of legitimacy. Liquidity: If a digital currency is legitimate, it should be easy to liquidate, in other words, have the ability to be able to turn a digital currency’s commodity asset into other cryptocurrencies, or back to hard currency. A digital currency that lacks this attribute is far from legitimate. Function: The function of a digital currency also determines its legitimacy. The company behind a legitimate cryptocurrency will have a functional business plan, or model, through which the currency can be used to address a real-life problem and/or solve it. The Bitcoin and Ethereum blockchains have many uses for the creation of decentralized applications and smart contracts. Thus, these two important blockchain technologies are currently used to solve some real-life problems and have the potential to be used for solving even greater problems in the future. Digital currencies such as these that meet this requirement are therefore legitimate. The people behind it: This is another factor not to overlook. The people behind the creation of a cryptocurrency also determine the legitimacy of a digital currency. One should perform research to see if the people behind the currency have a track record of honesty, as well as flawless personal and economic records. They should never have been involved in any illegal businesses, such as Penny Auctions and Ponzi Schemes, and are both conservative and transparent in their dealings. Phishing impersonators: The cryptocurrency world is filled with impostors. Most of these impostors use social media to lure unsuspecting prey with offers that are intended to defraud them. Such impostors may offer a service, and then ask their potential target to give them their private keys to confirm the authenticity of their wallet. Once such confidential information has been released, these impostors will phish the private key and use that information to eventually scam an investor, even after gaining their coins. Under no circumstances reveal your private keys to anyone. A credible cryptocurrency company will never ask for private keys, unless the actual investor needs it to access their own account. Cryptocurrency-flipping scams This is another common cryptocurrency scam investors should guard against. If a cryptocurrency company asks to exchange your digital currency for money after an investor has paid the initial start-up fee for the currency, or if an investor is promised that an initial investment will be doubled overnight, caution is needed. Cryptocurrency pyramid schemes: This cryptocurrency scam is more difficult to identify than some of the other scams listed here. This difficulty in detection has made it more successful than the other scams. Scammers who use this technique often present themselves as cryptocurrency creators and promise high yields on investments, within a short period of time. They encourage investing in the digital currency as a multi-level business idea. They lure with the promise of turning a small investment into a goldmine by signing up more members for the business through referral links. In a short time, hundreds, or thousands, are lured into the scheme. The scammer then walks out on investors after fleecing them of their money. Detecting a cryptocurrency scam can be done by comparing any digital currency with the qualities listed above. If the digital currency meets these requirements, one can be reasonably certain it is a safe investment. It is always advisable to trade with care when investing in cryptocurrency. Ways to Protect Yourself As the saying goes, prevention is better than the cure. Here are some further warnings to heed to when considering investing in cryptocurrency: Social media and the Internet in general have scammers on the prowl. Exercise caution when presented with any cryptocurrency investment offer. Do not be tempted to jump at any offer. Instead, perform due diligence to arrive at a wise investment decision.  If a website offers you too-good-to-be-true cryptocurrency offers, do not be in a hurry to accept such offers. Remember, if it sounds too good to be true, it is probably not true.  Even when dealing with a credible cryptocurrency broker online, be on guard. Make certain it is both the right broker and an authentic one. A proliferation of imposters and fake websites are run by scammers.  When redirected to a website and asked to provide confidential information, such as a wallet address or private keys, this is, of course, a red flag. Instead of supplying such information, log out of the website and do not return.  Do not engage in any financial transactions involving cryptocurrency on social networks. If your gut tells you that you are dealing with a potential scammer, follow your instincts. That decision alone may prevent becoming a victim of an online scam.  Cryptocurrency investors can ward off potential scammers by implementing these tips. Ignoring these can lead to being scammed. An informed investor will avoid financial loss by playing it safe." (from "Blockchain: Discover the Technology behind Smart Contracts, Wallets, Mining and Cryptocurrency (including Bitcoin, Ethereum, Ripple, Digibyte and Others)" by Abraham K White)

Start reading it for free: http://a.co/1CsTzCI
Cardano is the most promising 3 gen. crypto right now.


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#2
Hard to read with no proper paragraphs. But basically nothing in there that we would not tell a newbie ourselves now (having learnt the hard way!)
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#3
(2019-06-26, 01:30 PM)BobBobert Wrote: Hard to read with no proper paragraphs.  But basically nothing in there that we would not tell a newbie ourselves now (having learnt the hard way!)

Yeah sorry for bad formatting. I don't know why Amazon don't keep the formatting when sending it from my Kindle to an email. Suck pretty much. I agree.
Cardano is the most promising 3 gen. crypto right now.


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