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Crypto

What You Need to Know About Cryptocurrency Scams

Cryptocurrency is the new age currency. Though the market is highly volatile the profits made can be huge. This is why the whole cryptocurrency market is so susceptible to scams. Therefore, any cryptocurrency platform, be it investment sites or exchange platforms, carry the possibility of being a fraud site.

Whenever investing in a particular endeavor using cryptocurrency, it must be checked for blockchains. With proper blockchain, users will have all the transaction data of the digital currency and will also be able to track it further. The customers, before investing must also check the validity of the currency and the ICO regulations of the firm. 

If proper care is taken in this step, users can identify any discrepancies in the firm and thereby stop themselves from investing in a scam. However, even after this process, there are several ways in which scams can be carried out. 

Prominent cryptocurrency scams and how to avoid them

Imposter Websites

Cryptocurrency solely exists on the internet. So to keep transactions safe, the website it is being used on should be checked carefully. Often, even after proper checking, the customer may end up on a proxy site created by the scammers to initiate fake transactions. Scammers can put fake links on the original site which takes the user to a different platform. There, all the investment is scammed off the user. 

Users must always check the validity of the site and see if it is a secure one. To do this, they may look for the green lock symbol in the URL bar or the ‘https’ (instead of just ‘http’) before the website address.

Fake wallet Apps

With good marketing skills and a lot of imagination, scammers have created this method of scamming. Every kind of cryptocurrency needs to be stored somewhere digitally. These wallet apps market themselves to be secure and very trustworthy. Trusting them people start storing their digital currency in such wallets until the day when suddenly the currency stored disappears and the app shuts down. 

To avoid this, users must never download any unknown third-party app. Even before downloading a wallet, proper research is essential to ascertain its authenticity. Only then is the app worthy of storing digital currency.

Pump and Dump

The cryptocurrency market is highly volatile. And since its initial days of bitcoins now the market is filled with different altcoins. 

The scammers use both these features to their advantage. By creating a new currency, they hype up its value through several means. With proper marketing and using influencers, they succeed in surging the price. Online inexperienced users then invest huge sums of money to buy these currencies in hopes of big returns only to realize that the currency has no such high value. 

To avoid such scams users must stick to the known and widely used forms of cryptocurrency.

Mining scams

Cloud mining allows regular investors to mine cryptocurrency without expensive hardware. With proper strategies, users can earn profits for every coin mined. Scammers sometimes might take advantage of such cloud services and take control of all the invested money in the cloud. 

Users must identify fake clouds. This can be done by singling out platforms that provide unrealistic promises without any data to back it up.

What to do if scammed?

Scammers come up with new scams regularly and con a lot of users online. The best way to retrieve the funds lost in such a situation is to get in touch with an asset recovery service. These companies are specialized to handle such crises and have the experience and know-how of identifying and taking the required steps to recover the money lost.

Funds Recovery is a recovery site which provides the cryptocurrency scam victims a fast and simple way to regain their lost money. It is an online platform that can help victims all around the world in recovering their money without much hassle.

Cryptocurrency trade is a lucrative option to gain huge profits or to make good investments. By exercising a bit of caution and doing thorough research, traders can get all the benefits of cryptocurrencies without becoming prey in online scams.